TotalEnergies and Masdar have signed a binding agreement to establish a $2.2 billion joint venture aimed at expanding renewable energy capacity in nine countries across Asia.
The partnership, designed as a 50/50 joint venture, will bring together ‘capital and expertise to deliver renewable energy at the scale and speed required’, TotalEnergies said in a statement. It will focus on the development of solar, wind, and battery projects in markets including Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea, and Uzbekistan.
The joint venture will have a portfolio capacity of 3 GW of operational assets and 6 GW of assets in advanced development, which are expected to be operational by the end of the decade.
‘Major players’
“We are delighted with the signing of this agreement with Masdar, which brings together two major renewable players to build a renewable champion in Asia,” commented Patrick Pouyanné, chairman and CEO of TotalEnergies.
“It will allow us to combine the strengths of our two companies to secure significant positions in these markets and create more value than if we were acting alone. This agreement is fully in line with the renewable energy strategy of our Integrated Power business. We are also pleased to further deepen, in this area, the long-standing relationship between the United Arab Emirates and TotalEnergies.”
The joint venture will be headquartered in Abu Dhabi Global Market (ADGM) and staffed by around 200 employees from TotalEnergies and Masdar. The management team of the joint venture will be announced at a future date.
Renewable energy deployment
As Mohamed Jameel Al Ramahi, CEO of Masdar, added, the agreement “reinforces Abu Dhabi’s status as a global centre for energy leadership, combining the expertise of Masdar and TotalEnergies to drive renewable energy deployment across Asia. For Masdar, this JV strengthens and diversifies our portfolio, unlocking new opportunities in attractive, high-growth markets, while bringing in a like-minded partner to accelerate growth and deliver additional value in our existing markets.”
Masdar, also known as Abu Dhabi Future Energy Company, was established in 2006, and boasts a portfolio encompassing more than 65 GW over six continents. Read more here.
