Abu Dhabi National Energy Company (TAQA) paid $1.02 billion in cash for its stake in Abu Dhabi Future Energy Company (Masdar), following an agreement to become a shareholder alongside Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company in the clean energy company.

TAQA said in a statement on Thursday that the transaction, which sets out to create a global clean energy powerhouse, will see it acquire a 43% controlling stake in Masdar’s renewables business with Mubadala retaining a 33% interest, and ADNOC owning the remaining 24%.

The partnership sets out to develop Masdar into a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of TAQA, Mubadala, and ADNOC under a refreshed single Masdar brand, it added.

The joint venture will make Masdar the exclusive vehicle for renewables and green hydrogen as the UAE pushes to reach its net-zero ambitions by mid-century. Masdar has set a target of growing to at least 100GW of renewable energy capacity globally by 2030.

“The largest share of this capacity will come from wind and solar technologies. Beyond its initial goals, the company aspires to develop in excess of 200 GW of renewable energy, reinforcing its position as a world leader in the renewable energy sector,” TAQA said in the statement.

In addition, Masdar’s new green hydrogen business will rapidly scale up and target an annual green hydrogen production capacity of up to 1 million tonnes by 2030, equivalent to saving more than six million tons of CO2 emissions.

With the completion of the transaction, a new board of directors has been appointed for Masdar’s renewable business with Dr. Sultan Ahmed Al Jaber, who is Minister of Industry and Advanced Technology, has been reappointed as chairman. Al Jaber is also Managing Director and Group CEO of ADNOC.