UAE, US renewable energy partnership drives global clean energy transition

The strategic energy partnership between the United Arab Emirates and the United States continues to reinforce both countries' shared vision for a sustainable future. This collaboration is marked by significant joint investments in clean and renewable energy technologies, aimed at bolstering global energy security and supporting emerging economies.

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A key initiative is the UAE-US Partnership for Accelerating Clean Energy (PACE), launched in November 2022, which seeks to mobilise $IOO billion in financing and investment to deploy IOOGW of clean energy by 2035.

As part of this effort, the two countries announced in January 2023 a $20 billion allocation to develop 15GW of clean energy projects in the United States by 2035. The initiative is being led by Masdar in partnership with private-sector investors from the United States.

Abu Dhabi National Oil Company (Adnoc) also joined the clean energy push by acquiring a 35 per cent equity stake in ExxonMobil's blue hydrogen project in Texas, which will be capable of producing up to I billion cubic feet daily of blue hydrogen, with about 98 per cent of carbon dioxide removed, and more than I million tonnes of low-carbon ammonia per year.

In support of innovation, the Abu Dhabi Department of Energy signed agreements with the University of Arizona and the International Renewable Energy Agency (IRENA) to explore advanced clean energy technologies, including solar power in space and climate acceleration tools.

The United States remains a core market for Masdar, which is targeting a clean energy portfolio of 25GW in the United States within a decade. Masdar's portfolio in the US comprises wind, solar and battery storage projects in California, Texas, New York, and New Mexico, reflecting the company's long-term commitment to transforming energy systems.