Total of France (TotalEnergies) and Masdar of the United Arab Emirates have signed a binding agreement to jointly set up a US $2.2 billion joint venture, each holding 50% of the shares, with the core of integrating their land-based renewable energy businesses in nine Asian countries. In the press release, TotalEnergies identified the core goal of this cooperation, which is to achieve business integration and expansion.
the joint venture has locked 3GW of assets in operation and another 6GW of assets are in the in-depth development stage. it is expected to be fully put into operation by 2030. both parties will also inject assets of equivalent value into the platform to provide support for business promotion.
At a time when Asian power demand continues to rise, this cooperation is just the right time to combine the capital and expertise of both parties to provide renewable energy solutions at the scale and speed required by the market. After the completion of the transaction, the joint venture will also become the only platform for the two companies to develop, build, own and operate land-based photovoltaic, wind power and energy storage projects in 9 countries including Azerbaijan, Indonesia, and Japan.
However, the final conclusion of the agreement is subject to regulatory approval and the satisfaction of customary delivery conditions. The joint venture will be headquartered in Abu Dhabi Global Market (ADGM), with an initial staff of about 200 from both companies, and the management team will be announced in due course.
In fact, this is not the first time TotalEnergies and Masdar have worked together on the Green Hydrogen project to produce sustainable aviation fuel. The two companies also signed an action framework agreement with the decarbonization EPointZero of global investment platform 2PointZero to help expand access to clean energy in emerging markets and developing economies in Africa and Asia.
In addition, TotalEnergies has previously cooperated with Masdar and Siemens Energy to jointly promote the development of green hydrogen and sustainable aviation fuel production. The two sides have a deep foundation for cooperation in the field of clean energy.
Talking about the new joint venture project, Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, said: “Masdar is a concrete manifestation of the concept that the UAE has become a global energy leader with scale delivery, firm investment and long-term partnership. Not only are we the first to drive renewable energy deployment in Central Asia and the Caucasus, we are also expanding our portfolio in the most attractive growth markets in the Asia-Pacific region. This decade, Asia will be the core driver of global electricity demand growth, and this partnership with TotalEnergies will accelerate our growth in the region and provide our partners and customers with more competitive and reliable energy solutions.”
TotalEnergies Chairman and CEO Patrick Pouyann said: “We are delighted to have signed this agreement with Masdar to create an industry leader in Asia with two leading renewable energy companies. By combining the strengths of both parties, we will be able to occupy a more important position in these markets and create value far beyond what can be achieved by operating alone. This agreement is fully aligned with the renewable energy strategy of our integrated power business and will further deepen the long-term relationship between the UAE and TotalEnergies.” Mohamed Jameel Al Ramahi, Chief Executive Officer of
Masdar, added: “This joint venture agreement will further strengthen Abu Dhabi’s position as a leading global energy hub, integrating the expertise of Masdar and TotalEnergies to drive renewable energy deployment in Asia. For Masdar, this partnership not only strengthens and enriches our portfolio, but also taps into new opportunities in high-growth markets, while accelerating growth in existing markets and creating more value with the help of ideologically aligned partners.”
