Abu Dhabi’s Masdar has forged an alliance with Spain’s Iberdrola to jointly invest in the ambitious 476-megawatt (MW) Baltic Eagle offshore wind farm situated in the German Baltic Sea.

In this strategic partnership, Iberdrola will maintain a controlling 51% stake in the project.

According to the terms of the deal, Baltic Eagle wind farm is valued at approximately €1.6 billion euros ($1.7 billion).

Iberdrola will control and manage the asset, providing operation and maintenance services and other corporate services.

Baltic Eagle will consist of 50 wind turbines built on monopile foundations, each with a unit capacity of 9.53 MW. Anticipated annual production is 1.9 terawatt-hours (TWh), enough clean energy to meet the electricity demands of 475,000 homes, saving 800,000 tons of CO2 being released into the atmosphere every year.

The wind farm, which is scheduled to come into initial operation at the end of 2024, has a minimum regulated tariff of €64.6/MWh for the first 20 years. In addition, 100% of its production has already been sold via long-term contracts.

In September 2022, the UAE and Germany signed an agreement to advance projects of joint interest on areas including energy security, decarbonisation and climate action.

The Energy Security and Industry Accelerator Agreement (ESIA) signed between the two countries involved plans for Masdar to explore offshore wind opportunities in the Baltic Sea to support Germany’s clean energy goals.

Iberdrola has 3,000 MW of offshore wind projects under construction or secured with zero seabed costs, it claims.