Masdar Acquires 50% Stake in Terra-Gen from Energy Capital Partners

Masdar, the United Arab Emirates’ leading clean energy company, has successfully closed its acquisition of a 50 percent stake in Terra-Gen Power Holdings II, LLC, a major independent renewable energy producer in the United States. The deal, which was finalized following the exit of Energy Capital Partners (ECP) from the company, is part of Masdar’s ongoing efforts to expand its clean energy footprint in the U.S.

Energy Capital Partners Exits Terra-Gen Energy Capital Partners, one of the largest private investors in power and renewable energy assets in the U.S., has fully exited its position in Terra-Gen as part of the transaction. Igneo Infrastructure Partners, a global investment manager, retains its existing 50 percent stake in Terra-Gen, continuing its involvement in the company’s operations.

Strategic Growth for Masdar in the U.S. This acquisition is one of Masdar’s largest transactions in the U.S. market, further cementing the company’s commitment to renewable energy development in the region. Masdar entered the U.S. market in 2019 and has since built a portfolio of utility-scale wind, solar, and energy storage projects with a combined capacity exceeding 1.4GW. The Terra-Gen acquisition will contribute to Masdar’s global strategy to develop 100GW of renewable energy capacity by 2030.

Terra-Gen’s current operational portfolio includes 3.8GW of wind, solar, and battery storage projects, along with 5.1GWh of energy storage capacity across 30 renewable power sites in California, Texas, and other states. The company is also actively developing over 12GW of additional projects, with new commercial operations expected in 2025.

Statements from Key Leaders HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, emphasized the UAE’s long-standing partnership with the U.S. in clean energy initiatives, citing the Partnership for Accelerating Clean Energy (PACE) agreement. “Masdar’s acquisition of Terra-Gen underscores our commitment to renewable energy in the U.S., placing us on track to surpass 10GW of integrated capacity in the market by 2030,” he said.

Masdar CEO Mohamed Jameel Al Ramahi praised Terra-Gen’s scalable platform and experienced management team, stating that the acquisition strengthens Masdar’s long-term strategy in the U.S. renewable energy sector. Terra-Gen CEO Jim Pagano added that the partnership with Masdar aligns with both companies’ shared focus on clean energy development and decarbonization efforts.

Niall Mills, Managing Partner of Igneo Infrastructure Partners, highlighted Terra-Gen’s potential for continued growth in the U.S. renewable energy sector, expressing enthusiasm for the next phase of the company’s expansion alongside Masdar.

Masdar’s Global Renewable Energy Ambitions Established in 2006, Masdar has made significant strides in renewable energy projects worldwide. This latest acquisition supports the UAE’s efforts to triple global renewable energy capacity by the end of this decade, in line with the goals set during the historic UAE Consensus at COP28.

In January 2023, the UAE and U.S. announced plans to allocate $20 billion to fund 15GW of clean energy projects in the U.S. by 2035, led by Masdar under the PACE agreement. This acquisition marks a critical step in that journey, unlocking further economic opportunities from green growth.