Masdar Completes Acquisition Of 50% Stake In Terra-Gen Power Holdings To Boost US Renewable Energy Efforts

Abu Dhabi Future Energy Company, known as Masdar, has completed the acquisition of a 50% stake in Terra-Gen Power Holdings II, LLC. This transaction marks one of Masdar's largest investments and strengthens its presence in the US renewable energy market. Energy Capital Partners (ECP) has fully exited its position in Terra-Gen, while Igneo Infrastructure Partners retains its existing 50% stake.

Masdar entered the US market in 2019 and has been actively involved in clean energy projects. Before acquiring Terra-Gen, Masdar's US portfolio included wind, solar, and storage assets with a capacity exceeding 1.4GW. The acquisition aligns with Masdar’s goal to achieve 100GW of global renewable energy capacity by 2030.

Terra-Gen operates a diverse portfolio of wind, solar, and battery storage projects across the US. Its current gross operating capacity is 3.8GW, including 5.1GWh of energy storage facilities mainly located in California and Texas. Terra-Gen is also developing over 12GW of new projects in these states and New York.

Dr. Sultan Al Jaber highlighted the UAE-US collaboration on clean energy through the Partnership for Accelerating Clean Energy (PACE). He stated that "Masdar has a strong track record of supporting US renewable energy projects." The acquisition supports Masdar’s aim to exceed 10GW of renewable generation capacity in the US by 2030.

Mohamed Jameel Al Ramahi emphasised Terra-Gen's experienced management team as an ideal partner for expanding Masdar’s investment in the US. He expressed eagerness to work with Igneo to enhance Terra-Gen’s capabilities as a leading developer of clean energy.

Jim Pagano from Terra-Gen noted that this deal solidifies their partnership with Masdar due to their shared focus on clean energy and decarbonisation efforts. Niall Mills from Igneo sees significant potential for growth and value creation in the US renewable sector through this collaboration.

Financial Advisors and Legal Support

The transaction involved several financial and legal advisors. Lazard and Guggenheim Securities advised Terra-Gen financially, while Latham & Watkins LLP provided legal counsel. For Masdar, BMO Capital Markets and JP Morgan served as financial advisors, with White & Case LLP and Covington & Burling LLP offering legal advice. Mayer Brown acted as legal advisor for Igneo Infrastructure Partners.

Established in 2006, Masdar remains committed to advancing global renewable energy initiatives. The recent acquisition supports the UAE Consensus goal to triple global renewables capacity by 2030. In January 2023, UAE and US officials announced a $20 billion fund for clean energy projects under PACE, led by Masdar and US investors.

This strategic move underscores Masdar's dedication to fostering sustainable growth within the renewable energy sector globally while strengthening ties between the UAE and the United States through collaborative efforts like PACE.

With inputs from WAM