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Masdar to acquire 50% stake in US clean energy company Terra-Gen

Financials of the acquisition are expected to close by the end of the year.

Masdar to acquire 50% stake in US clean energy company Terra-Gen
[Source photo: Anvita Gupta/Fast Company Middle East]

Abu Dhabi state-owned renewable energy firm Masdar has been eyeing potential acquisition targets in the US for some time.

In an earlier interview with Reuters, Masdar’s chief financial officer, Niall Hannigan, said, “We plan to grow significantly in the North America market, in the US,” adding it “is very much a market where M&A is going to be absolutely critical.”

True to this plan, Masdar has now signed on to acquire a 50% stake in Terra-Gen, the US-based renewable energy power producer—one of the largest in its industry in the US.

The acquisition’s financials are expected to close by the end of 2024, but further details have yet to be disclosed.

“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,” said Mohamed Al Ramahi, CEO of Masdar.

Last November,  the UAE and the US agreed to spend $100 billion on clean energy projects to add 100 gigawatts globally by 2035.

Terra-Gen operates around 2.4 gigawatts of wind and solar and 5.1 gigawatt-hours of energy storage compounds across 32 renewable power sites in the US, mainly in California and Texas.

Established in 2007, Terra-Gen falls under New Jersey-based Energy Capital Partners, who, following the transaction, will step down from its position in the company. The infrastructure investment manager Igneo Infrastructure Partners will keep its 50% stake in Terra-Gen.

Masdar is also expanding in Europe, Gulf Arab countries, and elsewhere. Last year, the company signed an agreement to advance the development of clean energy projects in Malaysia.

Established in 2006, Masdar targets a renewable energy portfolio capacity of at least 100 GW and an annual green hydrogen production capacity of up to 1 million tonnes by 2030.

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