Masdar Completes Acquisition of Terra-Gen Power Holdings

Abu Dhabi Future Energy Company (Masdar), the UAE’s clean energy powerhouse, in which Abu Dhabi National Energy Company (TAQA) holds a 43% shareholding, on Tuesday said that it has completed the acquisition of 50% stake in the US-based Terra-Gen Power Holdings II, LLC (Terra-Gen), from Energy Capital Partners (ECP), one of the largest private investors in power and renewable assets in the US.

ECP is one of the largest private investors in power and renewable assets while Terra-Gen is one of the largest independent renewable energy power producers in the US, Masdar said in a regulatory filing with Abu Dhabi Securities Exchange (ADX) this morning.

Masdar now holds 50% stake in the company, while Igneo Infrastructure Partners, will retain their existing 50% stake in the Company. ECP has fully exited its position in Terra-Gen post acquisition of its stake by Masdar.

Terra-Gen’s gross operating portfolio currently comprises 3.8 GW of wind, solar, and battery storage projects, including 5.1 GWh of energy storage facilities across renewable power sites throughout the US, predominantly in California and Texas.

Terra-Gen is currently developing more than 12 GW of wind, solar and battery storage projects in the US. Its development activities include projects in California, Texas and New York and the project pipeline includes 386 MW of Texas wind and California solar, and 512 MWh of California energy storage facilities, with commercial operations anticipated in 2025.

Masdar’s Largest Deal

Representing one of Masdar’s largest transactions, the deal further cements the company’s position in the US.

Masdar first entered the US market in 2019 and has a proven history of funding, developing, owning and operating clean energy projects in the country. Before the Terra-Gen acquisition, its US portfolio of utility scale wind, solar and storage assets had a generating capacity of more than 1.4 GW. The US market and Terra-Gen’s scalable platform will play important roles as Masdar executes its plan to build 100 GW of capacity in its global renewable energy portfolio by 2030.

The UAE Minister of Industry and Advanced Technology and Masdar Chairman Dr Sultan Al Jaber said that the UAE and US have long been partners in efforts to advance clean energy, a collaboration culminating in the Partnership for Accelerating Clean Energy (PACE) agreement.

“The acquisition of Terra-Gen reaffirms this long-standing commitment. We are now on target to surpass our goal of having 10 GW of integrated renewable generation capacity in the US by 2030. This transaction unlocks further economic opportunities from green growth, and aligns with the global ambition to triple renewable energy capacity, in line with the historic UAE Consensus reached at COP28,” he added.

Masdar CEO Mohamed Jameel Al Ramahi said that Terra-Gen’s experienced management team and scalable platform make it the ideal partner, as we work to increase our presence and investment in the U.S. as part of Masdar’s commitment to a long-term strategy in this important market.

Terra-Gen CEO Jim Pagano said that the deal cements a strong relationship between Masdar and Terra-Gen. Masdar is a great partner for Terra-Gen because of our shared focus on developing clean energy projects and our commitment to decarbonisation, he said.

Niall Mills, Managing Partner and Global Head of Igneo, said that Terra-Gen has been a strong platform for Igneo in the US since our investment in 2020. 

“We see tremendous potential to continue driving growth and creating long-term value in the U.S. renewable power sector through the capable and experienced team at Terra-Gen, and we look forward to partnering with Masdar on this exciting next phase of expansion,” Mills added.