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Masdar acquires 50% stake in Terra-Gen Power
Deal with Energy Capital Partners strengthens Abu Dhabi firm's position in US renewable energy sector
Michael Marray 9 Oct 2024

Masdar has acquired a 50% stake in Terra-Gen Power Holdings II, one of the largest independent renewable energy producers in the United States, from Energy Capital Partners (ECP).

ECP, a US private investor in power and renewable energy, has fully exited its position in Terra-Gen. Igneo Infrastructure Partners, a global infrastructure investment manager, retains a 50% stake.

Lazard and Guggenheim Securities served as financial advisers to Terra-Gen, with Latham & Watkins as legal adviser. BMO Capital Markets and J.P. Morgan were financial advisers to Masdar, with White & Case and Covington & Burling as legal advisers. Mayer Brown served as legal adviser to Igneo Infrastructure Partners.

The deal represents one of Masdar’s largest acquisitions, and further cements its position in the US renewable energy sector. The Abu Dhabi-based company first entered the market in 2019, and has a track record of funding, developing, owning and operating clean energy projects in the country.

Before the Terra-Gen deal, its US portfolio of utility-scale wind, solar and storage assets had a generating capacity of more than 1.4 gigawatts. The US market and Terra-Gen’s scalable platform will play important roles as Masdar executes its plan to build 100GW of capacity in its global renewable energy portfolio by 2030.

Terra-Gen’s gross operating portfolio currently comprises 3.8GW of wind, solar and battery storage projects, including 5.1GWh of energy storage facilities across 30 renewable power sites throughout the US, predominantly in California and Texas.

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

"We are now on target to surpass our goal of having 10GW of integrated renewable generation capacity in the US by 2030," comments Sultan Al Jaber, United Arab Emirates minister of industry and advanced technology, COP28 president and Masdar chairman. "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."

Masdar’s commitment to the US market reflects the UAE’s strong ties to the country. In January 2023, UAE and US officials announced that US$20 billion will be allocated to fund 15GW of clean energy projects in the US before 2035, led by Masdar and a consortium of US private investors, under the Partnership for Accelerating Clean Energy (PACE) between the two countries.