Abu Dhabi: Masdar, the United Arab Emirates' clean energy powerhouse, today announced that it has signed a definitive agreement to acquire a 50 per cent stake in Terra-Gen, one of the largest independent renewable energy power producers in the United States, from Energy Capital Partners (ECP).
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 per cent stake in the company. Igneo made its initial investment in Terra-Gen in December 2020.
Established in 2007, Terra-Gen is a leading independent provider of end-to-end renewable project development, financing and operating capabilities. Terra-Gen currently operates approximately 2.4 GW of wind and solar and 5.1 GWh of energy storage facilities across 32 renewable power sites throughout the US, predominantly in California and Texas.
Masdar, with an 18-year history of funding, developing, owning, and operating clean energy projects worldwide, 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 1.4 GW.
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. 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 was originally acquired by ECP in 2015. Under Igneo and ECP since 2020, Terra-Gen has added over 1 GW of generating capacity and 5 GWh of storage, expanded its pipeline of wind, solar and battery storage projects and enjoyed sustained growth.
The transaction is expected to close by 2024, subject to regulatory and other customary approvals.
