Abu Dhabi Future Energy Company (Masdar) and Spanish multinational oil and gas company Cepsa strengthened their collaboration in renewables by signing a partnership agreement today at Abu Dhabi Sustainability Week, a media report said.

After signing a memorandum of understanding (MoU) in 2017, this new agreement aims to grow the renewables portfolio of both companies, reported state news agency Wam.

The focus will be on proven clean technologies, wind and solar photovoltaic, in Spain and Portugal, where Cepsa hopes to achieve a capacity of 500-600 MW in the next five years.

The collaboration builds on the energy expertise of both companies, which are wholly owned by Mubadala Investment Company, and reflects their efforts to leverage synergies across Mubadala’s diverse business portfolio to accelerate the deployment of renewable energy in international markets.

Pedro Miro, Cepsa’s CEO, said, "After the initial phase of screening market access opportunities in several geographies, we have agreed Iberia to be the initial focus for our joint growth strategy. This step will allow us to combine synergies and expertise in one of the leading renewable markets in the world."

Mohamed Jameel Al Ramahi, CEO of Masdar, said, "Masdar has a long-standing presence and growing portfolio of renewable energy projects in Europe. We’re delighted to see our collaboration with Cepsa gather momentum and look forward to pooling our expertise and project development track record to explore further commercial opportunities in the Iberian Peninsula in both solar and wind."

The agreement strengthens Cepsa’s diversified energy model and long-term strategy, and is in line with the forecasts outlined in the Cepsa Energy Outlook 2030 report. In 2017, Cepsa acquired the rights to develop its first wind farm in Jerez de la Frontera, in Spain’s southern province of Cadiz. The company has led the project through its development and construction phases and is targeting completion in the first quarter of 2019.