Masdar, recognized as the UAE’s leading clean energy powerhouse, has announced the successful completion of its acquisition of a 50% stake in Terra-Gen Power Holdings II, LLC. This move positions Masdar among one of the largest independent renewable energy producers in the United States. The acquisition was made from Energy Capital Partners (ECP), which has fully exited its investment in Terra-Gen as part of the transaction.

This acquisition underscores Masdar’s long-term commitment to supporting the energy transition in the US, a market in which it has been active since 2019. Prior to this deal, Masdar had established a robust portfolio of utility-scale wind, solar, and energy storage assets, collectively boasting over 1.4 GW of generating capacity. With the addition of Terra-Gen, Masdar aims to significantly enhance its footprint in the US renewable energy landscape.

Terra-Gen’s expansive portfolio

Terra-Gen currently operates a diverse portfolio with a gross capacity of 3.8 GW, which includes wind, solar, and battery storage projects. This portfolio features 5.1 GWh of energy storage across 30 renewable power sites, predominantly located in key renewable energy states such as California and Texas. Furthermore, Terra-Gen is actively developing over 12 GW of new wind and solar projects, with commercial operations for many expected to commence in 2025. This pipeline reflects a strategic focus on both scalability and sustainability in the US renewable energy sector.

Strong leadership and strategic partnership

HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President, and Chairman of Masdar, emphasized the significance of this acquisition during a recent press conference. He stated, “The UAE and US have long been partners in advancing clean energy, culminating in our collaborative efforts through the Partnership for Accelerating Clean Energy (PACE) agreement. This acquisition reaffirms our dedication to the American renewable energy sector and aligns perfectly with our goal of exceeding 10 GW of integrated renewable generation capacity in the US by 2030.”

Dr. Al Jaber further noted that the deal not only enhances Masdar’s operational capabilities but also unlocks new economic opportunities rooted in green growth. He highlighted the importance of this transaction in light of the global ambition to triple renewable energy capacity, as articulated in the historic UAE Consensus reached at COP28.

Vision for the future

Mohamed Jameel Al Ramahi, CEO of Masdar, spoke about the strategic advantages of partnering with Terra-Gen. “With Terra-Gen’s experienced management team and scalable platform, we believe we have found an ideal partner as we expand our investments in the American,” he remarked. Al Ramahi expressed confidence that this partnership would enhance Terra-Gen’s capabilities, ultimately positioning it as a leading developer, owner, and operator of reliable and clean renewable energy in the US.

In a similar vein, Jim Pagano, CEO of Terra-Gen, expressed his enthusiasm about the finalized agreement. “The finalization of this deal solidifies a strong partnership between Masdar and Terra-Gen. Our shared focus on developing clean energy projects and commitment to decarbonization makes Masdar an exceptional partner. We eagerly anticipate the opportunity to expand our pipeline of US projects together,” he stated.

Niall Mills, Managing Partner and Global Head of Igneo, echoed this sentiment, noting, “Terra-Gen has proven to be a strong platform for Igneo since our investment in 2020. We see tremendous potential for continued growth and the creation of long-term value within the US renewable power sector through the capable and experienced team at Terra-Gen. We are excited to partner with Masdar on this next phase of expansion.”

Commitment to global renewable energy goals

Established in 2006, Masdar has consistently demonstrated a commitment to advancing renewable energy projects worldwide. The acquisition of the 50% stake in Terra-Gen represents a significant milestone in its strategic vision, which includes supporting the goals outlined in the historic UAE Consensus to triple global renewable capacity by the end of this decade.

Masdar’s commitment to the US market is further evidenced by a major announcement in January 2023, in which UAE and US officials revealed a partnership aimed at allocating $20 billion to fund 15 GW of clean energy projects in the US by 2035. This ambitious initiative is led by Masdar and a consortium of American private investors under the framework of the PACE agreement, highlighting the strong ties between the UAE and the US in advancing clean energy initiatives.