15 years on, the global influence of Abu Dhabi’s Masdar

This month, the company is celebrating 15 years of pioneering clean energy solutions, technology innovation and sustainable urban development in the UAE and across the world.

Today, Masdar is active in more than 30 countries, and while Covid-19 has disrupted markets around the world, the company continues to expand.

The total capacity of the renewable energy projects that Masdar is involved in has more than doubled over the past two years, from 4 gigawatts (GW) to more than 11GW – enough electricity to power more than 4 million homes – with a combined value of $19.9 billion.

Targets to double total capacity again have already been set by Masdar’s ambitious management team.

To mark its 15-year milestone, Masdar has also launched For A Sustainable Future, a campaign that showcases its progressive and continuous climate impact journey.

Since it was established in 2006, Masdar’s mandate has been to support the UAE’s leadership role in the global energy sector, while also supporting the nation’s economic diversification, and climate action agenda.

“Guided by the future-focused vision of our nation’s leadership to develop a resilient and sustainable economy, Masdar continues to build on its strong history of driving innovative renewable energy solutions for the UAE and around the world,” said Mohamed Jameel Al Ramahi (pictured above), CEO of Masdar in comments published by state news agency WAM.

“Today we are leaders in clean energy and sustainable real estate and proudly celebrate 15 years of continuous climate action.”

He said Masdar has contributed to reinforcing Abu Dhabi’s position at the forefront of clean technology for climate change mitigation.

In the UAE, the company has made a significant contribution to the country’s renewable energy targets, playing a key role in expanding the country’s portfolio 400 percent in the last decade – including developing some of the world’s largest projects, such as the Al Dhafra project in Abu Dhabi, alongside partners like TAQA and EDF Renewables.

Masdar is also looking to technologies of the future – including hydrogen.

Indeed, Masdar was exploring hydrogen as a clean energy source as far back as 2008. Fast forward to 2021 and Masdar has committed to developing a hydrogen demonstrator in Masdar City (pictured above), a global green print for sustainable real estate.

A first of its kind for the region, the demonstrator plant will be jointly developed in partnership with Abu Dhabi’s Department of Energy, Etihad Airways, Lufthansa Group, Khalifa University of Science and Technology, Siemens Energy and Marubeni Corporation to produce green hydrogen and sustainable fuel/e-kerosene production.

Al Ramahi said: “Green hydrogen has the potential to become the primary fuel for a clean economy in the future and will be key in changing carbon removal strategies as the world looks to achieve climate-related goals and build a more sustainable future.”

For Masdar, sustainability is also about more than just advancing clean energy. In 2008, the company broke ground on Masdar City, Abu Dhabi’s flagship sustainable urban development which is spearheading the technology to realise greener and sustainable urban living.

When John Kerry, the US Special Presidential Envoy for Climate, visited the UAE recently, Masdar City was one of the first destinations on his itinerary.

Masdar City continues to attract new businesses with over 900 companies finding a home in the free zone and top firms like Siemens Energy setting up regional headquarters in the area.

As an incubator of innovation, Masdar City is also home to The Catalyst, a joint venture between Masdar and BP. Set up in Masdar City’s Technology Park, The Catalyst is the first start-up accelerator in the MENA region dedicated to sustainability.

Masdar City has one of the largest clusters of low carbon buildings in the world. All buildings are designed to reduce energy by at least 40 percent compared to local standards and reduce water consumption by at least 40 percent in accordance with local green building standards.

Masdar is also leveraging this sustainable development to launch the UAE’s first sustainable real estate investment trust – the first “green” REIT.

The Masdar Green REIT has been established at Abu Dhabi Global Market (ADGM) and offers an opportunity for investors through private placement to invest in a unique portfolio of stable, income-producing sustainable real estate assets.

Masdar has also announced projects in a number of new markets, including Southeast Asia, Central Asia, Australia, and the United States.

In Australia, Masdar acquired a 40 percent stake in the country’s second utility-scale waste-to-energy facility last year while in the US, the world’s second-largest renewables market, Masdar acquired a 50 percent stake in a 1.6 GW clean energy portfolio with EDF Renewables North America.

In Central Asia, Masdar is developing both solar and wind projects in countries including Uzbekistan and Azerbaijan while in southeast Asia, Masdar has led the development of the region’s biggest floating solar PV power plant.

Building on the historic Abraham Accords, Masdar also signed an agreement with EDF Renewables to explore renewable energy opportunities in Israel in support of the country’s clean-energy objectives.

Al Ramahi said: “The achievements of the company over the past 15 years are only the beginning, especially in light of the current challenges facing the world as well as the opportunities arising from increasing focus on sustainability. Masdar will continue leveraging the technological, engineering, commercial and other skillsets it has acquired to lead the sustainability sector for many years to come.”