Abu Dhabi the global shift to sustainable energy is being advanced in large part by a strong energy partnership between the United States and the United Arab Emirates. The two countries are showing a common commitment to energy security and sustainable development, especially in emerging economies, through multibillion-dollar investments and strategic alliances.
The UAE-US Partnership for Accelerating Clean Energy (PACE), which was introduced in November 2022, is the focal point of this partnership. By 2035, this historic project hopes to raise $100 billion in funding to install 100 gigawatts (GW) of clean energy worldwide. With American private-sector investors and UAE renewable energy pioneer Masdar leading the charge, the partners announced in January 2023 a $20 billion investment to build 15GW of clean energy projects across the United States.
The Abu Dhabi National Oil Company (ADNOC) further strengthened the program by purchasing a 35% share in ExxonMobil’s blue hydrogen facility located in Texas. Up to 1 billion cubic feet of blue hydrogen per day, almost 98% of carbon dioxide emissions, and more than 1 million tonnes of low-carbon ammonia per year are anticipated from the advanced plant.
Beyond infrastructure, the United States and the United Arab Emirates are collaborating on sustainable energy technologies. To investigate cutting-edge technologies including space-based solar power and advanced climate solutions, the Abu Dhabi Department of Energy has signed partnerships with the International Renewable Energy Agency (IRENA) and the University of Arizona.
Masdar, a key player in the partnership, has rapidly expanded its footprint in the US. With a target of reaching 25GW of clean energy capacity in the country within the next decade, Masdar’s investments span wind, solar, and battery storage projects in states like California, Texas, New York, and New Mexico.
With investments in the Rocksprings and Sterling wind farms, the business started its US journey in 2019. A year later, Masdar and EDF Renewables North America collaborated on seven 1.3GW operational projects. By purchasing a 50% share in Terra-Gen, one of the leading producers of renewable energy in the US, in 2024, it made a significant advancement.
The Terra-Gen acquisition added 3.7GW of operating capacity and an additional 6GW of projects in advanced stages, along with an extensive early-stage pipeline. This move boosted Masdar’s gross US portfolio beyond 5GW, making it a significant contributor to the country’s clean energy grid.
Terra-Gen’s assets span wind, solar, and energy storage installations—particularly in California and Texas—with over 5.1GWh of storage capacity across 30 sites. The company is also developing another 12GW in clean energy projects across California, Texas, and New York, underscoring the scale and ambition of the UAE-US energy collaboration.
Together, the UAE and US are not only accelerating clean energy deployment but are also setting a blueprint for global partnerships in the energy transition.
