Masdar, Iberdrola to invest in Germany’s $1.8bn Baltic Eagle wind farm

Image courtesy: Iberdrola

Abu Dhabi renewable energy firm Masdar and Iberdrola have agreed 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.

The global clean energy firm will control and manage the asset, providing operation and maintenance services and other corporate services.

The deal, which values the Baltic Eagle wind farm at approximately $1.8bn, is part of the two entities’ wider acknowledgement agreement.

Masdar and Iberdrola 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. The wind farm will have an anticipated annual production capacity of 1.9 terawatt-hours (TWh), enough to meet the clean energy demands of 475,000 homes.

#Masdar and #Iberdrola sign agreement to co-invest in Baltic Eagle offshore wind farm. The 50 turbine wind farm will have a capacity of 476MW – producing enough clean energy to power 475,000 homes and save 1M tonnes of CO2 emissions from being released into the atmosphere. pic.twitter.com/12OYjDLSVg

— Masdar (@Masdar) July 26, 2023

It will prevent 800,000 tons of carbon dioxide from being 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 $71.29/MWh for the first 20 years. Similarly, 100 per cent of its production has already been sold via long-term contracts.

“When companies with long histories of pioneering clean energy join forces, it creates lasting solutions for people and the planet,” said Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, COP28 president-designate and chairman of Masdar.

“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.”

Masdar, Iberdrola boost partnership

Meanwhile, Dr. Al Jaber and Iberdrola’s executive chairman Ignacio Galan met in Madrid earlier in July. The two industry leaders spoke about the urgent need to triple global renewable energy capacity to ensure the Paris Agreement goals of limiting global temperature rises remain within reach.

Masdar is active in over 40 countries and has a total renewable electricity generation capacity of over 20GW. Its global investment portfolio exceeds $30bn and it is targeting a renewable electricity capacity of at least 100 GW by 2030.

Similarly, Iberdrola is a global leader in clean energy, networks and storage – the largest electricity utility in Europe and the second largest in the world by market capitalisation, with more than $78.6bn. The clean energy giant Iberdrola has 3,000 MW of offshore wind projects under construction or secured with zero seabed costs.

The company connected France’s Saint-Brieuc offshore wind farm to the electricity grid and its Vineyard Wind offshore project in the US is expected to come online in the last quarter of 2023.

The UAE and Germany signed an agreement to advance projects of joint interest in areas including energy security, decarbonisation and climate action in September 2022. The agreement between the two countries paved the way for Masdar to explore offshore wind opportunities in the Baltic Sea to support Germany’s clean energy goals.

Masdar and Iberdrola’s $1.8bn deal marks a significant contribution towards that aim.

Read: UAE’s Masdar successfully issues first $750m 10-year green bond