Masdar has closed its acquisition of a 50% in a US renewables independent power producer.
Masdar acquired the stake in Terra-Gen Power Holdings 2 from Energy Capital Partners (ECP).
ECP, one of the largest private investors in power and renewable assets in the United States, has fully exited its position in Terra-Gen in connection with the closing of the transaction.
Igneo Infrastructure Partners, a global infrastructure investment manager, retains its existing 50% stake in Terra-Gen.
Terra-Gen’s gross operating portfolio comprises 3.8GW of wind, solar and battery storage projects, including 5.1GWh of energy storage facilities across 30 renewable power sites, predominantly in California and Texas.
Terra-Gen is developing more than 12GW of wind, solar and battery storage projects in the US.
Its development activities include projects in California, Texas and New York. The project pipeline includes 386MW of Texas wind and California solar, and 512MWh of California energy storage facilities, with commercial operations anticipated in 2025.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “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 US as part of Masdar’s commitment to a long-term strategy in this important market.
“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 US.”
Jim Pagano, CEO of Terra-Gen, said: “The finalisation of this deal cements a strong relationship between Masdar and Terra-Gen.
“Masdar is a great partner for Terra-Gen because of our shared focus on developing clean energy projects and our commitment to decarbonisation.
“We look forward to working with them to expand and build on our pipeline of US projects.”
In January 2023, UAE and U.S. officials announced that $20bn will be allocated to fund 15GW of clean energy projects in the US before 2035, led by Masdar and a consortium of US private investors, under the Partnership for Accelerating Clean Energy (PACE) between the two countries.