Masdar and Iberdrola have entered into a strategic agreement to co-invest in Baltic Eagle, a 476-megawatt (MW) offshore wind farm situated in the German Baltic Sea. Under the terms of the agreement, valued at around €1.6 billion, Iberdrola will retain a majority 51% stake in the asset, facilitating a boost in Europe’s green energy security. Masdar’s CEO, Mohamed Jameel Al Ramahi, and Iberdrola’s Executive Chairman, Ignacio Galan, signed the deal in Madrid, strengthening their partnership and creating potential for future renewable energy investment opportunities.
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The Baltic Eagle wind farm will consist of 50 wind turbines with monopile foundations, each capable of producing 9.53 MW of power. The wind farm’s expected annual production is around 1.9 terawatt-hours (TWh), which is adequate to supply electricity to 475,000 households. This large-scale production will save approximately 800,000 tons of CO2 from being released into the environment each year. The wind farm, which is set to commence operation in late 2024, has a minimum regulated tariff of €64.6/MWh for its first 20 years. Plus, 100% of its output has already been secured via long-term contracts.
Dr. Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate, and Chairman of Masdar, highlighted the landmark agreement, stating that the collaboration between pioneering clean energy companies could generate lasting solutions for people and the planet. The project will tap into Germany’s abundant wind power in the Baltic Sea to provide electricity to nearly half a million homes while reducing emissions. Ignacio Galan underscored Masdar’s visionary commitment to Baltic Eagle and noted that this significant project would bolster Europe’s green energy security, cut down emissions, and create thousands of highly skilled jobs.
In September 2022, the UAE and Germany signed an agreement to advance joint projects focused on energy security, decarbonization, and climate action. This Energy Security and Industry Accelerator Agreement (ESIA) also planned for Masdar to explore offshore wind opportunities in the Baltic Sea, thereby supporting Germany’s clean energy objectives. This €1.6 billion deal with Iberdrola significantly contributes to the achievement of these goals.
The partnership between Masdar and Iberdrola stands to propel Europe’s ambitious offshore wind development objectives forward. The two leading clean energy entities will pool their expertise to innovate solutions that can lead to enhanced project management practices, improved operational efficiencies, and ultimately, a reduction in costs to make offshore wind energy more competitive. Iberdrola is already contributing significantly to the energy transition and job creation, with 3,000 MW of offshore wind projects in the pipeline.
From its inception in 2006, Masdar has been a frontrunner in the clean energy sector across the UAE, the Middle East, and globally. With an investment portfolio exceeding US$30 billion, Masdar has projects in over 40 countries and provides more than 20 GW of clean energy, enough to power over 5.25 million homes. With its partners, Masdar continues to pioneer and develop landmark renewable energy projects worldwide.