Abu Dhabi clean energy company Masdar signed an agreement with Malaysia’s Petronas to explore renewable energy opportunities in Asia and other countries.
As part of the deal, the two companies will focus on the development of utility-scale ground-mounted and floating solar projects as well as offshore wind projects in Malaysia, Vietnam and Taiwan, Masdar said in a statement on Thursday.
“This agreement marks an important step on Masdar’s journey to expand our presence in the Asian market, where we see tremendous potential given the region’s rapid economic growth and potential renewable energy resources,” Mohamed Jameel Al Ramahi, chief executive of Masdar, said.
Petronas currently has over 1 gigawatts of solar capacity in operation and under development for commercial and industrial customers in India and South-East Asia. The company is also undertaking a 90-megawatt capacity solar rooftop project in Malaysia.
Masdar, fully owned by Mubadala Investment Company, is a major player in the renewable energy sector across the globe. It currently operates in more than 30 countries with a total renewable energy capacity of 10.7GW representing a combined investment of approximately $19.9 billion. Last year, Masdar widened its footprint in the US after acquiring stakes in eight projects being developed by EDF Renewables North America.
The agreement “with Masdar marks another milestone in our existing partnership with Mubadala, which will now include a focus on renewables and green hydrogen”, Petronas president and group chief executive Tengku Muhammad Taufik Tengku Aziz, said.
Malaysian state oil producer Petronas and Abu Dhabi National Oil Company agreed this week to collaborate in the exploration, development and production of conventional and unconventional hydrocarbons in Abu Dhabi.
Masdar is expanding in Asia and invested $100 million in Indonesia for the development of the country’s first floating solar photovoltaic plant last year. The 145MW project is being developed in the Cirata reservoir in West Java.
“We look forward to collaborating with Petronas … to meet the growing demand for renewable energy solutions across the region,” Mr Al Ramahi, added.
The company plans to double its capacity over the next five years with new projects in different countries including Israel.
Renewable energy carriers and building zero-carbon supply chains represent a $500bn opportunity as economies continue to decarbonise, according to Abu Dhabi-based Irena.
Decarbonisation of the global energy system away from fossil fuels to renewables could generate $98 trillion in cumulative growth between now and 2050, adding an extra 2.4 per cent to GDP, according to the agency.
Adnoc and Petronas will also expand the scope of their co-operation to the downstream sector. The Malaysian firm will look at opportunities to invest in the Ruwais chemicals hub, fuel bunkering and the use of liquefied natural gas as a cleaner fuel for use in vessels.