Could you tell us about the relationship between Masdar and the Mubadala Investment Company, and provide some highlights from the company’s history?
Masdar, also known as the Abu Dhabi Future Energy Company, was first established in 2006. Since our inception, we have been wholly owned by Mubadala Investment Company, and we are currently preparing to welcome ADNOC and TAQA as they join Mubadala as shareholders in Masdar.
Our founding mission was to invest capital into the field of renewable energy, clean technologies, and sustainable urban development. Over the past 16 years, we have become active in 40 countries and are investing jointly with our partners, mainly in renewable energy technologies. Our focus remains within solar PVs, and offshore and onshore wind. Masdar has also deployed capital into sustainable urban communities, such as Masdar City, our flagship project here in the United Arab Emirates, in our home city of Abu Dhabi.
What are your growth targets for Masdar on a global scale?
Masdar today has a gross global capacity of around 15 GW of renewable energy projects, with aims to reach 100 GW by 2030 and eventually 200 GW.
The current 15 GW are either operational, under construction, or committed, and will soon begin construction. Our country’s leadership’s vision to decarbonize and to diversify our energy mix has triggered much momentum. We are a young country, but when it comes to climate issues, we have led the narrative within our region as the first country to commit to renewable energy targets in 2006, to sign the Paris agreement, and to implement net-zero targets. From day one, Masdar played a crucial role in developing renewable energy activities in the country, and beyond. We are now one of the fastest growing renewable energy companies in the world.
Masdar has worked closely with Central Asia, Eastern Europe, and Africa, to help create renewable energy markets in emerging economies.
We have also entered established markets like the US and the UK and are playing a key role in those countries’ clean energy economies.
Is Masdar placing its confidence entirely in wind and solar, or are you also interested in other technologies?
We are also investing in other clean energy technologies, such as green hydrogen, where we see clear synergies between renewable energy generation, and the ability to produce large-scale renewable energy at a very competitive price. Most importantly, we seek to assess future technologies that are currently being developed, which could increase efficiencies and reduce costs. Masdar also built the first commercial carbon capture, utilization and storage facility in the region; with 800,000 tons of carbon being captured from an industrial steel facility here in Abu Dhabi and are looking to develop energy storage.
What is your vision for Masdar City moving forward?
Masdar City was launched in 2006 as a carbon neutral city, and back then, nobody really understood what we were trying to do. It was a steep learning curve, and we had to adapt. We needed a competitive energy-efficient source, as well as water, since we are in the desert. At the time, 100% of our water needs were generated through sea water desalination, which requires a tremendous amount of energy, reliant on fossil fuels. When we decided to diversify our energy mix, our government agreed that we needed to start constructing buildings that required less electricity and water. We also had to take into account sustainable transportation solutions, which is something that we pioneered, and have developed the region’s first autonomous shuttle service and the world’s first Personal Rapid Transport (PRT) system.
Masdar City is a green print for how we can potentially scale up to become more efficient as a country and use our knowledge around the world. The city is one of the most sustainable urban communities in the world, and includes a free investment zone, which basically allows 100% foreign ownership, including NGOs, small to large corporates, research, and educational institutions, such as Masdar Institute, which is part of the Khalifa University of Science and Technology. As the only planned and approved research and development cluster in Abu Dhabi, these companies are helping to develop innovative clean technologies that help build a more sustainable future.
How do you see the landscape in the region evolving when it comes to renewables?
The Middle East is blessed with abundant natural resources, particularly fossil fuels, which have helped to achieve economic prosperity. However, we also need to be conscious that this resource is ultimately unsustainable. I quote our president when he highlighted at a Government Summit in Abu Dhabi that “we should celebrate when we export our last barrel of oil”. And to celebrate, we need to invest for the future. Our region is also blessed by other resources — for example, it has one of the best solar radiation levels in the world. We have now built one of the largest solar parks globally and are constructing the largest single-site solar plant in the world, which will have production capacity of two gigawatts; enough to supply energy to almost 160,000 people in the United Arab Emirates. The region has huge potential; and when you have the foresight, the leadership, the institutions, and the right partnerships, I believe that we will be able to deliver on our net zero commitments faster than other regions.
Our vision for Masdar has not changed since inception. We will continue investing in renewable energy, developing sustainable solutions for all, and remain committed to decarbonization, whilst supporting our partners globally. We are committed to a sustainable future for all of us.
