MADRID/DUBAI (Reuters) -Spanish utility Iberdrola (BME:IBE) has sold a 49% stake in its 476 megawatt (MW) offshore wind farm in German waters in the Baltic Sea to Abu Dhabi's Masdar for about 375 million euros ($414.5 million), it said on Wednesday.
Iberdrola said that the deal pegged the total value of the Baltic Eagle project - which is set to have 50 wind turbines off Germany's northeastern coast once they are built and ready to operate - at about 1.6 billion euros. Masdar will contribute proportionally to its stake to develop the project.
The Spanish power giant "will control and manage the asset, providing operation and maintenance services and other corporate services" by retaining a 51% majority stake, it added.
The deal is part of Iberdrola's strategy to sell stakes in its wind developments to raise cash to finance its 150 billion-euro 2020-2030 investment plan, mostly devoted to renewables and power grids.
Masdar is a renewable energy company that is 43% owned by Abu Dhabi energy and utility firm Taqa, 33% by sovereign wealth fund Mubadala and 24% by state oil giant ADNOC.
Reuters reported last week that Masdar was eyeing expansion in Europe, the U.S. and elsewhere.
The wind farm is expected to have annual production of 1.9 terawatt-hours, or enough for the electricity needs of 475,000 homes, which Masdar said in a statement would save 800,000 tons of carbon dioxide from being released into the atmosphere.
"This a major project that will help to drive forward green energy security in Europe, reduce emissions for homes and businesses, and support thousands of highly skilled jobs," Iberdrola Executive Chairman Ignacio Galan said.
It is expected to begin operations at the end of 2024 and its full capacity has already been sold via long-term contracts, Masdar added.
"As the UAE looks ahead to hosting COP28, partnerships such as this show how we can hold back emissions, without holding back progress," Sultan al-Jaber, Masdar chairman and incoming president of the COP28 climate summit, said in the statement.
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