Masdar to acquire 50% stake in US-based Terra-Gen

Masdar is set to acquire a 50% stake in Terra-Gen, an independent renewable energy power producer in the US, from Energy Capital Partners.

Established in 2007, Terra-Gen is an independent provider of end-to-end renewable project development, financing and operating capabilities.

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.

Infrastructure investment manager Igneo Infrastructure Partners will retain its existing 50% stake in the company and together with Masdar, aim to grow Terra-Gen’s renewable capacity and portfolio in the US.

Masdar first invested in the US energy market in 2019 and now has a portfolio of more than 1.4GW generating capacity. The UAE-based energy giant aims to build a global renewable portfolio of 100GW by 2030, and considers this investment an important step in reaching that goal.

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Philip Haddad, president and CEO of Masdar Americas, commented in a statement: "We’ve been impressed by Terra-Gen’s record, scalable platform of operating assets and realizable project pipeline underpinning its growth trajectory.

"Upon closing, we look forward to actively partnering with Igneo and working closely with Terra-Gen’s experienced management team to support Terra-Gen’s operations, facilitate its development of new capacity renewable energy projects and expand its presence in and beyond its key markets."

The transaction is expected to close by the end of 2024, once the regulatory approvals have been granted.