Abu Dhabi Future Energy Company (Masdar) has signed a definitive agreement to acquire a 50% stake in Terra-Gen Power Holdings II, one of the largest independent renewable energy producers in the United States.

Energy Capital Partners (ECP), a leading investor across energy transition, electrification and decarbonization infrastructure assets, will fully exit its position in Terra-Gen in connection with the transaction. Igneo Infrastructure Partners, a global infrastructure investment manager, will retain its existing 50% stake. Igneo made its initial investment in Terra-Gen in December 2020.

Lazard and Guggenheim Securities are serving as financial advisers to Terra-Gen. Latham & Watkins is the legal adviser.

BMO Capital Markets and J.P. Morgan are serving as financial advisers to Masdar, with White & Case and Covington & Burling act as legal advisers. Mayer Brown is legal adviser to Igneo.

Established in 2007, Terra-Gen is a leading independent provider of end-to-end renewable project development, financing and operating capabilities. The company currently operates approximately 2.4 gigawatts of wind and solar, and 5.1 gigawatt-hours of energy storage facilities across 32 renewable power sites throughout the US, predominantly in California and Texas.

Masdar’s experience in funding, developing, owning and operating clean energy projects around the world supports Terra-Gen’s ambitions to grow its renewable capacity and portfolio in the US.

Masdar first invested in the US energy market in 2019. Its US portfolio of utility-scale wind, solar and storage assets has a generating capacity of more than 1.4 GW.  Masdar said that the US market will play an important role as it executes its plan to build a global renewable energy portfolio with at least 100 GW capacity by 2030.

Terra-Gen was originally acquired by ECP in 2015, and under its ownership, Terra-Gen more than tripled its portfolio of operating renewable assets. Since 2020, under Igneo and ECP, Terra-Gen has added over 1 GW of generating capacity and 5 GWh of storage, expanded its pipeline of wind, solar and battery storage projects, and enjoyed sustained growth.

The transaction is expected to close by the end of 2024, subject to regulatory and other customary approvals.