Iberdrola has forged a historic alliance with Masdar, the energy group of the Emirate of Abu Dhabi, with a vision to invest together in a multi-billion euro push into renewable energy. The two groups intend to cement strategic deals around offshore wind and green hydrogen projects in Germany, the United Kingdom, and the United States, as outlined during the Dubai climate summit COP28.
The collaboration builds on a prior partnership in the Baltic Eagle offshore wind project, a collaboration valued at 1.6 billion euros, and now expands to pursue fresh green initiatives in key markets. A major milestone in this broadened alliance is the joint investment in the Large-scale Anglia 3 offshore wind project in the United Kingdom. The project is designed to deliver approximately 1,400 megawatts (MW) of capacity and is in the final negotiation stage, with a potential signing anticipated by the end of the first quarter of 2024.
In this expanded framework, Masdar would hold a 49% stake in the British project, while Iberdrola would maintain a controlling majority. The two companies will explore co-investment opportunities in future offshore wind and green hydrogen ventures across Europe and other markets, with the possibility of participation from subsidiaries of Iberdrola.
Ignacio Sánchez Galán, chairman of Iberdrola, remarked that with 118 governments pledging at COP28 to triple renewable energy capacity by 2030, accelerating action from both public and private sectors is essential. He noted that after decades of commitment to renewables, grids, and energy storage, the new partnership with Masdar reinforces Iberdrola’s resolve to scale up investments.
Maritime projects continue
Iberdrola currently has offshore wind projects under construction valued at more than 10 billion euros, with financing and supply chains already secured for all. In the United States, plans call for turbines to be installed at Vineyard Wind 1, an 800 MW project that represents the country’s first commercial-scale offshore wind farm, with energy production expected to commence soon.
Earlier this year, Iberdrola connected the Saint-Brieuc offshore wind farm in France to the power grid, marking the Brittany region’s first large-scale offshore wind project. The Baltic Eagle wind power plant in Germany is under construction and slated to become operational in 2024. Projects such as East Anglia 3 in the United Kingdom and Windanker in Germany are scheduled to begin production in 2026.
Collectively, these initiatives will add to the existing portfolio of 1,258 MW of offshore wind already in operation, which includes the West of Duddon Sands farms in the Irish Sea, Wikinger in the German Baltic Sea, and East Anglia ONE in the southern North Sea. The total investment in these offshore wind endeavors amounts to around 4 billion euros.