Abu Dhabi renewable energy company Masdar signed two agreements to develop 4,000-megawatts renewable energy and green hydrogen projects in Azerbaijan, with options for developing projects with 6,000 magawatts capacity in the second phase.
The deal is the biggest such agreement in Azerbaija, the company said in a statement on Sunday.
The first agreement covers the development of onshore wind and solar photovoltaic (PV) projects with 1,000 megawatts of capacity each. The second agreement involves offshore wind and green hydrogen projects with a capacity of 2,000 megawatts.
The clean energy projects "demonstrate the valuable economic opportunities of the energy transition and will contribute to the energy diversification and energy security of Azerbaijan," Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and chairman of Masdar, said.
The announcement also "underscores the UAE and Masdar’s position as a global leader in renewable energy, as we progress our strategy toward a portfolio of at least 100 gigawatts globally”, he added.
Masdar, which currently operates in more than 30 countries with a total investment of about $20 billion, aims to be a clean energy powerhouse. Abu Dhabi National Oil Company dnoc and Taqa are shareholders in the company alongside Mubadala Investment Company.
Last year, Masdar increased its global clean energy portfolio capacity by 40 per cent. In 2022, it has signed agreements to explore and develop renewable energy and green hydrogen projects with a combined capacity of more than 10 gigawatts.
Masdar's agreement with Azerbaijan for onshore wind and solar projects includes measures to strengthen the network and implement processes for the export of electricity, the statement said.
The second agreement includes measures to create wind power for production and export purposes, decarbonisation, hydrogen production and export, it added.
"These 4,000 magawatt solar, wind and green hydrogen projects, being the largest renewable energy production capacity in the region and in our energy history, provide ample opportunities for the development of Azerbaijan as a green growth country, green energy producer and exporter, as well as allow for involving multibillion-dollar green investment," Parviz Shahbazov, the country's Minister of Energy, said.
Masdar also signed an initial agreement with State Oil Company of Azerbaijan Republic (SOCAR) for the joint development of renewable energy sources.
In March, Masdar broke ground at the site of a $200 million solar power plant that will be built in Azerbaijan's capital. The 230-megawatt Garadagh plant in Baku is the country’s first foreign investment independent solar power project and is expected to start commercial operations in 2023.
It will help to generate enough electricity annually to meet the needs of more than 110,000 homes and will reduce emissions by more than 200,000 tonnes a year, while also creating jobs, the statement said.
