Masdar and Iberdrola Secure €5.2 Billion Deal for UK Offshore Wind Project and Completion of a 476MW German Offshore Wind Farm
In a significant move towards a cleaner and more sustainable future, Masdar, one of the world's leading clean energy companies, and Iberdrola, a global leader in renewable energy, have co-invested in the 1.4GW East Anglia THREE wind farm in the UK. This project marks Masdar's first venture with Iberdrola, its entry into Germany, and the company's largest ever euro-denominated financing.
The East Anglia THREE offshore wind farm, located near the coast of Suffolk, is expected to create over 2,300 jobs during construction and support 100 long-term roles across its lifetime. The project financing agreement, signed by a consortium of banks including NatWest, Royal Bank of Canada, and SMBC (Sumitomo Mitsui Banking Corporation) on July 9, amounts to approximately £3.5 billion (around EUR 4.1 billion euros).
Each company will have a 50% stake in and co-governance of the East Anglia THREE wind farm. This joint investment is one of the largest offshore wind transactions of the decade and represents a major step forward in supporting Germany's clean energy ambitions.
Masdar and Iberdrola are planning to jointly invest EUR 15 billion in future clean energy projects, with a focus on offshore wind and green hydrogen. This partnership is set to contribute up to 30GW of capacity to Masdar's global clean energy capacity target of 100GW by 2030.
Iberdrola, with a workforce of over 44,000 and assets more than EUR 160 billion, is the leader of the European Power Purchase Agreement (PPA) market, signing 1,250 MW of PPAs in 2024. The company is also on course to have nearly 5,000 MW of offshore wind capacity by the end of 2026.
Masdar, with a combined capacity of 51 GW in projects across over 40 countries, is expanding its European footprint following its acquisitions of Saeta Yield in Spain and Terna Energy in Greece.
The Baltic Eagle offshore wind farm, another joint venture between Masdar and Iberdrola, has recently been celebrated for its completion and full energization in the German Baltic Sea. Baltic Eagle will supply around 475,000 households with renewable energy while reducing carbon dioxide emissions by about 800,000 tons per year.
East Anglia Three will deliver enough clean energy to power 1.3 million British homes. Iberdrola posted revenues of nearly EUR 50 billion, net profit of EUR 5.6 billion, and EUR 10.3 billion in tax contributions in 2024.
This partnership between Masdar and Iberdrola is not only a significant step forward for clean energy in Europe but also a testament to the growing commitment towards a sustainable future. The joint investments are expected to support thousands of jobs, provide clean energy to millions of homes, and significantly reduce carbon emissions.
