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UAE continues renewable energy push with Azerbaijan deal

The two countries will work to develop power from wind, solar and green hydrogen sources.
Emiratis walk in Masdar City, on the outskirts of the rich Emirate of Abu Dhabi, on October 7, 2015.

An Emirati renewable energy firm signed two cooperation agreements with Azerbaijan yesterday. 

In the first agreement, Masdar and Azerbaijan’s Ministry of Energy pledged to develop onshore wind projects and solar photovoltaic projects each with a capacity of 1,000 megawatts. They also signed a deal on offshore wind projects and green hydrogen projects with a 2,000 megawatts capacity, Masdar said in a press release. 

Masdar is owned by the United Arab Emirates sovereign wealth fund Mubadala. 

The agreement followed Masdar and the ministry discussing green energy cooperation in Abu Dhabi last month, the official Azerbaijan State News Agency reported

The projects are located in Azerbaijan, according to Masdar.

What is it? Onshore wind energy comes from wind turbines on land, whereas offshore come from water. Photovoltaics refers to the conversion of light into energy. In this case, the light is from the sun. Green hydrogen occurs when hydrogen is separated from water using renewable energy that does not emit carbon dioxide. 

Why it matters: Oil and gas play a large part in the Emirati economy, but the UAE is currently investing a lot in renewable and green energy. Masdar plays a large role in this effort. In May, the Abu Dhabi-based firm announced a partnership with British Petroleum on producing low-carbon hydrogen. Also last month, Masdar unveiled a waste-to-energy facility to turn garbage into energy. 

Know more: Azerbaijan is a close ally of Turkey. The UAE and Turkey are currently working to repair their fractured relationship and recently signed a trade agreement

Note: this article was edited to specify that the energy projects are in Azerbaijan. 

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