Home Tech Masdar Ventures Abroad: Abu Dhabi’s Acquisition of Terra-Gen

Masdar Ventures Abroad: Abu Dhabi’s Acquisition of Terra-Gen

A company in the United States provides comprehensive services covering renewable project development, financing, and operations from start to finish.

by Soofiya

In a significant move towards expanding its global clean energy footprint, Abu Dhabi-based Masdar has announced its acquisition of a 50% stake in Terra-Gen, a prominent clean energy company headquartered in the United States.

This strategic investment marks a pivotal moment for both Masdar and Terra-Gen, signifying a mutual commitment to advancing renewable energy initiatives on a global scale. With Masdar’s proven track record in sustainable development and Terra-Gen’s expertise in clean energy solutions, the partnership is poised to drive innovation and accelerate the transition towards a more sustainable future.

Masdar’s decision to venture into the US clean energy market underscores its dedication to diversifying its portfolio and strengthening its presence in key regions worldwide. By acquiring a significant stake in Terra-Gen, Masdar not only gains access to a diverse portfolio of renewable energy assets but also establishes a strategic foothold in one of the world’s largest renewable energy markets.

The collaboration between Masdar and Terra-Gen is expected to yield synergies that will drive operational efficiency, enhance technological innovation, and foster the development of new renewable energy projects. By leveraging their combined resources and expertise, the two companies aim to capitalize on emerging opportunities in the rapidly evolving clean energy landscape.

Moreover, Masdar’s investment in Terra-Gen reflects its unwavering commitment to supporting the global transition towards sustainable energy solutions. With a focus on harnessing the power of renewable resources such as wind, solar, and hydroelectricity, Masdar continues to play a pivotal role in driving the energy transition and combating climate change.

Masdar, a clean energy company from Abu Dhabi, has reached an agreement to acquire a 50% stake in Terra-Gen, a US renewable energy power producer, from Energy Capital Partners based in New Jersey.

Established in 2007, Terra-Gen stands as one of the largest independent renewable energy power producers in the US.

Following the transaction, Energy Capital Partners will completely divest its position in the company, while Igneo Infrastructure Partners, an infrastructure investment manager, will maintain its existing 50% stake in Terra-Gen, as confirmed by Masdar on Tuesday. Igneo, which initiated its investment in Terra-Gen in December 2020, manages assets worth $19.5 billion on behalf of more than 200 investors globally.

The financial details of the transaction, slated to conclude by year-end, were not disclosed.

Mohamed Al Ramahi, Masdar’s CEO, expressed, “Our investment in Terra-Gen’s impressive energy portfolio expands our existing US footprint and reinforces Masdar’s long-term commitment across our US portfolio.”

“We look forward to working alongside Igneo as our valued partner to accelerate Terra-Gen’s growth and deliver world-class innovation at utility scale in support of the global energy transition,” he added.

Terra-Gen offers comprehensive renewable project development, financing, and operational capabilities. Presently, it operates approximately 2.4 gigawatts of wind and solar, and 5.1 gigawatt-hours of energy storage compounds across 32 renewable power sites in the US, predominantly in California and Texas.

The US market is crucial for Masdar as it pursues its goal to establish a global renewable energy portfolio with a capacity of at least 100 gigawatts by 2030. Masdar made its debut investment in the US energy market in 2019 and currently manages a portfolio of utility-scale wind, solar, and storage assets in the US, boasting a generating capacity exceeding 1.4 gigawatts.

Jim Pagano, Terra-Gen’s CEO, expressed enthusiasm, stating, “We are excited to work with Masdar, a like-minded partner with a track record of commitment to decarbonisation and clean energy projects in the US and around the world.”

Established in 2006, Masdar has developed and partnered in projects across over 40 countries. Considering “transformative” acquisitions to bolster its presence in the US and Europe, Masdar’s Chief Operating Officer, Abdulaziz Alobaidli, shared plans with The National in November, expressing interest in these well-developed markets.

Last year, Masdar finalized the acquisition of a 50% stake in the California-based Big Beau project from EDF Renewables. In the UK, the company recently completed the acquisition of a 49% stake in the 3-gigawatt Dogger Bank South project, one of the world’s largest planned offshore wind farms. Additionally, in January, Masdar signed an initial agreement with Germany’s Daimler Truck to explore the feasibility of liquid green hydrogen exports from the UAE to Europe by 2030, aiming for an annual green hydrogen production capacity of up to 1 million tonnes within the next decade.

As the world increasingly recognizes the importance of sustainable development and decarbonization, partnerships like the one between Masdar and Terra-Gen serve as shining examples of collaborative efforts towards a greener, more sustainable future. Through strategic investments and innovative initiatives, these companies are paving the way for a cleaner, more resilient energy landscape, benefiting both present and future generations.

In conclusion, Masdar’s acquisition of a 50% stake in Terra-Gen marks a significant milestone in the journey towards a more sustainable energy future. With a shared vision and a commitment to excellence, Masdar and Terra-Gen are poised to lead the way in driving innovation and advancing clean energy solutions on a global scale.

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