The United Arab Emirates and the United States have significantly enhanced their partnership in the energy sector over recent years, marked by a surge in joint investments aimed at promoting clean and renewable energy.

In November 2022, both nations formalized a strategic partnership committing to invest $100 billion in clean energy projects with a combined production capacity of 100 gigawatts across the UAE, the US, and other countries by 2035.

This partnership is designed to bolster energy security, disseminate clean technology applications, and support climate initiatives.

Specific goals include increasing investment in practical initiatives and technologies by focusing on innovation in clean energy, financing, deployment of solutions, carbon and methane emissions management, and advanced nuclear technologies, including small modular reactors.

The collaboration also aims to reduce emissions in industrial sectors and transportation.

Central to this strategic partnership is the development, funding, and deployment of clean energy projects in both the UAE and the US, along with efforts to accelerate investment in emissions reduction solutions for traditional fuel sources.

The partnership also emphasizes improving safety and security measures in nuclear energy, which includes securing supply chains and promoting nuclear energy as a sustainable clean energy source.

Masdar, Abu Dhabi's renewable energy company, has played a pivotal role in spearheading UAE investments in the US, beginning with investments in the Roxbury and Sterling wind farms in Texas and New Mexico in January 2019. In 2020, Masdar entered into a partnership with EDF Renewables North America, managing a portfolio of seven operational projects totaling 1.3 gigawatts.

In October 2024, Masdar announced a landmark acquisition of a 50% stake in Terra-Gen Power Holdings, one of the largest independent renewable energy producers in the US, adding 3.7 gigawatts to its operational capacity.

As part of its existing portfolio before this acquisition, Masdar had 1.3 gigawatts of operational capacity in the US, which included four wind projects in Texas and New Mexico and five solar projects in California, with two projects equipped with energy storage systems.

The acquisition of Terra-Gen enhances Masdar's portfolio with operational projects across wind and solar energy, as well as battery storage with a total capacity of 3.7 gigawatts.

Terra-Gen is actively developing projects exceeding 12 gigawatts in total capacity in California, Texas, and New York.

Overall, Masdar's operational project portfolio in the US exceeds 5.0 gigawatts, with several new projects under construction.

The company aims to increase the total operational capacity of its US project portfolio to 25 gigawatts over the next decade, reinforcing its commitment to investment and transformative energy solutions within the US, which presents significant growth opportunities to meet its global renewable energy target of reaching 100 gigawatts by 2030.

In February, the Abu Dhabi National Oil Company (ADNOC) announced a strategic shift of its investments to its international investment arm, XRIG, focusing on low-carbon energy and chemicals.

This initiative includes a 35% stake in ExxonMobil's hydrogen production facility in Texas and an 11.7% share in the natural gas liquefaction facility owned by NextDecade in Texas.

ADNOC seeks to amplify its presence in the US energy market through XRIG, catering to the rising demand for clean energy and contributing to the development of AI-driven solutions in energy.

The value of XRIG's assets is estimated at around $80 billion, with plans to double that valuation within the next decade.