Abu Dhabi National Energy Company (TAQA) and Abu Dhabi National Oil Company (Adnoc) have announced to buy Mubadala Investment Company’s stakes in Abu Dhabi Future Energy Company (Masdar).

The transaction puts a value for the new Masdar joint ventures at approximately Dh7 billion ($1.9 billion) on a 100 per cent equity basis.

The binding agreements will see TAQA acquire a 43 per cent controlling stake in Masdar’s renewables business with Mubadala retaining a 33 per cent interest, and Adnoc owning the remaining 24 per cent interest.

As part of the deal, TAQA will contribute its rights to a minimum 40 per cent share in future Abu Dhabi renewable projects and green hydrogen projects.

The partnership sets out to create a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of TAQA, Mubadala and Adnoc under the Masdar brand.

Jasim Husain Thabet, TAQA Group CEO and Managing Director, said: "The signing of binding agreements for this transaction demonstrates how TAQA has firmly established itself as a low carbon power and water champion."

At the completion of this transaction TAQA will exceed its 2030 targets of having more than 30 per cent of its generation capacity from renewable energy and will accelerate our future growth plans as the demand for renewable power and green hydrogen projects significantly increase.

"Working closely with Mubadala and Adnoc, we will transform the energy landscape through Masdar, grounded in collaboration and great ambition to drive forward the UAE’s Net-Zero by 2050 Strategic Initiative," Thabet said.

Musabbeh Al Kaabi, CEO, UAE Investments of Mubadala Investment Company, commented: "This milestone is a clear testament of Mubadala’s commitment to realising the UAE’s long-term sustainability ambitions. We established Masdar 16 years ago with the foresight to diversify the UAE’s energy mix and advance the global energy transition."