ADNOC, Mubadala and Taqa take stakes in Masdar worth $1.9 billion

State-owned Abu Dhabi National Oil Company, Taqa and holding company Mubadala formalized the purchase of stakes in renewable energy company Masdar, as the UAE accelerates efforts to reach net-zero ambitions by the middle of the century.

The new Masdar joint venture is valued at $1.9 billion on a 100% equity basis, the companies said in a statement. UAE energy company Taqa will take a 43% in Masdar's renewables business, with Mubadala and ADNOC retaining 33% and 24% interests respectively.

The partners also took stakes in Masdar's green hydrogen business as they look for alternative energy sources to crude. ADNOC, which has been prioritizing investment in hydrogen will take a 43% stake in Masdar's green hydrogen business with Mubadala and Taqa retaining 33% and 24% interests respectively.

Taqa will also contribute to a minimum of 40% share in the Abu Dhabi emirate's renewables and green hydrogen projects.

The transaction is pending regulatory approvals, which are expected to take few months.

The new partnership will look at deploying more than 50 GW of capacity by 2030. This comes as the UAE, OPEC's third-largest producer, speeds up its plans for energy transition.

The UAE became the first country in the Arab world to announce plans to reach net-zero emissions by 2050 ahead of the UN Climate Change Conference in Glasgow in 2021. Saudi Arabia, the world's largest oil exporter, also announced plans to reach net-zero by 2060.

The UAE and Saudi Arabia have both announced targets that only apply to domestic emissions and do not impact carbon dioxide released from the burning of their crude and products overseas.