Combining Efforts in Renewables, TAQA, and ADNOC to Become Shareholders in Masdar
Posted on 12/01/2021
Founded in 2006, Masdar (Arabic:مصدر), also known as the Abu Dhabi Future Energy Company, is a renewable energy company based in Abu Dhabi and is a subsidiary of Mubadala Investment Company. In a groundbreaking deal, Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) will become shareholders in Masdar, joining Mubadala. Masdar will no longer be fully-owned by Mubadala. The deal aims to positioning Masdar to become a global champion in renewables and green hydrogen. The agreement consolidates the efforts of all partners, building on previous work of the Abu Dhabi Hydrogen Alliance led by Mubadala, ADNOC and ADQ and the recent launch of a green energy venture between ADNOC and TAQA. ADQ is TAQA’s majority shareholder. The deal mandates the three partners to combine their renewable energy and green hydrogen portfolios into Masdar.
The deal on was revealed by Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces. The agreement signing was in the UAE Pavilion at EXPO 2020.
Dr. Sultan Al Jaber will remain Chairman of the expanded Masdar entity that will cover both renewables and green hydrogen business areas.
The deal received approval on November 30, 2021. Mubadala sold its 67% interest in Masdar (the clean energy business) to ADNOC and TAQA. Mubadala recorded a gain of 2,196,000,000 AED (US$ 597,790,728).
Ownership Structure
It is planned that TAQA will take the leading role with a 43% shareholding in Masdar’s renewable energy business with Mubadala retaining 33% and ADNOC holding 24%. Meanwhile, ADNOC will take the leading role with a 43% shareholding in Masdar’s green hydrogen business, with Mubadala holding 33%, and TAQA 24% respectively.
Masdar’s Sustainable Real Estate Business stayed with Mubadala. Masdar City, Abu Dhabi’s flagship sustainable urban development, will continue to remain under Mubadala’s ownership.
NOTE: ADQ: Abu Dhabi Developmental Holding Company PJSC.