Masdar co-invests in Iberdrola's Baltic Eagle offshore wind farm

UAE-based energy company Masdar has signed an agreement with Iberdrola to co-invest in the 476MW Baltic Eagle offshore wind farm in the German Baltic Sea.

According to the terms of the deal, Iberdrola will retain a majority 51% stake in the asset, will control and manage the wind farm, as well as provide O&M services.

The deal forms part of a wider collaboration between the two companies aimed at exploring renewable energy investment opportunities across a range of technologies and regions.

The partnership also supports an agreement signed between the UAE and Germany in September 2022, to advance projects of joint interest in areas including energy security, decarbonisation, and climate action.

Ignacio Galan, Iberdrola’s executive chairman, commented on the deal: “Delivering the clean energy that the world needs requires companies with vision and commitment that are willing to make major investments in new infrastructure.

"This a major project that will help to drive forward 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 to continue leading the energy transition globally.”

The Baltic Eagle wind farm, valued at €1.6 billion euros ($1.7 billion), will consist of 50 MHI Vestas wind turbines built on monopile foundations, each with a unit capacity of 9.53MW.

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The wind farm is scheduled to become operational at the end of 2024, with 100% of its production having already been sold via long-term contracts.

HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate, said: “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.”

The collaboration comes ahead of the UN climate change conference, COP28, and represents an effort from both parties to boost renewable energy capacity to meet Paris Agreement goals.

Iberdrola has 3,000MW of offshore wind projects under construction or secured with zero seabed costs. Currently, the firm has 1,258MW 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.

Masdar's global investment portfolio currently exceeds $30 billion. Together with various partners, the company has developed the Middle East’s first concentrated solar power plant in Abu Dhabi and the world’s first utility-scale offshore floating wind farm off the Scottish coast.