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ADNOC and TAQA to acquire a combined 67% stake in Masdar at an enterprise value of ~$1.3 billion.

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  • Jun 21, 2022
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The deal consolidates TAQA Group, Mubadala, and ADNOC Group's renewable energy and green hydrogen activities under the Masdar (Abu Dhabi Future Energy Company) brand. TAQA will purchase a 43% controlling position in Masdar's renewables sector, while Mubadala retains 33% and ADNOC owns 24%. ADNOC will acquire a 43% controlling stake in Masdar's new green hydrogen JV, while Mubadala and TAQA will keep 33% and 24%, respectively. Further, as part of the deal - TAQA’s contribution in Masdar’s future renewable energy and green hydrogen projects will stand at a minimum of 40% of the assets’ share capital. The deal values Masdar at $1.9 billion on a 100% equity basis, or $1.27 billion for the 67% holding.

The partnership is the culmination of a Dec’21 plan to build a UAE-based clean energy platform that is proposed to have a renewable energy capacity of 23 GW and 50 GW by 2030. Masdar is the most active UAE-based renewable energy player and has been building a diversified portfolio of green hydrogen, onshore wind, utility-scale solar, and biofuels operations. In order to widen its regional presence, the company recently acquired a stake in a major green hydrogen project in the UK from BP.

Today’s agreement will enable the UAE to become a major supplier of green hydrogen and capture 25% of the global market. Due to extensive areas of land with high solar intensity and supporting infrastructure like ports, the UAE has the potential to become one of the world's cheapest green hydrogen markets around $2/kg. However, the country, along with others in the region, will compete with Australia, which has the same drivers for green hydrogen and is closer to the East-Asian market.

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