Abu Dhabi National Oil Co. (ADNOC) is in preliminary talks to acquire a significant minority stake in Masdar, Bloomberg reported citing people familiar with the matter.

It could be one of the renewable energy industry’s largest deals this year, said the people who asked not be identified.

The deal would help ADNOC diversify its portfolio into more carbon-neutral assets.

ADNOC is interested in the company’s portfolio of solar parks, wind farms, waste-to-energy projects and electric vehicle charging networks, the people said.

State-owned utility Abu Dhabi National Energy Co., known as TAQA, had also previously studied a potential investment in Masdar, they said.

The UAE is targeting net-zero carbon emissions by the middle of the century.

ADNOC’s portfolio is mainly in hydrocarbons. The acquisition of a Masdar stake would allow it to funnel its fossil fuel profits into alternative energy sources, Bloomberg said.