Abu Dhabi-based renewable energy company Masdar and Spanish energy giant Iberdola have closed a joint investment deal for the 1.4GW East Anglia Three offshore wind farm in the UK.

Each company will hold a 50% stake in the €5.2bn ($6.1bn) wind farm and have joint governance. This agreement is part of their wider €15bn ($17.6bn) strategic alliance to scale offshore wind and green hydrogen projects across the UK, Germany, and the US.

The companies also confirmed a £3.5bn ($4.76bn) project financing deal with 24 international banks to fund the project, which is being developed by Iberdrola subsidiary ScottishPower.

The financing covers a substantial share of the project’s estimated cost, and neither company will require a consolidation of debt.

East Anglia Three, located some 69 km from the Suffolk coast, will be operational in late 2026. It will be one of the world’s two largest offshore wind farms, powering 1.3m homes.

“Landmark developments like Baltic Eagle and East Anglia Three are significant advances towards clean energy targets in major European nations. In a world where demand is surging due to exponential AI growth and the rise of emerging markets, projects such as these have never been more critical,” said Sultan Al Jaber, Masdar chairman.