UAE, US renewable energy partnership rdrives global clean energy transition

The strategic energy partnership between the United Arab Emirates and the United States continues to reinforce both countries’ shared vision for a sustainable future. This collaboration is marked by significant joint investments in clean and renewable energy technologies, aimed at bolstering global energy security and supporting emerging economies.

A key initiative is the UAE-US Partnership for Accelerating Clean Energy (PACE), launched in November 2022, which seeks to mobilise $100 billion in financing and investment to deploy 100GW of clean energy by 2035.

As part of this effort, the two countries announced in January 2023 a $20 billion allocation to develop 15GW of clean energy projects in the United States by 2035. The initiative is being led by Masdar in partnership with private-sector investors from the United States.

Abu Dhabi National Oil Company (Adnoc) also joined the clean energy push by acquiring a 35 per cent equity stake in ExxonMobil’s blue hydrogen project in Texas, which will be capable of producing up to 1 billion cubic feet daily of blue hydrogen, with about 98 per cent of carbon dioxide removed, and more than 1 million tonnes of low-carbon ammonia per year.

In support of innovation, the Abu Dhabi Department of Energy signed agreements with the University of Arizona and the International Renewable Energy Agency (IRENA) to explore advanced clean energy technologies, including solar power in space and climate acceleration tools.

The United States remains a core market for Masdar, which is targeting a clean energy portfolio of 25GW in the United States within a decade. Masdar’s portfolio in the US comprises wind, solar and battery storage projects in California, Texas, New York, and New Mexico, reflecting the company’s long-term commitment to transforming energy systems.

Masdar’s US activities began in January 2019 with investments in the Rocksprings and Sterling wind farms in Texas and New Mexico. In 2020, it partnered with EDF Renewables North America across a portfolio of seven operational projects comprising 1.3GW of operating capacity.

In 2024, Masdar acquired a 50 per cent stake is one of the USA’s leading renewable power producer Terra-Gen, adding another 3.7GW of operating capacity, 6GW of under construction and advanced pipeline assets, as well as significant early stage pipeline. With this acquisition, Masdar’s gross operating portfolio in the US now exceeds 5.0GW.

Prior to the Terra-Gen acquisition, Masdar’s 1.3GW portfolio in the US consisted of four utility-scale wind projects in Texas and New Mexico and five solar projects in California. Two of the solar projects, Big Beau and Desert Harvest, include battery energy storage systems.

The acquisition of Terra-Gen added a gross operating portfolio of 3.7GW of wind, solar and battery storage projects, including 5.1GWh of energy storage facilities across 30 renewable power sites, predominantly in California and Texas. Terra-Gen is currently developing further 12GW of wind, solar and battery storage projects California, Texas and New York.

Ben Dietderich, Press Secretary and Chief Spokesperson at the US Department of Energy, said that the United States and the United Arab Emirates share a long-standing relationship in the energy sector and are committed to strengthening cooperation on global energy supply security and resilient infrastructure.

In statements to the Emirates News Agency (WAM), Dietderich said, “We see great potential to expand our collaboration and welcome the UAE’s growing investments in American energy projects,” adding that new partnerships would drive economic growth on both sides.

Dierdrech highlighted the trusted partnership between the two nations in the field of civil nuclear cooperation, stressing the department’s support for the continued safe and innovative deployment of nuclear technologies.

He also pointed to the increasing importance of building energy infrastructure to support emerging sectors such as data centres and artificial intelligence, and underscored the US commitment to advancing joint work in this area.

The energy relationship between the UAE and the United States, he emphasised, goes beyond trade and investment-encompassing knowledge exchange, institutional development, and the advancement of affordable, reliable, and secure energy in both countries.

In April, the UAE hosted the US Energy Secretary Chris Wright on his first official overseas visit since taking office, marking the UAE as the initial stop on his Middle East tour. During his two-day visit, Wright held high-level talks with senior government and industry leaders across the country.

Meanwhile, in the fourth quarter of 2024, the EU economy greenhouse gas emissions were estimated at 897 million tonnes of CO2-equivalents (CO2-eq), a 2.2% increase compared with the same quarter of 2023 (878 million tonnes of CO2-eq). The EU’s gross domestic product (GDP) registered a 1.5% increase in the fourth quarter of 2024, compared with the same quarter of 2023.

This information comes from data on quarterly estimates for greenhouse gas emissions by economic activity published by Eurostat today. Quarterly estimates of greenhouse gas emissions complement quarterly socio-economic data, such as GDP or employment.

WAM