Abu Dhabi Future Energy Company PJSC – Masdar, a key player in the UAE's sustainable energy sector, has concluded the acquisition of a 49% stake in the 3GW Dogger Bank South (DBS) project, among the globe's largest planned offshore wind farms
In collaboration with RWE, a prominent German renewable energy firm, the anticipated US$13bn investment is poised to significantly boost the UK economy. This move underscores the UAE's dedication to advancing net-zero objectives in the UK and globally, aligning with the US$12bn UAE-UK Sovereign Investment Partnership (UK-UAE SIP) targeting technology, infrastructure, and the energy transition.
Masdar's enduring commitment to global offshore wind initiatives is spotlighted in this announcement. A decade ago, Masdar, RWE, and partners unveiled the 630MW London Array wind farm, then the world's largest. Furthering their portfolio, Masdar invested in the pioneering 30MW Hywind project, the first floating offshore wind farm, and the 402MW Dudgeon offshore wind farm. Last year, Masdar entered a co-investment agreement for the 476MW Baltic Eagle offshore wind farm, set to power 475,000 homes.
Situated over 100 kilometers off England's northeastern coast, the DBS offshore wind farm will span two sites, DBS East and DBS West, each boasting a 1.5GW capacity over 500 square kilometers. Anticipated to generate electricity for three million UK homes, the mega-facility aims to create 2,000 jobs during construction and over 1,000 direct and indirect jobs during operation.
Mohamed Jameel Al Ramahi, CEO of Masdar, expressed, “The addition of the Dogger Bank South project demonstrates our commitment to developing Masdar’s offshore wind capacity and expertise as an important component in our pursuit of the target of 100GW renewable energy portfolio capacity by 2030. We look forward to a successful collaboration with RWE over the years to come.”
Markus Krebber, CEO of RWE, commented, “We’re delighted to have completed this transaction which is of great importance for the further development of offshore wind in the UK, one of our core strategic markets. Together with Masdar, we aim to deliver 3 gigawatts of new offshore wind capacity and make a significant contribution to the decarbonization of the UK’s energy system."
Masdar and RWE formalised their partnership on the DBS projects during COP28 in the UAE last December. Following the transaction closure, Masdar now holds a stake in both projects, with RWE retaining a 51% share. The collaborative efforts of the two companies will drive the development and operation of the wind farms.
Construction on the projects could commence by late 2025, with the initial 800MW of electricity expected to be online in 2029. Full commissioning is slated for completion by the end of 2031.
The next pivotal milestone involves the submission of Development Consent Orders in the second quarter of 2024. Success would lead to securing Contracts for Difference (CfD), followed by financing, construction, and ultimate commissioning by 2031.
Masdar is steadfastly working towards achieving a renewable energy portfolio capacity of 100GW by 2030, aligning with The UAE Consensus to triple global renewables capacity by the end of this decade.
