TotalEnergies and Masdar create a joint venture valued at $2,2 billion

TotalEnergies and its Emirati partner Masdar announced a few days ago the signing of an agreement to create a joint venture valued at $2,2 billion, which will merge their onshore renewable energy activities in 9 Asian countries.

This joint venture will lead "the development, construction, ownership and operation of solar and onshore wind and battery storage projects in Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, Philippines, Singapore, South Korea and Uzbekistan", the two groups said in a statement.

It will hold "3 gigawatt (GW) of assets in operation or under construction and 6 GW of assets in advanced development, which are expected to be commissioned by 2030," he adds.

TotalEnergies and Masdar will own the joint venture equally (50/50) and will contribute assets of "comparable value". The press release specifies that this joint venture, headquartered in Abu Dhabi, will have approximately 200 employees from both groups.

TotalEnergies CEO Patrick Pouyanné welcomed the creation of a "renewables champion in Asia" which will "create more value" than if TotalEnergies remained alone.

Sultan Al Jaber, Chairman of Masdar and Minister of Industry of the United Arab Emirates, welcomed a partnership that will "accelerate" development in Asia, "the main driver of global electricity demand growth this decade".

The United Arab Emirates are among the world's leading oil exporters, but they are investing heavily in renewable energy, both domestically and abroad, through the company Masdar.

"This joint venture reinforces Abu Dhabi's status as a global hub of energy leadership," said Mohamed Jameel Al Ramahi, managing director of the Emirati company.

In January, the French group Engie announced with Masdar the Khazna solar project in the UAE, with a capacity of 1,5 GW, one of the largest photovoltaic parks in the region.