Masdar to acquire 50% of US renewable power major Terra-Gen

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

The strategic investment highlights Masdar’s long-term commitment to,  confidence in and ambitious plans for the growing US renewable energy market. The deal will help accelerate Terra-Gen’s growth as a leading developer and operator of utility-scale clean energy projects

Deal will raise Masdar US green interests

Established in 2007, 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. It currently operates approximately 2.4GW of wind and solar, and 5.1GWh of energy storage facilities across 32 renewable power sites throughout the country, predominantly in California and Texas.

Masdar’s 18-year history of funding, developing, owning and operating clean energy projects around the world will support Terra-Gen’s ambitions to grow its US renewable capacity and portfolio.

Continued growth route for Terra-Gen

ECP - a leading investor across energy transition, electrification and decarbonisation infrastructure assets - will fully exit its position while global infrastructure investment manager Igneo Infrastructure Partners (Igneo) will retain its 50% stake.

The acquisition will enable Terra-Gen to continue building on significant growth and transformation realised under ECP and achieve accelerated long-term success as part of Masdar and Igneo portfolios.

Masdar first invested in the US energy market in 2019 and now has a portfolio there comprising utility scale wind, solar and storage assets, with generating capacity of more than 1.4GW.

US green expansion key to Masdar

That market and this milestone transition will play an important role as the UAE company seeks to build a global renewable energy portfolio of at least 100GW capacity by 2030.

Masdar CEO, Mohamed Jameel Al Ramahi, said investment in Terra-Gen’s “impressive energy portfolio” reinforces his company’s long-term commitment across its own 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 to accelerate Terra-Gen’s growth and deliver world-class innovation at utility scale in support of the global energy transition.”

Pipeline of projects

Terra-Gen was acquired by ECP in 2015, more than tripled its portfolio of operating renewable assets and, under Igneo and ECP (since 2020), added over 1GW of generating capacity, 5GWh of storage, while expanding a pipeline of wind, solar and battery storage projects.

Jim Pagano, Terra-Gen’s CEO, said the firm remains “committed to developing responsible energy projects that benefit local communities and future generations” having built “a strong and resilient business positioned for long-term growth”.

He added: “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.”