Masdar Acquires 50% Stake in Renewable Energy Producer Terra-Gen

Masdar, Abu Dhabi Future Energy Company and the UAE’s clean energy powerhouse, has signed an agreement to acquire a 50% stake in Terra-Gen Power Holdings II (Terra-Gen), one of the largest independent renewable energy power producers in the US, from Energy Capital Partners (ECP).

ECP, a leading investor across energy transition, electrification and decarbonisation infrastructure assets, will fully exit its position in Terra-Gen in connection with the transaction. Igneo Infrastructure Partners (Igneo), a global infrastructure investment manager which made its initial investment in Terra-Gen in December 2020, will retain its existing 50% stake in the company.

Terra-Gen has a proven track record of developing, owning and operating assets across a large and diverse set of renewable technologies in the most attractive markets for renewables and storage in the US Terra-Gen currently operates approximately 2.4 GW of wind and solar, and 5.1 GWh of energy storage facilities across 32 renewable power sites throughout the U.S., predominantly in California and Texas.

This transaction will position Terra-Gen to continue building on the significant growth and transformation realized under ECP’s ownership and achieve accelerated long-term success as part of Masdar’s and Igneo’s portfolios.

Masdar first invested in the US energy market in 2019. Its US portfolio of utility scale wind, solar and storage assets has a generating capacity of more than 1.4 GW. The US market will play an important role as Masdar executes its plan to build a global renewable energy portfolio of at least 100 GW capacity by 2030, and this proposed transaction represents another significant milestone towards that goal.

Commitment Reinforced

Masdar CEO Mohamed Jameel Al Ramahi said that their investment in Terra-Gen’s energy portfolio expands their US footprint and reinforce Masdar’s long-term commitment across Masdar’s US portfolio.

“This transaction unites one of the largest independent renewable energy producers in the US with Masdar – one of the fastest growing clean energy companies in the world. We look forward to working alongside Igneo as our valued partner to accelerate Terra-Gen’s growth and deliver world-class innovation at utility scale in support of the global energy transition,” he said.

Masdar Americas President and CEO Philip Haddad said that Terra-Gen has a record scalable platform of operating assets and realisable project pipeline underpinning its growth trajectory.

Terra-Gen CEO Jim Pagano said that Terra-Gen is committed to developing responsible energy projects that benefit local communities and future generations.

We have enjoyed a tremendous partnership with ECP, which allowed us to build a strong and resilient business positioned for long-term growth. As we look to build on our tangible pipeline of projects, we are excited to work with Masdar, a like-minded partner with a track record of commitment to decarbonization and clean energy projects in the U.S. and around the world,” he added.