Masdar inks pact with Azerbaijan to develop clean energy projects
The Abu Dhabi Future Energy Company (Masdar) has signed two agreements with Ministry of Energy of Azerbaijan to develop clean and renewable energy projects with a total confirmed production capacity of 4,000 MW.
The second agreement includes measures to create wind power for production and export purposes, decarbonization, hydrogen production and export.
Masdar has obtained the right to develop an additional 6,000 MW as a second phase, bringing the total production capacity of these projects to 10,000 MW, which is the largest in the Caucasian country’s history.
The agreements include the implementation of onshore wind energy projects with a capacity of 1,000 MW, and others in the field of photovoltaic solar energy with a capacity of 1,000 MW, in addition to an agreement to develop integrated projects for offshore wind energy and green hydrogen with a capacity of 2,000 MW.
The agreements were signed by Parviz Shahbazov, Minister of Energy of Azerbaijan, and Fawaz Al Muharrami, Acting Executive Director of the Clean Energy Department at “Masdar”, during a special session held in the city of “Shusha” within the framework of Baku Energy Week.
Committed Towards Climate Action
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the Board of Directors of Masdar, said: “The renewable energy projects announced with a capacity of 4,000 MW contribute to consolidating the close relationship Between the UAE and Azerbaijan, and reflects the commitment of the two countries towards climate action. The implementation of these projects also contributes to providing valuable economic opportunities, as well as enhancing energy security and diversifying its sources in Azerbaijan.”
In his comments, Parviz Shahbazov said: “These solar, wind and green hydrogen projects, which have a total production capacity of 4,000 MW are the largest in the region and in the history of our energy projects, provide great opportunities for green development in Azerbaijan. And to be a green energy producing and exporting country.”
Masdar, in which Abu Dhabi National Oil Co. and UAE’s SWF Mubadala Investment Co. have stakes, increased its clean energy portfolio by 40% to about 15 GW in 2021 and is targeting 50 GW by 2030. Since the start of 2022, Masdar has signed agreements for renewable energy and green hydrogen projects with a combined capacity of more than 10 GW.
The UAE is targeting a 25% global market share of low-carbon hydrogen by 2030, has several hydrogen projects underway and is eyeing a large share of key export markets, including Japan, South Korea, and Germany, as well as other markets it identifies as being of “high potential” in Europe and East Asia.