Meed | Masdar acquires 50% of US renewables firm

Masdar acquires 50% of US renewables firm

20 March 2024

Abu Dhabi Future Energy Company (Masdar) has signed a definitive agreement to acquire a 50% stake in US-based Terra-Gen Power Holdings II from New Jersey-headquartered investment firm Energy Capital Partners (ECP).

Terra-Gen currently operates approximately 2,400MW of wind and solar projects and 5.1 gigawatt-hours of energy storage facilities across 32 renewable power sites throughout the US, predominantly in California and Texas.

ECP will fully exit its position in Terra-Gen in connection with the transaction.

Igneo Infrastructure Partners, 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.

The transaction follows Masdar's acquisition of a 49% shareholding in the 3GW Dogger Bank South offshore wind farms off England's northeastern coast in early March.

"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 said.

The Abu Dhabi-based company first invested in the US energy market in 2019. Its US portfolio of wind, solar and storage assets has a generating capacity of more than 1,400MW.

"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," Masdar added.

The transaction is expected to close by the end of 2024, subject to regulatory and other approvals.

Photo: Valley Centre energy storage facility, San Diego, US; Terra-Gen

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Jennifer Aguinaldo