The Abu Dhabi Future Energy Company known as Masdar in the UAE has bought a 50 percent stake in Terra-Gen, one of the largest independent renewable energy producers in the United States, from Energy Capital Partners. Masdar is the same company that created the ambitious but failed zero-energy city outside of Abu Dhabi.
ECP is one of the largest private investors in power and renewable assets in the United States says it has fully exited its position in Terra-Gen in connection with the closing of the transaction. Igneo Infrastructure Partners, a global infrastructure investment manager, retains its existing 50 percent stake in Terra-Gen.
Representing one of Masdar’s largest transactions to date (find some of its recent deals featured here on Green Prophet), the deal further cements Masdar’s move into the US market, which it first entered in 2019. It also partnered with the EU to release green bonds in 2020.
Before the Terra-Gen acquisition, Masdar’s US portfolio of utility scale wind, solar and storage assets had a generating capacity of more than 1.4GW. The US market and Terra-Gen’s scalable platform will play important roles as Masdar executes its plan to build 100GW of capacity in its global renewable energy portfolio by 2030. Also it is important for the UAE to develop strong business ties with the west as it looks to distance itself from unstable regimes such as the Iranian Islamic Republic, and countries like Turkey which are aligning with Russia in energy production such as nuclear.
While Qatar funds terror and unrest, the UAE has become a partner that the west can trust.
Terra-Gen’s gross operating portfolio currently comprises 3.8GW of wind, solar and battery storage projects, including 5.1GWh of energy storage facilities across 30 renewable power sites throughout the US, predominantly in California and Texas.
Terra-Gen is currently developing more than 12GW of wind, solar and battery storage projects in the US, with its projects in California, Texas and New York, including a 386MW of Texas wind and California solar project, and 512MWh of California energy storage facilities, with commercial operations anticipated in 2025.
Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology, Chairman of Masdar, says: “The UAE and U.S. have long been partners in efforts to advance clean energy, a collaboration culminating in the Partnership for Accelerating Clean Energy (PACE) agreement.
“Masdar has a strong track record of supporting US renewable energy projects, and the acquisition of Terra-Gen reaffirms this long-standing commitment. We are now on target to surpass our goal of having 10GW of integrated renewable generation capacity in the US by 2030.
Mohamed Jameel Al Ramahi, the CEO of Masdar says: “Terra-Gen’s experienced management team and scalable platform make it the ideal partner, as we work to increase our presence and investment in the US as part of Masdar’s commitment to a long-term strategy in this important market.”
Masdar’s commitment to the US market reflects the UAE’s strong ties to the country. In January 2023, UAE and US officials announced that US$20 billion will be allocated to fund 15GW of clean energy projects in the US before 2035, led by Masdar and a consortium of US private investors, under the Partnership for Accelerating Clean Energy (PACE) between the two countries. Earlier this year Microsoft invested $1.5 Billion USD to co-develop AI with G42, a UAE based company now working with Nvidia to build weather forecasting models to combat climate change with AI.
