Abu Dhabi Future Energy Company (Masdar) has signed an agreement to acquire Energy Capital Partners’ (ECP) 50% stake in Terra-Gen, one of the largest independent renewable energy power producers in the United States.
As a result of the deal, ECP will fully exit its position in Terra-Gen.
The remaining 50% stake in Terra-Gen will continue to be held by Igneo Infrastructure Partners (Igneo), a global infrastructure investment manager. Igneo made its initial investment in Terra-Gen in December 2020.
“Our investment in Terra-Gen’s impressive energy portfolio expands our existing US footprint and reinforces Masdar’s long-term commitment across our US portfolio,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. “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.”
Terra-Gen is a leading independent provider of end-to-end renewable project development, financing and operating capabilities.
Established in 2007, the company 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 US, predominantly in California and Texas.
“Terra-Gen is committed to developing responsible energy projects that benefit local communities and future generations,” said Jim Pagano, CEO of Terra-Gen. “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 decarbonisation and clean energy projects in the US and around the world.”
UAE-based 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.
Masdar is aiming for a renewable energy portfolio capacity of 100GW by 2030, supporting the target to triple global renewables capacity by the end of this decade.
Earlier this month, Masdar acquired a 49% shareholding in the 3 gigawatts (GW) Dogger Bank South (DBS) project – one of the world’s largest planned offshore wind farms. Last year, the company announced a 15 billion euro strategic partnership with Spain’s Iberdrola to develop offshore wind and green hydrogen projects in key markets like Germany, the UK, and the USA.
Terra-Gen was originally acquired by ECP in 2015. The transaction is expected to close by the end of 2024, subject to regulatory and other customary approvals.
