TotalEnergies and Masdar form renewable energy joint venture in Asia
Jakarta (ANTARA) - TotalEnergies, a French energy company, and Masdar, a clean energy company from the United Arab Emirates, have signed a binding agreement to form a joint venture (JV) valued at $2.2 billion, with each holding 50% ownership.
In an official statement received in Jakarta on Thursday, it was noted that the JV will combine the onshore renewable energy portfolios of both companies in nine Asian countries, namely Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea, and Uzbekistan.
The formation of the JV comes amid rising electricity demand in Asia, which is projected to be the main driver of global electricity demand growth in this decade.
Through this collaboration, both companies aim to accelerate the development of large-scale renewable energy projects.
Once the transaction is completed, the JV will serve as the primary vehicle for TotalEnergies and Masdar to develop, build, own, and operate onshore renewable energy projects, including solar, wind, and battery energy storage in those nine countries.
In terms of portfolio, the JV will have a generation capacity of 3 gigawatts (GW) from operational assets, as well as 6 GW of projects in advanced development stages targeted to be operational by 2030.
Both parties will contribute assets of comparable value to the JV.
Masdar Chairman and UAE Minister of Industry and Advanced Technology Sultan Al Jaber stated that Asia will become the centre of global electricity demand growth, so this collaboration is expected to accelerate clean energy expansion in the region.
“Collaboration with TotalEnergies will accelerate our steps in Asia and open new opportunities to provide competitive and reliable energy solutions,” said Al Jaber.
Meanwhile, TotalEnergies Chairman and CEO Patrick Pouyanné said the partnership will strengthen both companies’ positions in the Asian renewable energy market.
“This agreement allows us to combine strengths to create greater value than if we operated independently,” he said.
Masdar CEO Mohamed Jameel Al Ramahi added that the JV will also strengthen Abu Dhabi’s position as a global energy centre, while expanding Masdar’s portfolio in high-growth markets.
The JV will be headquartered in the Abu Dhabi Global Market (ADGM) and will be staffed by around 200 employees from both companies. The management structure will be announced later.