TAQA, ADNOC to buy stakes in Masdar's renewables, H2 biz

Abu Dhabi National Oil Company (ADNOC) and multi-energy and water utility Abu Dhabi National Energy Company PJSC (TAQA) have signed binding agreements to acquire stakes in renewables promoter Masdar from its sole owner, sovereign investor Mubadala Investment Company PJSC, it was announced today.

The move is rooted in the December 2021 agreement between the Abu Dhabi-based partners to create a giant renewable energy and hydrogen business under the Masdar brand.

The new agreements specify that TAQA is to buy a 43% controlling stake in Masdar’s renewables business, with ADNOC taking 24% and Mubadala retaining a 33% interest.

Ownership over Masdar’s new green hydrogen joint venture will be split between 43% ADNOC, 33% Mubadala and 24% TAQA.

The deal values Masdar’s new joint ventures at around AED 7 billion (USD 1.9bn/EUR 1.8bn) on a 100% equity basis, TAQA said in the announcement.

TAQA added that it will contribute its rights to a minimum 40% share in future Abu Dhabi renewable energy and green hydrogen projects as part of this deal.

The parties expect to close the transaction in several months, subject to third-party and regulatory approvals.

"We established Masdar 16 years ago with the foresight to diversify the UAE’s energy mix and advance the global energy transition," commented Musabbeh Al Kaabi, CEO, UAE Investments of Mubadala Investment Company.

"Today’s signing with two of Abu Dhabi’s key energy players, ADNOC and TAQA, further cements Mubadala’s responsible investing strategy and is one step closer to delivering on the UAE’s sustainability aspirations. The new shareholding structure of Masdar solidifies the strategic partnership between Abu Dhabi’s powerhouses, consolidating the UAE’s pioneering position as a forward-looking global energy leader" Al Kaabi added.

(AED 1.0 = USD 0.272/EUR 0.257)

Choose your newsletter by Renewables Now. Join for free!