RWE and Masdar form joint ventures to co-develop 3 GW Dogger Bank South offshore projects

RWE has signed an agreement with clean energy powerhouse Masdar as a new partner for its UK Dogger Bank South (DBS) offshore wind development projects. Both partners will continue to drive the delivery of these flagship projects. Closing of the transaction is subject to customary approvals and expected for the first quarter 2024.

The partners acknowledged the signing of the new partnership during a ceremony at COP28 in Dubai, marking a clear indication of the pair’s commitment to clean energy. Masdar will acquire a 49% stake in the landmark renewables projects while RWE, with a 51% share, will remain in charge of development, construction and operation throughout the life cycle of the projects. Masdar reimburses RWE for 49% of Devex incurred to date and will co-develop the project.

Located in shallow waters in the North Sea over 100 km from the east coast of England, DBS consists of two offshore wind projects, each 1.5 gigawatts (GW) in size. With an estimated combined installed capacity of 3 GW of new clean electricity, DBS has the potential to make a major contribution to the delivery of net zero in the UK once operational. The two projects are expected to be capable of powering up to 3 million typical UK homes with green electricity.

Masdar will join DBS at a key stage in the projects’ development, as they approach the end of consultation with stakeholders and communities ahead of submitting Development Consent Orders likely in Q2 2024. Construction could start as early as 2025, first 800 megawatts (MW) of electricity is planned to come online in 2029 with the aim to fully commission the projects by late 2031.

Markus Krebber, CEO of RWE AG: “We’re delighted to welcome Masdar onboard as our partner and co-investor in the delivery of our Dogger Bank South projects which, at 3 GW in size, make up RWE’s largest offshore wind development in the UK. With Masdar, we have a strong and renowned partner at our side who shares our ambition to further drive the growth of offshore wind energy. In combination with RWE’s many years of experience in the development, construction and operation of offshore wind farms, we are in an excellent position to strongly support the decarbonisation of the UK.”

RWE and Masdar already have an active partnership in global offshore wind. In September 2022, RWE and Masdar signed a Memorandum of Understanding to explore collaborations on offshore wind projects both in and outside Germany. Since 2008, Masdar has been a partner in the 630 MW London Array which, at the time of entering operation, became the world’s largest offshore wind farm.

Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi: “Masdar is very proud to be partnering with RWE to develop one of the world’s largest offshore wind farms. We are delighted to have come onboard at the early stages of this pioneering project, enabling us to leverage our shared passion and expertise in renewables. The UK is the world’s second largest offshore wind market and offers huge growth potential. Masdar has been active in the UK for more than a decade, pioneering world-class clean energy projects such as Dogger Bank South which demonstrate how innovation and collaboration can lead to a cleaner, greener future. As global leaders strive to form a unified and urgent plan to tackle the climate crisis at COP28, Masdar will continue to expand its wind energy portfolio as we target a total global capacity of 100 GW by 2030 in support of key climate goals.”

RWE entered into Agreements for Lease for the two DBS projects with The Crown Estate in January 2023. Combined, the projects will make an important contribution to the region’s and the UK’s economic growth. During construction, the DBS projects expect to support more than 2,000 full-time equivalent jobs, and a further 1,000 direct and indirect jobs during operations.