Washington and Abu Dhabi -As both countries increase their investment and collaboration in clean energy technology, the strategic energy partnership between the US and the UAE keeps driving global efforts toward a sustainable future.
The UAE-US Partnership for Accelerating Clean Energy (PACE), which was introduced in November 2022, is the focal point of this collaboration. By 2035, the project hopes to raise $100 billion in funding to install 100 gigawatts of clean energy. In January 2023, the two nations announced a $20 billion pledge to build 15GW of sustainable energy projects in the United States, led by Masdar and American private-sector investors, as part of this aim.
The Abu Dhabi National Oil Company’s (Adnoc) purchase of a 35% ownership position in ExxonMobil’s blue hydrogen project in Texas further demonstrated the UAE’s determination to be a leader in clean energy. When the facility is finished, it should remove about 98% of carbon dioxide emissions and produce up to 1 billion cubic feet of blue hydrogen per day and over 1 million tonnes of low-carbon ammonia yearly.
Beyond the generation of energy, innovation continues to be a key component. In order to investigate cutting-edge technologies, such as space-based solar power and sophisticated climate solutions, the Abu Dhabi Department of Energy has inked strategic agreements with the University of Arizona and the International Renewable Energy Agency (IRENA).
Masdar, the UAE’s flagship clean energy company, has intensified its operations in the United States, which it identifies as a priority market. The company is targeting a 25GW clean energy portfolio within the next decade. Since entering the U.S. in 2019 through wind investments in Texas and New Mexico, Masdar has expanded aggressively.
In 2020, it partnered with EDF Renewables North America on a 1.3GW portfolio of wind and solar projects. More recently, in 2024, Masdar acquired a 50% stake in Terra-Gen, a leading U.S. renewable energy producer. This acquisition added 3.7GW of operational capacity, 6GW of advanced-stage projects, and a substantial early-stage development pipeline—bringing Masdar’s gross U.S. portfolio to over 5GW. Terra-Gen’s assets also include 5.1GWh of energy storage across 30 renewable sites, predominantly in California and Texas, with plans to develop an additional 12GW.
Ben Dietderich, Press Secretary and Chief Spokesperson for the U.S. Department of Energy, emphasized the deep-rooted energy relationship between the two nations. Speaking to the Emirates News Agency (WAM), he welcomed the UAE’s expanding investment in American energy ventures, calling it a driver of bilateral economic growth.
Dietderich also underscored the two countries’ civil nuclear cooperation and noted the increasing need for robust energy infrastructure to support emerging technologies, including data centers and artificial intelligence. “Our partnership extends far beyond trade—it’s about knowledge exchange, institutional collaboration, and delivering affordable, secure, and resilient energy systems,” he added.
In a reflection of the strategic ties, U.S. Energy Secretary Chris Wright selected the UAE as his first international visit since taking office. During his April 2025 trip, Secretary Wright engaged in high-level meetings with senior Emirati officials and industry leaders, further cementing the energy alliance.
Meanwhile, in Europe, greenhouse gas emissions rose to 897 million tonnes of CO2-equivalents in Q4 2024, a 2.2% increase compared to the previous year. The EU economy also posted a 1.5% GDP growth during the same period, according to Eurostat data released today. These figures serve as a reminder of the ongoing global balancing act between economic growth and environmental sustainability.
The UAE-US partnership remains a beacon of how strategic collaboration, innovation, and shared commitment can accelerate the global shift toward clean energy and a greener economy.
