Abu Dhabi-based Masdar has completed its acquisition of a 50% stake in U.S. renewable energy producer Terra-Gen Power Holdings II, LLC.
The deal, one of Masdar’s largest to date, was finalised in partnership with Energy Capital Partners (ECP), which has fully exited its position in Terra-Gen, and Igneo Infrastructure Partners, which retains its existing 50% stake.
The acquisition further highlights Masdar’s commitment to expanding its footprint in the U.S. renewable energy market.
Since entering the U.S. market in 2019, Masdar has rapidly built a portfolio of wind, solar, and storage assets with a generating capacity of over 1.4 gigawatts (GW).
The addition of Terra-Gen’s 3.8 GW operating portfolio of wind, solar, and battery storage projects will substantially boost Masdar’s renewable capacity. The acquisition is part of the UAE’s broader strategy to meet global renewable energy goals, with Masdar targeting 100 GW of installed capacity worldwide by 2030.
The Terra-Gen acquisition is significant in scale, with the company currently managing over 30 renewable power sites across the U.S., predominantly in California and Texas.
Terra-Gen is also actively developing more than 12 GW of wind, solar, and battery storage projects, further highlighting its critical role in meeting the growing U.S. demand for clean energy.
The acquisition is part of Masdar’s broader strategy to enhance its position as a global renewable energy leader. As part of this plan, the company aims to develop over 10 GW of clean energy capacity in the U.S. by 2030. Terra-Gen’s scalable platform is expected to play a pivotal role in achieving this ambitious target.
“Terra-Gen’s experienced management team and scalable platform make it the ideal partner, as we work to increase our presence and investment in the U.S.,” said Masdar’s CEO, Mohamed Jameel Al Ramahi.
“We look forward to partnering with Igneo to enhance Terra-Gen’s capabilities and position it as a leading developer, owner, and operator of reliable and clean renewable energy in the U.S.”
Terra-Gen’s CEO, Jim Pagano, echoed this sentiment, stating, “Masdar is a great partner for Terra-Gen because of our shared focus on developing clean energy projects and our commitment to decarbonisation.”
Terra-Gen’s current portfolio includes 3.8 GW of operating wind, solar, and battery storage projects, along with an additional 5.1 GWh of energy storage facilities. Its development pipeline of over 12 GW includes projects in California, Texas, and New York, with operations expected to begin in 2025.
The company’s expansion is expected to contribute significantly to U.S. clean energy targets, and Masdar’s backing will help accelerate the development of these projects.
Niall Mills, Managing Partner and Global Head of Igneo Infrastructure Partners, expressed confidence in the partnership, saying, “We see tremendous potential to continue driving growth and creating long-term value in the U.S. renewable power sector through the capable and experienced team at Terra-Gen.”
Several financial and legal advisors were involved in the transaction. Lazard and Guggenheim Securities served as financial advisors, and Latham & Watkins LLP provided legal counsel to Terra-Gen. On Masdar’s side, BMO Capital Markets and JP Morgan acted as financial advisors, with legal advice provided by White & Case LLP and Covington & Burling LLP. Mayer Brown served as legal advisor to Igneo Infrastructure Partners.
The transaction further strengthens the UAE’s role as a major player in the global clean energy transition.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President, and Chairman of Masdar, highlighted the importance of this collaboration. “The UAE and U.S. have long been partners in efforts to advance clean energy,” he said.
“Masdar’s acquisition of Terra-Gen reaffirms this long-standing commitment. We are now on target to surpass our goal of having 10 GW of integrated renewable generation capacity in the U.S. by 2030. This transaction aligns with the global ambition to triple renewable energy capacity, in line with the UAE Consensus reached at COP28.”
Masdar’s increasing investments in the U.S. come as part of the broader Partnership for Accelerating Clean Energy (PACE) agreement between the UAE and the U.S., which aims to advance renewable energy deployment.
Announced in January 2023, PACE includes a commitment of $20 billion in funding for 15 GW of clean energy projects in the U.S. by 2035, led by Masdar and a consortium of U.S. private investors.
