UAE-based investor Masdar and German renewable energy infrastructure asset manager, Luxcara, have signed a memorandum of understanding (MoU) to explore joint investment of more than EUR 5 billion in offshore wind, battery storage and potentially other technologies in Germany and beyond.
The MoU is subject to the companies reaching definitive agreements and meeting customary conditions and regulatory approvals.
According to Masdar and Luxcara, their proposed partnership would cover two increasingly important components of Europe’s future energy system: battery storage, which will play a critical role in strengthening grid flexibility and reliability, and offshore wind, which provides significant volumes of domestically generated power.
Luxcara is developing the 1.5 GW Waterekke and the 300 MW Waterkant offshore wind farms in Germany.
In Germany, Masdar owns the Baltic Eagle offshore wind farm together with Iberdrola, with which it entered a EUR 15 billion strategic partnership in December 2023 and last year invested in the UK’s East Anglia Three offshore wind farm.
The UAE investor also holds stakes in the Dogger Bank South projects with RWE, Dudgeon and Dudgeon Extension with Equinor and China Resources, and the London Array offshore wind farm with RWE, CDPQ and Greencoat.