Masdar joins Iberdrola to co-invest in Baltic Eagle wind farm in Germany

Masdar has signed a strategic agreement with Iberdrola, a global clean energy leader, to co-invest in the 476 megawatt (MW) Baltic Eagle offshore wind farm in the German Baltic Sea. Iberdrola will retain a majority 51 per cent stake in the asset, which will help to accelerate green energy security in Europe.

According to the deal terms, Baltic Eagle wind farm is valued at approximately 1.6 billion euro. Iberdrola will control and manage the asset, providing operation and maintenance services and other corporate services.

The deal was signed in Madrid by Masdar’s Chief Executive Officer Mohamed Jameel Al Ramahi and Iberdrola’s Executive Chairman Ignacio Galan, as part of a wider acknowledgement agreement between the two clean energy powerhouses.

Both parties consider this a strategically important transaction and a critical milestone as they strengthen their partnership to explore further renewable energy investment opportunities in various technologies and regions.

Baltic Eagle will consist of 50 wind turbines built on monopile foundations, each with a unit capacity of 9.53 MW. Anticipated annual production is 1.9 terawatt-hours (TWh), enough clean energy to meet the electricity demands of 475,000 homes, saving 800,000 tonnes of CO2 released into the atmosphere annually.

The wind farm, which is scheduled to come into initial operation at the end of 2024, has a minimum regulated tariff of €64.6/MWh for the first 20 years. In addition, 100 per cent of its production has already been sold via long-term contracts.

Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar, said, “When companies with long histories of pioneering clean energy join forces, it creates lasting solutions for people and the planet. This landmark agreement between Masdar and Iberdrola will harness Germany’s abundant wind power in the Baltic Sea and bring electricity to nearly half a million homes, while cutting emissions. As the UAE looks ahead to hosting COP28, partnerships such as this show how we can hold back emissions without holding back progress.”

Galan, in turn, said, “Delivering the clean energy that the world needs requires companies with vision and commitment willing to make major investments in new infrastructure. Masdar brings all of these qualities to Baltic Eagle. This a major project will help drive green energy security in Europe, reduce emissions for homes and businesses, and support thousands of highly skilled jobs. Building long-term partnerships with sustainable leaders like Masdar will help Iberdrola continue leading the global energy transition.”

Dr Al Jaber and Galan met earlier this month. Ahead of the UAE hosting the UN climate change conference, COP28, they discussed the urgent need to triple global renewable energy capacity to ensure the Paris Agreement goals of limiting global temperature rises remain within reach.

In September 2022, the UAE and Germany signed an agreement to advance projects of joint interest on areas including energy security, decarbonisation and climate action. The Energy Security and Industry Accelerator Agreement (ESIA) signed between the two countries involved plans for Masdar to explore offshore wind opportunities in the Baltic Sea to support Germany’s clean energy goals. Today’s €1.6 billion deal with Iberdrola marks a significant contribution towards that aim.

The strategic partnership between Masdar and Iberdrola will help to advance Europe’s ambitious offshore wind development targets. The two flagship clean energy companies will share knowledge and develop innovative solutions. This can also lead to enhanced project management practices and improved operational efficiencies, which ultimately drive down costs and makes offshore wind more competitive.

Thanks to the Group’s first mover status, Iberdrola has 3,000 MW of offshore wind projects under construction or secured with zero seabed costs. The company is helping to support the energy transition and job creation in its supply chain worldwide.

At the beginning of July this year, Iberdrola connected France’s Saint-Brieuc offshore wind farm to the electricity grid. It is the first large-scale offshore wind project to be delivered in the Brittany region.

In addition, the Vineyard Wind offshore project in the US is expected to come on-line in the last quarter of 2023. The Baltic Eagle wind farm in Germany will be operational in 2024, with East Anglia 3 in the UK and Windanker in Germany beginning production in 2026.

These projects will add to Iberdrola’s current 1,258 MW of operational offshore wind projects, including West of Duddon Sands in the Irish Sea, Wikinger in the German Baltic Sea, and East Anglia ONE in the southern North Sea.

Since 2006, Masdar has pioneered the clean energy sector in the UAE, the Middle East and worldwide. With projects across 40 countries, Masdar is delivering more than 20 GW of clean, life-changing energy - enough to power over 5.25 million homes. Its global investment portfolio exceeds $30 billion and, in some cases, Masdar’s projects are bringing continuous electricity to places where there was none. Together with partners, Masdar has developed landmark renewable energy projects across continents.