Abu Dhabi Future Energy Company (Masdar) has closed its acquisition of a 50 per cent stake in Terra-Gen Power Holdings II, one of the largest independent renewable energy producers in the United States.
The deal’s value was not disclosed, but Masdar called it one of their “largest transactions.”
Masdar acquired the stake from Energy Capital Partners (ECP), one of the largest private investors in power and renewable assets in the United States. ECP fully exited its position in Terra-Gen, making Masdar and Igneo Infrastructure Partners 50-50 owners of Terra-Gen.
Masdar’s expanding US portfolio
Masdar aims to build 100GW of capacity in its global renewable energy portfolio by 2030, and the acquisition is expected to play a key role. It further cements Masdar’s position in the US market, which the UAE company entered for the first time in 2019 and has a proven history of funding, developing, owning and operating clean energy projects.
The company’s US portfolio of utility-scale wind, solar and storage assets had a generating capacity of more than 1.4GW. The Terra-Gen acquisition will add 3.8GW of wind, solar and battery storage projects, including 5.1GWh of energy storage facilities across 30 renewable power sites across the country.
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 386MW of Texas wind and California solar, and 512MWh of California energy storage facilities, with commercial operations anticipated in 2025.
Established in 2006, Masdar is jointly owned by TAQA, ADNOC, and Mubadala. Committed to advancing renewable energy projects across the globe, the Terra-Gen acquisition represents another significant milestone as the company works to support the target set in the historic UAE Consensus to triple global renewables capacity by the end of this decade.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President and Chairman of Masdar, commented: “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.
“Masdar has a strong track record of supporting US renewable energy projects, and the acquisition of Terra-Gen reaffirms this long-standing commitment.
“We are now on target to surpass our goal of having 10GW 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.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, added: “We look forward to partnering with Igneo to enhance Terra-Gen’s capabilities and position it as a leading developer, owner and operator of reliable and clean renewable energy in the US.”
Jim Pagano, CEO of Terra-Gen, said: “The finalisation of this 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. We look forward to working with them to expand and build on our pipeline of US projects.”
In January 2023, the UAE and the US officials announced that $20 billion will be allocated to fund 15GW of clean energy projects in the US before 2035 under the Partnership for Accelerating Clean Energy (PACE) between the two countries.
The company has developed and invested in projects in over 40 countries with a combined capacity of over 20 gigawatts (GW).
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