France's TotalEnergies and the UAE's Abu Dhabi Future Energy Company PJSC (Masdar) have entered a binding agreement to establish a $2.2 billion joint venture company with 50-50 ownership.
Under the terms of the agreement, which is currently subject to regulatory approvals and conditions, the joint venture company will merge their onshore renewables activities across nine Asian countries: Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea and Uzbekistan.
Once the transaction is closed, the joint venture company will act as both companies’ sole vehicle for developing, building, owning and operating solar, onshore wind and battery storage projects across these markets.
This will give the joint venture company a portfolio spanning 3 GW of operational assets and a pipeline of 6 GW expected to be operational by 2030. According to a statement published by TotalEnergies, each partner will contribute assets of comparable value.
The statement adds that the partnership will bring together the capital and expertise required to deliver renewable energy projects at both scale and speed.
“Asia will be the main driver of global electricity demand growth this decade,” commented Masdar chairman and UAE Minister of Industry and Advanced Technology, Sultan Al Jaber. “This collaboration will accelerate our progress across the continent, unlocking new opportunities to deliver the competitive, reliable energy solutions that our partners and customers need.”
The joint venture company is expected to be headquartered in the Abu Dhabi Global Market and staffed by around 200 employees from both TotalEnergies and Masdar. The two companies say a management team will be announced at a future date.
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