Month: May 2023

Abu Dhabi’s clean energy company will also develop 500 megawatt-hours of battery storage at sites across the country.

Abu Dhabi’s clean energy company Masdar has signed a joint development agreement with Uzbekistan’s Ministry of Energy and Ministry of Investments, Industry and Trade to develop more than 2 gigawatts of solar and wind projects in the Central Asian country.

The company will also develop 500 megawatt hours of battery energy storage at multiple sites across the country, Masdar said on Friday.

The deal is part of Uzbekistan’s push to generate 25 per cent of its energy from renewables, comprising 7 gigawatts of solar and 5 gigawatts of wind capacity by the end of the decade.

“The UAE is fully committed to supporting countries to decarbonise,” said Dr Sultan Al Jaber, Cop28 President-designate, UAE Minister of Industry and Advanced Technology and chairman of Masdar.

“Uzbekistan is a key strategic partner, and we continue to work together to deliver renewable energy projects that power homes and businesses, while crucially cutting emissions. The world needs to triple global renewable energy capacity by 2030 to reach the goals set out in the Paris Agreement.”

Investment in renewable energy technology globally hit a record of $1.3 trillion last year.

However, that figure must rise to about $5 trillion annually by 2030 to meet the key Paris accord target of limiting temperature increases to 1.5°C above pre-industrial levels, Abu Dhabi-based International Renewable Energy Agency said in its World Energy Transitions Outlook 2023 preview in March.

Renewable capacity must grow from about 3,000 gigawatts currently to more than 10,000 gigawatts in 2030, an average of 1,000 gigawatts annually, it said.

“As we prepare to host Cop28 in the UAE, we believe ambitious partnerships with countries like Uzbekistan are vital in helping to meet this target,” Dr Al Jaber said.

Masdar, which nearly doubled its clean energy capacity to 20 gigawatts in two years, has been active in Uzbekistan since 2019, with the 100-megawatt Nur Navoi solar project — the nation’s first successfully financed independent solar project. The plant has been operational since 2021.

The company’s growing portfolio in the country also includes the 500-megawatt capacity Zarafshan plant, the largest wind farm in Central Asia as well as three solar projects in Jizzakh, Samarkand and Sherabad, which have a combined capacity of about 900 megawatts.

Once fully operational, the planned projects will generate enough electricity to power over one million homes, while displacing around one million tonnes of carbon dioxide annually, according to Masdar.

The new agreement “marks an exciting new chapter in Masdar and Uzbekistan’s shared journey”, said Mohamed Al Ramahi, chief executive of Masdar.

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

The company, which is jointly owned by Adnoc, Mubadala Investment Company and Abu Dhabi National Energy Company, better known as Taqa, is targeting a renewable energy capacity of at least 100 gigawatts and an annual green hydrogen production capacity of up to one million tonnes by 2030.

Abu Dhabi investment arm received nearly $29bn in proceeds during the year by monetising assets at strong valuations as assets swelled to $276bn.

Mubadala Investment Company, Abu Dhabi’s strategic investment arm, said it invested Dh107 billion ($29.13 billion) last year across sectors and received proceeds of Dh106 billion ($29 billion) by monetising assets at strong valuations.

The investments were made in sectors including life sciences, renewable energy and digital infrastructure, in line with the company’s strategy to invest in industries shaping the future, Mubadala said on Friday.

Assets under management across the group stood at Dh1.01 trillion ($276 billion).

Growth was supported by a strong performance in real estate, infrastructure and alternative investments, including private equity and private credit, Mubadala said.

The company did not, however, disclose its total comprehensive income for 2022, but that figure stood at Dh122 billion in 2021.

“Despite global headwinds affecting financial markets and investor sentiment, we outperformed benchmarks, staying the course with our long-term strategy of investing in key markets and sectors,” said Khaldoon Al Mubarak, Mubadala’s managing director and group chief executive.

“Although the macroeconomic environment remains uncertain we are focused on investing for the long-term based on our convictions.”

He added that Mubadala sees significant investment potential in Asia in sectors including technology, digital infrastructure and energy transition.

The company “will continue its active monetisation programme to recycle capital into high-potential sectors and geographies”, Mr Al Mubarak said.

Mubadala, which invests on behalf of the Abu Dhabi government, is at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.

The sovereign fund’s investment portfolio spans six continents. It has interests in multiple sectors and asset classes, including aerospace, information and communications technology, semiconductors, metals and mining, renewable energy, oil and gas and petrochemicals.

“We continue to focus on our capital deployments in line with our strategy, supported by prudent management of our finances, underlining the strength of our business and investment approach,” said group chief financial officer Carlos Obeid.

Last year, Mubadala backed two of the 10 biggest deals in health care, investing alongside EQT in Envirotainer, a provider of cold chain solutions for the pharmaceuticals industry and, together with Warburg Pincus, in the $2.6 billion purchase of Informa Pharma Intelligence — a data and software company for clinical trials and drug development.

In renewable energy, Mubadala said it invested $525 million together with BlackRock Real Assets in Tata Power Renewables, one of the largest renewable energy companies in India, supporting the growth of Mubadala’s clean energy portfolio.

Along with co-investors including Global Infrastructure Partners Mubadala also acquired a 100 per cent interest in Skyborn Renewables, the world’s largest private offshore wind developer.

The investment included a stake in GIP’s 50 per cent interest in Bluepoint Wind, a 1.6 gigawatt project off the coast of New Jersey and New York.

Mubadala last year also invested in sectors providing stable financial returns, such as real estate and hard infrastructure, according to Mr Al Mubarak.

“We increased our exposure to other alternative investments, including private equity and private credit, to help weather the disruption to traditional asset classes,” he said.

This included starting to deploy capital into European real estate credit via a new joint venture with Ares, an alternative investment company.

A $2.1 billion private equity partnership transaction was also carried out by Mubadala’s wholly owned asset management subsidiary, Mubadala Capital, with France’s Ardian.

There was also a partnership with KKR to jointly invest across performing private credit opportunities in the Asia-Pacific region.

During the year, Mubadala invested heavily in digital infrastructure, with $350 million investment into Princeton Digital Group, a pan-Asia data centre company focused on expanding world-class data centre services to meet increasing demand across Asia. Mubadala also invested £800 million ($997.23 million) in CityFibre, the UK’s largest independent full-fibre platform.

Earlier this month, Mubadala said it was investing $500 million in US-based broadband and telecoms services company Brightspeed, alongside investment funds managed by affiliates of New York-listed Apollo Global Management.

Meanwhile, Mubadala’s proceeds in 2022 included the sale of a 24.9 per cent stake in Borealis, the Austrian market leader in base chemicals and fertilisers.

The group and global commodity trader Trafigura completed the sale of Minas de Aguas Tenidas (Matsa) for $1.87 billion.

Mubadala also sold its remaining shares in Glencore, it said.