The strategic energy partnership between the United Arab Emirates (UAE) and the United States (U.S.) is set to bolster both nations’ commitment to a sustainable future. This collaboration focuses on substantial joint investments in clean and renewable energy technologies, enhancing global energy security and supporting emerging economies.

A key component of this partnership is the UAE-U.S. Partnership for Accelerating Clean Energy (PACE), which was launched in November 2022. The initiative aims to mobilize $100 billion in financing to deploy 100GW of clean energy by 2035. In January 2023, the two countries announced a $20 billion allocation to develop 15GW of clean energy projects in the United States by the same year, with Masdar leading the initiative alongside private-sector investors from the U.S.

Additionally, the Abu Dhabi National Oil Company (ADNOC) has entered the clean energy sphere by acquiring a 35 percent equity stake in ExxonMobil’s blue hydrogen project in Texas. This project is expected to produce up to 1 billion cubic feet of blue hydrogen daily, with approximately 98 percent of carbon dioxide removed, and generate over 1 million tonnes of low-carbon ammonia annually.

In a further push for innovation, the Abu Dhabi Department of Energy has signed agreements with the University of Arizona and the International Renewable Energy Agency (IRENA). These agreements aim to explore advanced clean energy technologies, such as space-based solar power and climate acceleration tools.

Masdar’s commitment to the U.S. market is evident as it sets a target for a clean energy portfolio of 25GW over the next decade. Its current U.S. projects include wind, solar, and battery storage initiatives in states like California, Texas, New York, and New Mexico. Since starting its U.S. operations in January 2019, Masdar has invested in projects such as the Rocksprings and Sterling wind farms.

Masdar’s collaboration with EDF Renewables North America in 2020 resulted in a portfolio of seven operational projects totaling 1.3GW. In 2024, Masdar expanded its presence by acquiring a 50 percent stake in Terra-Gen, one of the leading renewable power producers in the U.S., which added another 3.7GW of operating capacity.

With this acquisition, Masdar’s gross operating portfolio in the U.S. now exceeds 5.0GW, comprising a mix of wind, solar, and battery storage projects. The Terra-Gen acquisition brought its total to 3.7GW, including 5.1GWh of energy storage facilities across 30 renewable power sites, mainly in California and Texas.

Ben Dietderich, the press secretary at the U.S. Department of Energy, highlighted the long-standing partnership between the U.S. and the UAE in the energy sector. He noted the great potential for expanding collaboration and welcomed the UAE’s increasing investments in American energy projects, which are expected to foster economic growth for both countries.

Dietderich emphasized that the partnership extends beyond trade and investment, incorporating knowledge exchange and the promotion of reliable and secure energy. He also pointed out the importance of developing energy infrastructure to support emerging sectors such as data centers and artificial intelligence.

In April, the UAE hosted U.S. Energy Secretary Chris Wright during his inaugural overseas visit, marking the UAE as the first stop on his Middle East tour. During this two-day visit, Wright engaged in high-level discussions with senior government and industry leaders across the country.