RWE has signed two Memoranda of Understanding in Abu Dhabi, one between RWE and ADNOC, and the other between RWE and Abu Dhabi Future Energy Company, aka Masdar. The latter is an agreement to jointly invest in battery energy storage systems in Germany. The ADNOC (Abu Dhabi National Oil Co) agreement confirms ‘Strategic Collaboration’ between ADNOC and RWE and sets out the framework to explore collaboration on LNG (liquefied natural gas) deliveries to Germany and other European markets, of up to 1 million tonnes per annum of LNG for up to 10 years. This corresponds to up to 12 cargoes of LNG and up to 1.4 billion cubic meters of natural gas per year.
Dr Markus Krebber, CEO of RWE AG: “Our plans build on a successful and long-lasting partnership. By establishing new LNG supply agreements, we are strengthening the security of supply for Germany and across Europe, while further diversifying RWE’s global LNG portfolio for the benefit of our customers. The MoU with Masdar reflects the importance RWE and Masdar place on flexible energy storage as a foundation for grid stability, security of supply, and the integration of renewable energy – core pillars of Germany’s climate neutrality and energy policy objectives.”
RWE and ADNOC have also agreed to explore collaboration on short-term LNG trading activities between their respective global LNG portfolios.
Under the MoU between RWE and Masdar, the companies will work together to identify and pursue investments in battery energy storage systems (BESS) projects in Germany. Masdar will explore investing by 2030 in existing BESS projects in the country that are owned by RWE, with a capacity of up to 1 gigawatt (GW). In addition, RWE and Masdar will assess the joint development of new BESS projects of up to 1 GW by 2035.
RWE’s partnership with Masdar began in 2008 with their co-investment in the London Array offshore wind farm. In January, the two companies were awarded Contracts for Difference for the Dogger Bank South offshore wind farms. Representing an £11 billion investment, DBS comprises two 1.5-GW projects, DBS East and DBS West, together forming one of the UK’s largest offshore wind projects currently under development.
