Mubadala Energy and Masdar to explore opportunities in decarbonisation

The companies will team up in areas such as energy efficiency solutions for oil and gas assets

Masdar chief executive Mohamed Al Ramahi and Mubadala Energy chief executive Mansoor Al Hamed sign the agreement in the presence of Dr Bakheet Al Khatheeri, chief executive of the UAE Investments PlatShow more

Mubadala Energy, the oil and gas unit of Abu Dhabi’s Mubadala Investment Company, and Masdar have signed an agreement to explore opportunities related to decarbonisation and energy transition initiatives.

The partnership will primarily focus on the Mena region and South-East Asia, while also exploring “other regions of mutual interest”, the companies said on Monday.

The partnership will include “synergistic” areas such as decarbonisation and energy efficiency solutions for oil and gas assets, joint investments in new energy projects and collaboration on emissions management initiatives, they said.

“Energy transition and decarbonisation are key drivers shaping the global economy,” said Bakheet Al Katheeri, chief executive of the UAE investments platform at Mubadala Investment Company.

“By bringing together two of Abu Dhabi’s leading international energy champions to leverage their deep expertise, we are creating a catalyst for innovation.

“I’m confident this collaboration will accelerate solutions to complex challenges and create opportunities for strategic investment.”

Established by Mubadala in 2006, Masdar has taken a leadership role in the global clean energy sector and has also helped to drive the nation’s economic diversification and climate action agenda.

It is currently active in more than 40 countries and has invested or committed to invest in projects worth more than $30 billion.

In May, the company said it had almost doubled its clean energy capacity and carbon dioxide displacement in two years.

Masdar grew its renewable energy capacity to 20 gigawatts in 2022, producing 18,000 gigawatt hours of clean energy and reducing carbon dioxide emissions by 10 million tonnes.

“Masdar believes that energy sector investments must support scalable clean energy alternatives, new solutions for hard-to-abate industries and more efficient use of natural resources, to mitigate climate change while ensuring a sustainable energy supply,” said Masdar chief executive Mohamed Al Ramahi.

The UAE is investing heavily in clean energy projects and has announced several initiatives as it seeks to reach net-zero emissions by 2050.

The country is developing new clean energy projects such as the Barakah nuclear plant, a two-gigawatt solar plant in Abu Dhabi's Al Dhafra region and the five-gigawatt Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

This month, the UAE Cabinet also approved the updated version of the UAE Energy Strategy 2050 and the development of the National Hydrogen Strategy.

Under the updated objectives of the UAE Energy Strategy 2050, the Arab world’s second-largest economy will invest Dh200 billion ($54 billion) by 2030 to ensure energy demand is met while sustaining economic growth.

“Aligned with the UAE’s net-zero ambitions, we continue to action a clear strategy to recalibrate our business and play a more proactive role in supporting the energy transition drive towards lower carbon energy,” said Mansoor Al Hamed, chief executive of Mubadala Energy.

“This means we are doubling down on gas across our value chain, exploring investments in new energy sectors such as blue hydrogen and carbon capture, utilisation and storage, and looking at other technological levers to decarbonise operations,” Mr Al Hamed said.