Total (TTE.US) and the UAE state-owned company Masdar have established a new energy joint venture worth $2.2 billion, with a production capacity of up to 9GW, spanning nine countries.

Total Energy Company (TTE.US) and United Arab Emirates new energy company Masdar announced on Thursday that they will merge their onshore renewable energy operations in nine Asian countries to form a joint venture worth $2.2 billion. The merged company will have an operational capacity of 3 GW, with an additional 6 GW in late-stage development. Both parties will each hold a 50% stake in this Abu Dhabi-based joint venture. The two companies will inject comparable assets into the joint venture, with projects under construction expected to be operational by 2030. After the transaction is completed, the joint venture will develop, build, own, and operate CECEP Solar Energy, wind, and energy storage projects; combining their businesses in Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea, and Uzbekistan. "Asia will be a major driver of global power demand growth in the next decade," said Sultan Al Jaber, Minister of Industry and Advanced Technology of the UAE and Chairman of Masdar. Last month, media reports indicated that US officials are drafting an agreement to pay Total nearly $1 billion as compensation for canceling a wind farm lease contract.