Iberdrola has signed an agreement with UAE-based renewable energy company Masdar to divest a 49% stake in the 476MW Baltic Eagle offshore wind farm located in the German Baltic Sea to the latter.

Under the terms of the deal, the offshore wind facility is valued at nearly €1.6bn.

Iberdrola will control and manage the German offshore wind farm with a majority stake of 51%.

The Spanish utility company will also provide operation and maintenance services as well as other corporate services to the Baltic Eagle project.

Expected to begin initial operations by the end of 2024, the Baltic Eagle offshore wind farm will produce 1.9TWh of electricity to power 475,000 households with clean energy. It is also estimated to offset 800,000 tonnes of carbon dioxide emissions per annum.

The Baltic Eagle offshore wind project will feature 50 wind turbines built on monopile foundations. Each of the turbines will have a capacity of 9.53MW.

Iberdrola executive chairman Ignacio Galan said: “Delivering the clean energy that the world needs requires companies with vision and commitment that are willing to make major investments in new infrastructure.

“Masdar brings all of these qualities to Baltic Eagle. 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.”

Through the transaction, both companies aim to bolster their partnership to seek additional investment opportunities in renewable energy across a variety of technologies and regions.

Masdar is jointly owned by Abu Dhabi National Oil (ADNOC), Mubadala Investment, and Abu Dhabi National Energy (TAQA).

UAE Minister of Industry and Advanced Technology, Masdar chairman and COP28 President-Designate Sultan Al Jaber said: “This landmark agreement between Masdar and Iberdrola will harness Germany’s abundant wind power in the Baltic Sea and bring electricity to nearly half a million homes, while cutting emissions.”

Iberdrola commenced construction of the Baltic Eagle offshore wind farm in April 2022, following the receipt of approvals from the German Federal Maritime and Hydrographic Agency (BSH).