Masdar Acquires 50% Stake In Terra-Gen Power Holdings II, LLC

Abu Dhabi Future Energy Company PJSC – Masdar (Masdar), a key player in clean energy from the United Arab Emirates, has finalized a deal to purchase a 50% stake in Terra-Gen Power Holdings II, LLC (Terra-Gen), a leading independent renewable energy power producer in the United States.

The acquisition, announced today, marks a significant move for Masdar in expanding its renewable energy portfolio globally. Terra-Gen, known for its extensive expertise in renewable project development, financing, and operations, currently operates approximately 2.4 GW of wind and solar, along with 5.1 GWh of energy storage facilities across 32 sites in the U.S.

Masdar’s CEO, Mohamed Jameel Al Ramahi, expressed enthusiasm about the investment, emphasizing its alignment with Masdar’s long-term commitment to sustainable energy solutions. Masdar’s entry into Terra-Gen’s portfolio is anticipated to accelerate the growth trajectory of the latter, particularly in expanding its renewable capacity and presence in the U.S. market.

Philip Haddad, President and CEO of Masdar Americas, highlighted Terra-Gen’s impressive track record and scalable platform, underscoring Masdar’s intent to actively support Terra-Gen’s operations and development of new renewable energy projects.

Jim Pagano, CEO of Terra-Gen, welcomed the partnership with Masdar, emphasizing their shared commitment to responsible energy projects and decarbonization efforts. He credited the strong foundation built during Terra-Gen’s partnership with Energy Capital Partners (ECP) and expressed excitement about the collaboration with Masdar for the company’s future endeavors.

Under the ownership of ECP, Terra-Gen witnessed substantial growth, with its portfolio of operating renewable assets tripling since 2015. The proposed transaction with Masdar and Igneo Infrastructure Partners, Terra-Gen’s existing 50% stakeholder, is expected to close by the end of 2024, subject to regulatory approvals.

Financial advisory services for Terra-Gen are provided by Lazard and Guggenheim Securities, while legal counsel is offered by Latham & Watkins LLP. BMO Capital Markets and JP Morgan are serving as financial advisors to Masdar, with legal representation by White & Case LLP and Covington & Burling LLP. Mayer Brown is providing legal advisory services to Igneo Infrastructure Partners.