Mubadala invests in offshore wind farm developer Skyborn as it boosts renewables portfolio

The sovereign wealth fund also picked up a stake in a US offshore wind project

A wind turbine at an offshore wind farm in the US. Global offshore wind investments are set to surge this decade as countries aim for carbon neutrality. AP

Top offshore wind farm developer Skyborn Renewables has been acquired by a group of investors that include Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and Global Infrastructure Partners.

The deal will expand Mubadala's presence in Europe and the Asia-Pacific region at a time when it is pushing to increase its exposure to the booming renewable energy market, the wealth fund said on Wednesday.

Skyborn Renewables, which is based in Bremen, Germany, has developed more than seven gigawatts of offshore wind capacity so far and has projects in Germany, France, and Taiwan.

The group has offshore wind projects with a capacity of 30 gigawatts at various stages of development.

Mubadala will also buy a part of GIP’s 50 per cent stake in the Bluepoint Wind project, which is located near the coast of New Jersey and New York. Upon completion, the wind farm will be able to power about 900,000 residential homes.

The US plans to install about 30 gigawatts of offshore wind capacity by 2030 along the country’s coastlines and several states.

Global offshore wind investment is set to increase this decade, with capital expenditure for projects in the sector expected to more than double to $102 billion in 2030, according to Rystad Energy.

The push to increase the number of projects and investments from $46bn in 2021 comes at a time when nations around the world are seeking to switch to cleaner sources of energy to meet their carbon neutrality goals.

“Offshore wind is one of the most attractive and fastest-growing segments within renewables, with the sector expected to grow tenfold in the next decade,” said Khaled Al Qubaisi, chief executive of real estate and infrastructure investments at Mubadala.

“We at Mubadala are proud to be a part of a consortium that is playing a leading role in addressing the global challenges of the climate crisis and energy security.”

In April, the fund was part of a BlackRock Real Assets-led consortium that agreed to invest $525 million in the renewable energy arm of India’s Tata Power.

Tata Power Renewable Energy, which will play a key part in India’s energy transition, plans to expand its current clean energy capacity to more than 20 gigawatts, from the current 4.9 gigawatts, over the next five years.