Masdar, the United Arab Emirates-based clean energy firm, today announced that it has signed a definitive agreement to acquire a 50 percent stake in Terra-Gen Power Holdings, independent renewable energy power producers in the United States, from Energy Capital Partners (“ECP”).
According to Masdar media statement, ECP, a leading investor across energy transition, electrification, and decarbonisation infrastructure assets, will fully exit its position in Terra-Gen in connection with the transaction. Igneo Infrastructure Partners, a global infrastructure investment manager, will retain its existing 50 percent stake in the company. Igneo made its initial investment in Terra-Gen in December 2020.
Established in 2007, Terra-Gen is a leading independent provider of end-to-end renewable project development, financing, and operating capabilities. Terra-Gen has a proven track record of developing, owning, and operating assets across a large and diverse set of renewable technologies in the most attractive markets for renewables and storage in the U.S. Terra-Gen currently operates approximately 2.4 GW of wind and solar, and 5.1 GWh of energy storage facilities across 32 renewable power sites throughout the U.S., predominantly in California and Texas. This transaction will position Terra-Gen to continue building on the significant growth and transformation realized under ECP’s ownership and achieve accelerated long-term success as part of Masdar’s and Igneo’s portfolios.
“Masdar’s 18-year history of funding, developing, owning, and operating clean energy projects around the world will support Terra-Gen’s ambitions to grow its renewable capacity and portfolio in the U.S. One of the world’s fastest-growing clean energy companies, UAE-based Masdar first invested in the U.S. energy market in 2019. Its U.S. portfolio of utility-scale wind, solar, and storage assets has a generating capacity of more than 1.4 GW. ” stated Masdar in its press remarks. The U.S. market will play an important role as Masdar executes its plan to build a global renewable energy portfolio of at least 100 GW capacity by 2030, and this proposed transaction represents another significant milestone toward that goal.
Philip Haddad, President and CEO of Masdar Americas, said, “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.”
Terra-Gen was originally acquired by ECP in 2015, and under its ownership, Terra-Gen more than tripled its portfolio of operating renewable assets. Under Igneo and ECP, since 2020, Terra-Gen has added over 1 GW of generating capacity and 5 GWh of storage, expanded its pipeline of wind, solar, and battery storage projects and enjoyed sustained growth.
The transaction is expected to close by the end of 2024, subject to regulatory and other customary approvals.
Lazard and Guggenheim Securities are serving as financial advisors and Latham & Watkins LLP is serving as legal advisor to Terra-Gen. BMO Capital Markets and JP Morgan are serving as financial advisors and White & Case LLP and Covington & Burling LLP are serving as legal advisors to Masdar. Mayer Brown is serving as legal advisor to Igneo, said Masdar in a press release.
