Masdar to acquire 50% of US renewables firm Terra-Gen Power

UAE renewables giant Masdar signed an agreement to acquire a 50% stake in US renewable energy firm Terra-Gen Power Holdings, according to a statement. The value of the stake — which was purchased from Energy Capital Partners (ECP) — was not disclosed and the acquisition will be finalized by the end of the year.

Who owns what? Masdar will fully acquire ECP’s shares in Terra-Gen while infrastructure investment manager Igneo Infrastructure Partners will keep its 50% stake in the company which it acquired in 2020.

Masdar already has a foothold in the US: Masdar finalized its acquisition of a 50% share in EDF Renewables North America’s 128 MW Big Beau solar plant in California last year. In 2020, Masdar and EDF inked an agreement to jointly co-develop eight US-based renewables plants that would yield a total of 1.6 GW including three wind farms in Nebraska yielding a combined 815 MW and five solar farms — including the newly acquired Big Beau plant — generating some 690 MW of clean energy. The company’s portfolio in the US currently consists of four wind projects in Texas and New Mexico and five solar projects in California.

The company’s overseas portfolio is expanding: The renewables giant reached financial close on EUR 488 mn in funding to secure its 49% acquisition of the 476 MW Baltic Eagle wind farm off the coast of Germany earlier this week. Masdar is also eyeing an undisclosed stake in Turkish wind producer Fiba Yenilenebilir Enerji and a majority stake in India’s Ayana Renewable Power.

About Terra-Gen Power: Established in 2007, Terra-Gen is a leading independent provider of end-to-end renewable project development, financing and operating capabilities. Terra-Gen currently operates approximately 2.4 GW of wind and solar, and 5.1 GWh of energy storage facilities across 32 renewable power sites.

Advisors: BMO Capital Markets and JP Morgan are serving as financial advisors and White & Case and Covington & Burling are serving as legal advisors to Masdar. Lazard and Guggenheim Securities are serving as financial advisors and Latham & Watkins is serving as legal advisor to Terra-Gen.