Mubadala Energy and the Abu Dhabi Future Energy Company (Masdar) have signed an agreement to explore cooperation opportunities relating to decarbonization and energy transition initiatives, the company said in a statement.

Under the partnership, both parties will collaborate on technical solutions to decarbonize or improve the energy efficiency of upstream oil and gas assets, find out potential joint investments in value-accretive new energy and lower carbon projects, and means of cooperation on emissions management initiatives.

Commenting on the announcement, Bakheet Al Katheeri, Chief Executive Officer of UAE Investments Platform at Mubadala Investment Company, said; “Energy transition and decarbonization are key drivers shaping the global economy. By bringing together two of Abu Dhabi’s leading international energy champions to leverage their deep expertise, we are creating a catalyst for innovation. I’m confident this collaboration will accelerate solutions to complex challenges and create opportunities for strategic investment.”

Additionally, Mansoor Mohamed Al Hamed, CEO Mubadala Energy, said; “Aligned with the UAE’s net zero ambitions, we continue to action a clear strategy to recalibrate our business and play a more proactive role in supporting the energy transition drive towards lower carbon energy. This means we are doubling down on gas across our value chain, exploring investments in new energy sectors such as blue hydrogen and carbon capture, utilization and storage (CCUS), and looking at other technological levers to decarbonize operations. This bold partnership with Masdar has the potential to greatly accelerate these efforts as well as create opportunities in growth sectors within the industry. As the UAE prepares to welcome leaders from around the world for COP28, we’re proud to be forging this strategic partnership.”

For his part, Mohamed Jameel Al Ramahi, CEO, Masdar, commented; “Masdar believes that energy sector investments must support scalable clean energy alternatives, new solutions for hard to abate industries and more efficient use of natural resources, to mitigate climate change while ensuring a sustainable energy supply. This landmark agreement with Mubadala Energy aligns with those objectives and with our shared ambition to position the UAE at the forefront of the global energy transition.”