Masdar takes stake in London Array

Abu Dhabi's Masdar Initiative announced that it has acquired a significant ownership stake in the London Array, which is likely to be the world's largest offshore wind project when it's built.

Masdar bought 20 percent of the planned 1,000 megawatt wind power project from Germany's E.ON. Financial terms of the deal were not disclosed.

Earlier this year, E.ON and Denmark's Dong Energy became 50-50 partners in the project after Netherland-based Royal Dutch Shell (NYSE: RDS.A) dropped out (see E.ON, Dong buy Shell's stake in London Array). E.ON retains a 30 percent stake in the offshore wind farm.

"London Array is an important investment for Masdar into the wind sector," said Ahmed Al Jaber, CEO of Masdar, in a statement.

"We believe that the offshore wind market will be a major force in the future and this is a very opportune time for us to enter this developing segment of the renewable energy market."

Consisting of up to 271 turbines when complete, the first stage of the London Array, with up to 175 turbines, is scheduled to be finished in 2012.

Last month, Masdar made its first move in wind power, putting €120 million into Finnish wind turbine maker WinWinD (see Masdar makes another move in cleantech). Most of the cash is expected to go toward expanding WinWindD's Indian operations.

In addition to the London Array, Masdar and E.ON said they plan to team up on other deals and expect to announce a series of renewable energy projects over the coming months.