UAE’S Masdar to acquire 50% stake in US renewable energy giant Terra-gen
Abu Dhabi Future Energy Company (Masdar), the UAE'S clean energy powerhouse, announced that it has signed a definitive agreement to acquire a 50% stake in TerraGen Power Holdings II (TerraGen), one of the largest independent renewable energy power producers in the United States, from Energy Capital Partners (ECP).
ECP, a leading investor across energy transition, electrification and decarbonisation infrastructure assets, will fully exit its position in Terra-gen in connection with the transaction. Igneo Infrastructure Partners (Igneo), a global infrastructure investment manager, will retain its existing 50% stake in the company. Igneo made its initial investment in Terra-gen in December 2020.
Established in 2007, TerraGen is a leading independent provider of end-to-end renewable project development, financing and operating capabilities. 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 Terra-gen currently operates approximately 2.4GW of wind and solar, and 5.1GWH of energy storage facilities across 32 renewable power sites throughout the US, predominantly in California and Texas.
This transaction will position Terra-gen to continue building on the significant growth and transformation realised under ECP’S ownership and achieve accelerated long-term success as part of Masdar’s and Igneo’s portfolios.
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 renewable capacity and portfolio in the US. One of the world’s fastest-growing clean energy companies, 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 1.4GW.
The US market will play an important role as Masdar executes its plan to build a global renewable energy portfolio of at least 100GW capacity by 2030, and this proposed transaction represents another significant milestone towards that goal.
Mohamed Jameel al Ramahi, Chief Executive Officer of Masdar, said, “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. 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 as our valued partner to accelerate Terra-gen's growth and deliver world-class innovation at utility scale in support of the global energy transition.”
Jim Pagano, CEO of TerraGen, said, “Terra-gen is committed to developing responsible energy projects that benefit local communities and future generations. 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 likeminded partner with a track record of commitment to decarbonisation and clean energy projects in the US and around the world.”