Abu Dhabi's Masdar to acquire 50% stake in US clean energy company Terra-Gen

US company offers end-to-end renewable project development, financing and operating capabilities

Masdar has developed and partnered in clean energy projects in more than 40 countries. Getty Images

Abu Dhabi clean energy company Masdar has agreed to acquire a 50 per cent stake in US renewable energy power producer Terra-Gen from New Jersey-based Energy Capital Partners.

Established in 2007, Terra-Gen is one of the largest independent renewable energy power producers in the US.

Energy Capital Partners will fully exit its position in the company following the transaction, while the infrastructure investment manager Igneo Infrastructure Partners will retain its existing 50 per cent stake in Terra-Gen, Masdar said on Tuesday.

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

Mohamed Al Ramahi,
chief executive of Masdar

Igneo, which made its initial investment in Terra-Gen in December 2020, manages $19.5 billion worth of assets on behalf of more than 200 investors around the world.

Financials of the transaction, which is expected to close by the end of the year, were not disclosed.

“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,” Mohamed Al Ramahi, chief executive of Masdar said.

“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.”

Terra-Gen offers end-to-end renewable project development, financing and operating capabilities.

It currently operates about 2.4 gigawatts of wind and solar, and 5.1 gigawatt-hours of energy storage compounds across 32 renewable power sites in the US, mainly in California and Texas.

The US market will play an important role as Masdar follows its plan to build a global renewable energy portfolio of at least 100 gigawatts of capacity by 2030.

Masdar made its first investment in the US energy market in 2019 and currently has a portfolio of utility-scale wind, solar and storage assets in the US with a generating capacity of more than 1.4 gigawatts.

“Terra-Gen is committed to developing responsible energy projects that benefit local communities and future generations,” said Jim Pagano, chief executive of Terra-Gen.

“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.”

Established in 2006, Masdar has developed and partnered in projects in over 40 countries.

The company is considering “transformative” acquisitions to expand its footprint in the US and Europe, its chief operating officer Abdulaziz Alobaidli told The National in November.

“Those are very attractive markets and very well-developed markets and we certainly would like to increase our footprint [there],” Mr Alobaidli said at the time.

Last year, Masdar closed the deal to acquire a 50 per cent stake in the California-based Big Beau project from EDF Renewables.

Last month, the company completed the acquisition of a 49 per cent stake in the 3-gigawatt Dogger Bank South project, one of the world’s largest planned offshore wind farms in the UK.

In January, Masdar signed an initial agreement with Germany’s Daimler Truck to explore the feasibility of liquid green hydrogen exports from the UAE to Europe by 2030. It is aiming for an annual green hydrogen production capacity of up to 1 million tonnes within the next decade.