The two companies would focus on wind and solar "especially", they announced at the Abu Dhabi Sustainability Week (13-20 January).
Masdar and Cepsa are both part of the Mubadala Investment Company group, which has a portfolio covering renewable energy, aerospace, healthcare, and other areas.
Since 2006, Masdar has invested more than $2.5bn in renewable projects in its native United Arab Emirates, as well as in Jordan, Mauritiania, Egypt, Morocco, the UK, Serbia, Germany and Spain, it claimed.
It has a 20% stake in the 630MW London Array offshore wind site in the outer Thames Estuary in the UK, a 25% share in the UK’s first floating offshore wind project, Hywind, and owns 35% of the 402MW Dudgeon project off the UK’s Norfolk coast.
Meanwhile, Spanish oil company Cepsa (Compañia Española de Petróleos) placed an order for its first ever wind farm this week, contracting Siemens Gamesa to provide 11 turbines for a project in Cadiz, southwest Spain.
Announcing the MoU with Masdar, Cepsa stated its "objective within the renewable energy sector is to gain access to a fast-growing market, develop new capabilities and skills within the energy sector, and mitigate the volatility of some markets in which it operates, such as crude oil".