(MENAFN- Emirates News Agency (WAM))
ABU DHABI, 21st June, 2022 (WAM) -- Abu Dhabi National Energy Company (TAQA), Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company have entered into binding agreements for TAQA and ADNOC to purchase stakes in Abu Dhabi Future Energy Company (Masdar) from Mubadala.
This is a major milestone towards completing the transaction announced late last year by President His Highness Sheikh Mohamed bin Zayed Al Nahyan. The partnership sets out to create a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of TAQA, Mubadala and ADNOC under the Masdar brand.
The transaction puts a value for the new Masdar joint ventures at approximately AED7 billion (US$1.9 billion) on a 100% equity basis. The binding agreements will see TAQA acquire a 43% controlling stake in Masdar's renewables business, with Mubadala retaining a 33% interest and ADNOC owning the remaining 24% interest.
Meanwhile, ADNOC will hold a 43% controlling stake in Masdar's new green hydrogen joint venture, Mubadala will retain a 33% interest, and TAQA will hold a 24% effective stake.
As part of the deal, TAQA will contribute its rights to a minimum 40% share in future Abu Dhabi renewable projects and green hydrogen projects.
Jasim Husain Thabet, TAQA's Group Chief Executive Officer and Managing Director, commented, 'Today's signing of binding agreements for this transaction demonstrates how TAQA has firmly established itself as a low carbon power and water champion. At the completion of this transaction, TAQA will exceed its 2030 targets of having more than 30% of its generation capacity from renewable energy and will accelerate our future growth plans as the demand for renewable power and green hydrogen projects significantly increase.
Working closely with Mubadala and ADNOC, we will transform the energy landscape through Masdar, grounded in collaboration and great ambition to drive forward the UAE's 'Net-Zero by 2050 Strategic Initiative'.'
Khaled Salmeen, Executive Director of the Downstream Industry, Marketing & Trading Directorate of ADNOC, said that signing the binding agreements for this landmark transaction marks another important milestone in ADNOC's ongoing journey to future proof its operations and grow its new energies business.
'We are excited to join forces with TAQA and Mubadala, consolidating our combined efforts to create a new national champion for renewable energy and green hydrogen. ADNOC has been a reliable supplier of energy to customers worldwide for more than five decades, and we are confident that this new world-class partnership will continue to position the UAE at the forefront of the global energy transition, while cementing ADNOC's foray into the international clean energy space.'
Musabbeh Al Kaabi, CEO of UAE Investments of Mubadala Investment Company, said, 'This milestone is a clear testament to Mubadala's commitment to realising the UAE's long-term sustainability ambitions. We established Masdar 16 years ago with the foresight to diversify the UAE's energy mix and advance the global energy transition. 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.'
The transaction is still subject to the completion of necessary transaction requirements, including obtaining relevant third party and regulatory approvals, which are expected to take a number of months.
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