Emirati state-owned clean energy company Masdar has closed its acquisition of a 50% stake in US independent power producer (IPP) Terra-Gen.
The acquisition was first announced in March, when Masdar said it would buy the 50% stake in Terra-Gen from US investment firm Energy Capital Partners. Igneo Infrastructure Partners, a global infrastructure investment manager, has retained its 50% stake following the closure of the Masdar deal.
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Terra-Gen currently has an operating portfolio of 3.8GW of solar PV, battery energy storage and wind power projects, mostly across California and Texas. Masdar said the IPP’s project development pipeline is over 12GW.
Owned by the UAE government, Masdar already has a US portfolio of 1.4GW of solar, storage and wind assets.
Ahmed Al Jaber, Masdar chairman and CEO of the Abu Dhabi National Oil Company (ADNOC), said: “The UAE and US have long been partners in efforts to advance clean energy, a collaboration culminating in the Partnership for Accelerating Clean Energy (PACE) agreement.”
The PACE agreement was signed in November 2022 with a view to catalysing US$100 billion in clean energy investment globally.
Masdar secured US$1 billion in green bonds in July this year to develop new greenfield renewable energy projects. In late 2023, following the COP28 conference in the UAE, Masdar announced a flurry of deals for around 4GW of renewable energy capacity.
Al Jaber was the chairman of COP28, the final determination of which received mixed reactions from the renewable energy industry. The global agreement to triple renewable energy capacity was applauded by the industry, but both the Global Solar Council and SolarPower Europe criticised the inclusion of “backdoors” for fossil fuel use.
At the time of the conference, there was debate over the decision to host a COP event in the UAE, which has historically been a major producer of oil, and over Al Jaber’s position as chairman, given his involvement in ADNOC.
Jim Pagano, CEO of Terra-Gen, said: “Masdar is a great partner for Terra-Gen because of our shared focus on developing clean energy projects and our commitment to decarbonisation.”
