Renewable Energy

Masdar completes purchase of stake in green energy producer

October 1, 2024, 12:36 PM

Most of Terra-Gen's wind and solar projects are based in California and Texas

Masdar now owns half of Terra-Gen
It has 3.8GW of green projects
Masdar active in 40 countries

UAE renewable energy major Masdar has completed its acquisition of a 50 percent stake Terra-Gen Power Holdings II, one of the largest independent renewable energy power producers in the US.

Masdar bought the stake from US investment company Energy Capital Partners. No financial details on the deal, which was first announced in March, were shared.

Igneo Infrastructure Partners, an Australian infrastructure investment manager, will retain its 50 percent stake in the company.

Established in 2007, Terra-Gen operates 3.8 gigawatts of wind, solar and battery storage projects, including 5.1 gigawatt-hours of energy storage facilities across the US, most of which are in California and Texas.

Terra-Gen is developing more than 12GW of wind, solar and battery storage projects in California, Texas and New York.

Before the Terra-Gen acquisition, Masdar’s US portfolio of utility scale wind, solar and storage assets had a generating capacity of around 1.4GW.

The Abu Dhabi-based energy company has plans to build 100GW of capacity in its global renewable energy portfolio by 2030.

Dr Sultan Al Jaber, minister of industry and advanced technology and chairman of Masdar, said it is now on target to surpass its goal of 10GW of capacity in the US.

“This transaction unlocks further economic opportunities from green growth, and aligns with the global ambition to triple renewable energy capacity, in line with the historic UAE Consensus reached at Cop28,” he said.

Established in 2006, Masdar is active in more than 40 countries and has more than 20GW of capacity including operational, under construction or advanced development projects in its worldwide portfolio.

In September, Masdar’s chief financial officer Mazin Khan said it was seeking to expand its global portfolio, including potential deals in China.

Mazin Khan told AGBI “macroeconomic conditions, with high interest rates and renewable players looking for capital” were opening the door for mergers and acquisitions in China.

He said Masdar is particularly interested in onshore and offshore wind and solar technologies.

Last week, Masdar acquired a portfolio of renewable power projects in Spain and Portugal from the New York Stock Exchange-listed Brookfield Renewable for $1.4 billion. The transaction is expected to close by the end of the year, subject to regulatory approvals.