MENA Newswire News Desk: Abu Dhabi Future Energy Company, also known as Masdar, has officially closed its acquisition of a 50% stake in Terra-Gen Power Holdings II, LLC. This major transaction, conducted in partnership with Energy Capital Partners (ECP), marks a significant step forward for Masdar in the United States’ renewable energy sector. ECP, a private equity firm specializing in energy infrastructure, has fully divested its stake, while Igneo Infrastructure Partners, a global investment manager, retains its existing 50% share.
The acquisition highlights Masdar’s continued expansion in the U.S. renewable energy market, where it has maintained a presence since 2019. With this deal, Masdar aims to solidify its position as a key player in the renewable energy landscape. Prior to this acquisition, Masdar’s U.S. portfolio included over 1.4GW of generating capacity across wind, solar, and energy storage projects.
This move aligns with Masdar’s broader strategy to expand its renewable energy capacity to 100GW globally by 2030. Terra-Gen, with its extensive portfolio of 3.8GW of wind, solar, and battery storage projects, is seen as a key asset in achieving this target. Terra-Gen also operates 5.1GWh of energy storage across 30 sites in the U.S., predominantly located in California and Texas.
The partnership between Masdar and Terra-Gen is poised to drive further growth in the U.S. renewable energy sector. Terra-Gen is actively developing over 12GW of wind, solar, and battery storage projects, with key developments in California, Texas, and New York. Among the projects is a combined 386MW of wind and solar capacity in Texas and California, along with 512MWh of storage capacity in California, with operations expected to begin in 2025.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, emphasized the significance of the deal in strengthening the UAE’s partnership with the U.S. in clean energy development. “Masdar’s acquisition of Terra-Gen underscores our commitment to advancing renewable energy projects in the U.S.,” he said, referencing the Partnership for Accelerating Clean Energy (PACE) agreement between the UAE and the U.S. This transaction positions Masdar to exceed its goal of achieving 10GW of renewable capacity in the U.S. by 2030.
Masdar CEO Mohamed Jameel Al Ramahi expressed enthusiasm about the partnership, highlighting Terra-Gen’s scalable platform and experienced management team as ideal components for Masdar’s long-term strategy in the U.S. Terra-Gen CEO Jim Pagano echoed these sentiments, noting that Masdar’s focus on decarbonization aligns perfectly with Terra-Gen’s mission of expanding clean energy infrastructure.
Igneo Infrastructure Partners’ Global Head, Niall Mills, described the acquisition as a pivotal moment for Terra-Gen’s growth. Having been an investor in Terra-Gen since 2020, Igneo sees this partnership with Masdar as an opportunity to capitalize on Terra-Gen’s robust pipeline of projects.
Financial advisors for Terra-Gen include Lazard and Guggenheim Securities, while Latham & Watkins LLP provided legal counsel. On Masdar’s side, BMO Capital Markets and JP Morgan acted as financial advisors, with legal advice from White & Case LLP and Covington & Burling LLP. Mayer Brown is advising Igneo Infrastructure Partners.