Spanish energy and electricity provider Iberdrola and UAE-based clean energy-focused developer Masdar announced today a new agreement to co-invest €5.2 billion (USD$6.1 billion) in the 1.4 GW East Anglia THREE project, marking the largest offshore wind transaction of the decade.

The new agreement follows the launch by the companies of a partnership in 2023, aimed at investing up to €15 billion in offshore wind and green hydrogen projects in Germany, UK and the U.S.

Ignacio Galán, Iberdrola’s Executive Chairman, said:

“Today is an important landmark in our global partnership with Masdar. Partnerships such as this one are vital in accelerating energy security and competitiveness and working towards delivering ambitious climate targets.”

Under the new agreement, each company will have a 50% stake in and co-governance of the 1.4GW East Anglia THREE wind farm. Located off the Suffolk coast in the UK, East Anglia THREE will be one of the largest offshore wind farms globally, delivering enough clean energy to power 1.3 million British homes. The project is expected to comes into initial operation in Q4 2026. The project benefits from a 15-year CPI-linked Contract for Difference (CfD) awarded in the UK Government’s AR4 and AR6 auctions, as well as from a PPA with Amazon signed in 2024.

In addition to the new agreement, the companies announced that project financing for East Anglia THREE was signed for approximately €4.1 billion with 24 international banks, marking one of the largest ever such transactions, and covering a substantial part of the total costs of the project.

The companies also announced the completion of the first project under their strategic partnership, with the full energization of the 476 MW Baltic Eagle offshore wind farm in the German Baltic Sea.

HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar said:

“Offshore wind will play a crucial role in the global energy transformation, and landmark developments like Baltic Eagle and East Anglia THREE are significant advances towards clean energy targets in major European nations. With demand surging due to exponential AI growth and the rise of emerging markets, projects such as these have never been more critical.”