TotalEnergies (NYSE: TTE) and Masdar signed a binding agreement to establish a $2.2 billion 50/50 joint venture that will merge their onshore renewable activities across nine Asian countries.

The joint venture will combine assets with 3 gigawatts of operational capacity and 6 gigawatts under advanced development expected to be operational by 2030. Each company will contribute assets of comparable value to the partnership.

The joint venture will operate in Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea and Uzbekistan. It will serve as both companies' vehicle for developing, building, owning and operating onshore solar, wind and battery storage projects in these markets.

"We are delighted with the signing of this agreement with Masdar, which brings together two major renewable players to build a renewable champion in Asia," said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

The joint venture will be headquartered in Abu Dhabi Global Market and staffed by approximately 200 employees from both companies. The management team will be announced at a future date.

Masdar CEO Mohamed Jameel Al Ramahi said the partnership "strengthens and diversifies our portfolio, unlocking new opportunities in attractive, high-growth markets."

The transaction closing is subject to regulatory approvals and conditions, according to the companies' press release.

Masdar, established in 2006, has a portfolio totaling over 65 gigawatts across six continents. The company is jointly owned by TAQA, ADNOC and Mubadala and targets a portfolio capacity of 100 gigawatts by 2030.