Abu Dhabi Future Energy Company - Masdar has reached an agreement with RWE, a leading renewable energy firm headquartered in Germany, to acquire a 49% stake in its 3GW Dogger Bank South (DBS) project.
Masdar, the UAE’s clean energy powerhouse, said it is part of a £11-billion investment ($13.7 bIllion) that paves way for its foray into the UK’s renewable energy sector.
This joint investment will provide a huge boost to the UK economy and demonstrates the UAE’s long-term commitment to supporting net-zero goals in Britain and around the world.
It builds on the £10 billion UAE-UK Sovereign Investment Partnership (UK-UAE SIP) to invest in technology, infrastructure and the energy transition.
Located over 100 kilometers off the northeastern coast of England, the DBS offshore wind farms will be split across two sites, the DBS East Array, and the DBS West Array. Each site will have the capacity for 1.5GW and span 500 sq km.
Masdar will acquire a 49% stake in the landmark renewables project while RWE, with a 51% share, will remain in charge of development, construction, and operation throughout the life cycle of the projects.
The construction phase could start as early as end 2025 and the first 800MW of electricity is planned to come online in 2029. The DBS projects are expected to be fully commissioned by end of 2031.
One of the world’s largest planned offshore wind farms, ADBS is capable of powering millions of British homes, reducing emissions and creating up to 3,000 jobs. Closing of the transaction is subject to customary approvals and expected in the first quarter of 2024.
Masdar CEO Mohamed Jameel Al Ramahi and RWE Chief Executive Officer Dr Markus Krebber signed the agreement yesterday (December 1) on the sidelines of the UN’s climate change conference COP28 in Dubai.
The 3GW DBS projects bring together global clean energy pioneers Masdar and RWE, a leading renewable energy company headquartered in Germany.
The mega-facility is expected to generate enough energy to power 3 million typical UK homes. The projects are predicted to create 2,000 jobs during construction and more than 1,000 direct and indirect jobs during their operational phase.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said: "As one of the world’s largest offshore wind farms, the DBS will make a huge impact on reducing emissions while supplying millions of UK families and businesses with clean, affordable and secure energy."
The world needs to triple renewable energy capacity and double energy efficiency by 2030 if we are to keep the Paris Agreement goal of limiting temperature rises to 1.5 degrees within reach.
At COP28, as we strive to form a unified plan to deliver the urgent course correction the planet needs, projects such as DBS show how nations, companies and communities can join forces to deliver powerful solutions.
On the partnership, Al Ramahi said: "We are delighted to have come onboard at the early stages of this pioneering project, enabling us to leverage our shared passion and expertise in renewables. The UK is the world’s second largest offshore wind market and offers huge growth potential."
Masdar, he stated, has been active in the UK for more than a decade, developing world-class clean energy projects such as Dogger Bank South which demonstrate how innovation and collaboration can lead to a cleaner, greener future.
"As global leaders strive to form a unified and urgent plan to tackle the climate crisis at COP28, Masdar will continue to expand its wind energy portfolio as we target a total global capacity of 100GW by 2030 in support of key climate goals," he added.
Krebber said: "We’re delighted to welcome Masdar onboard as our partner and co-investor in the delivery of our Dogger Bank South projects which, at 3GW in size, make up RWE’s largest offshore wind development in the UK. With Masdar, we have a strong and renowned partner at our side who shares our ambition to further drive the growth of offshore wind energy."
"In combination with RWE's many years of experience in the development, construction, and operation of offshore wind farms, we are in an excellent position to strongly support the decarbonization of the UK," he added.-TradeArabia News Service