RIYADH: TotalEnergies and the UAE’s Masdar have agreed to form a $2.2 billion joint venture to expand renewable energy capacity across Asia, targeting markets with rising electricity demand.
The 50-50 partnership will combine the companies’ existing onshore renewable assets into a single platform to develop, build, own and operate solar, wind and battery storage projects, according to a joint statement, according to a press release.
The move comes as Asia faces both surging electricity demand and an energy crisis triggered by the Iran war, forcing nations into desperate measures — from national emergencies and four-day work weeks to fuel rationing. The new joint venture could help ease the region’s crippling dependence on volatile fossil fuel imports.
The UAE’s Minister of Industry and Advanced Technology and Chairman of Masdar, Sultan Al-Jaber, highlighted his country’s track record of large-scale energy investment.
“Asia will be the main driver of global electricity demand growth this decade, and this collaboration with TotalEnergies will accelerate our progress across the continent,” he said.
The JV’s scope includes Azerbaijan, Indonesia, and Japan, as well as Kazakhstan, Malaysia, the Philippines.
Singapore, South Korea, and Uzbekistan are also covered by the venture.
The new entity is intended to serve as a core platform for both companies’ onshore renewables in the target markets, pooling capital and expertise to deliver projects at greater scale and speed.
It will launch with a combined portfolio of 3 gigawatts of operational assets and an additional 6 GW of projects in advanced development, which are expected to come online by 2030.
Each partner will contribute assets of comparable value to the venture.
TotalEnergies’ Chairman and CEO Patrick Pouyanne described the agreement as a way to build a “renewable champion in Asia,” noting that the partnership would secure stronger market positions than either company could achieve alone. He also pointed to the long-standing ties between the UAE and TotalEnergies.
Masdar CEO Mohamed Jameel Al-Ramahi added that the JV reinforces Abu Dhabi’s role as a global energy hub, diversifying Masdar’s portfolio while unlocking new opportunities in high-growth Asian markets.
The joint venture will be headquartered at Abu Dhabi Global Market and will be staffed by approximately 200 employees drawn from both parent companies. A management team for the new entity will be announced at a later date, the press release explained.
