- Masdar's joint ownership of Terra-Gen
demonstrates long-term commitment to investing in and supporting
U.S. energy transition
- Terra-Gen's gross operating portfolio comprises 3.8GW of
wind, solar and battery storage projects, including 5.1GWh of
energy storage facilities across 30 renewable power sites
- Terra-Gen's 12GW+ pipeline includes new windfarm and
new solar park to start commercial operations in 2025
ABU DHABI, UAE, Oct. 1, 2024 /PRNewswire/ -- Abu Dhabi
Future Energy Company PJSC – Masdar ("Masdar"), the
United Arab Emirates' clean energy
powerhouse, today announced the closing of its acquisition of a 50
percent stake in Terra-Gen Power Holdings II, LLC ("Terra-Gen" or
"the Company"), one of the largest independent renewable energy
producers in the United States,
from Energy Capital Partners ("ECP").
ECP, one of the largest private investors in power and renewable
assets in the United States, has
fully exited its position in Terra-Gen in connection with the
closing of the transaction. Igneo Infrastructure Partners
("Igneo"), a global infrastructure investment manager, retains its
existing 50 percent stake in Terra-Gen.
Representing one of Masdar's largest transactions, the deal
further cements Masdar's position in the U.S. Masdar first entered
the market in 2019 and has a proven history of funding, developing,
owning and operating clean energy projects in the country. Before
the Terra-Gen acquisition, its U.S. portfolio of utility scale
wind, solar and storage assets had a generating capacity of more
than 1.4GW. The U.S. 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.
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 U.S., predominantly in California and Texas.
Terra-Gen is currently developing more than 12GW of wind, solar
and battery storage projects in the U.S. Its development activities
include projects in California,
Texas and New York. The project pipeline includes 386MW
of Texas wind and California solar, and 512MWh of California energy storage facilities, with
commercial operations anticipated in 2025.
HE Dr. Sultan Al Jaber, UAE
Minister of Industry and Advanced Technology, COP28 President and Chairman of Masdar, said:
"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 U.S. 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 U.S. by 2030. This
transaction unlocks further economic opportunities from green
growth, and aligns with the global ambition to triple renewable
energy capacity, in line with the historic UAE Consensus reached at
COP28."
Mohamed Jameel Al Ramahi, Chief
Executive Officer of Masdar, said, "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 U.S. as part
of Masdar's commitment to a long-term strategy in this important
market. We look forward to partnering with Igneo to enhance
Terra-Gen's capabilities and position it as a leading developer,
owner and operator of reliable and clean renewable energy in the
U.S."
Jim Pagano, CEO of Terra-Gen,
said, "The finalization of this deal cements a strong relationship
between Masdar and Terra-Gen. Masdar is a great partner for
Terra-Gen because of our shared focus on developing clean energy
projects and our commitment to decarbonization. We look forward to
working with them to expand and build on our pipeline of U.S.
projects."
Niall Mills, Managing Partner and
Global Head of Igneo, said, "Terra-Gen has been a strong platform
for Igneo in the U.S. since our investment in 2020. We see
tremendous potential to continue driving growth and creating
long-term value in the U.S. renewable power sector through the
capable and experienced team at Terra-Gen, and we look forward to
partnering with Masdar on this exciting next phase of
expansion."
Established in 2006, Masdar has a long-standing commitment to
advancing renewable energy projects across the globe. The purchase
of a 50% share in Terra-Gen represents another significant
milestone as the company works to support the target set in the
historic UAE Consensus to triple global renewables capacity by the
end of this decade.
Masdar's commitment to the U.S. market reflects the UAE's strong
ties to the country. In January 2023,
UAE and U.S. officials announced that US$20
billion will be allocated to fund 15GW of clean energy
projects in the U.S. before 2035, led by Masdar and a consortium of
US private investors, under the Partnership for Accelerating Clean
Energy (PACE) between the two countries.
Transaction Advisors
Lazard and Guggenheim Securities are serving as financial
advisors, and Latham & Watkins LLP is serving as legal advisor
to Terra-Gen. BMO Capital Markets and JP Morgan are serving as
financial advisors, and White & Case LLP and Covington &
Burling LLP are serving as legal advisors to Masdar. Mayer Brown is
serving as legal advisor to Igneo Infrastructure Partners.
About Masdar:
Masdar (Abu Dhabi Future Energy Company) is one of the world's
fastest-growing renewable energy companies. As a global clean
energy pioneer, Masdar is advancing the development and deployment
of solar, wind, geothermal, battery storage and green hydrogen
technologies to accelerate the energy transition and help the world
meet its net-zero ambitions. Established in 2006, Masdar has
developed and invested in projects in over 40 countries with a
combined capacity of over 20 gigawatts (GW), providing affordable
clean energy access to those who need it most and helping to power
a more sustainable future. Masdar is jointly owned by TAQA, ADNOC,
and Mubadala, and is targeting a renewable energy portfolio
capacity of 100GW by 2030 while aiming to be a leading producer of
green hydrogen by the same year.
For more information please visit: https://www.masdar.ae and
connect: facebook.com/masdar.ae and twitter.com/masdar
About Terra-Gen:
Terra-Gen, LLC is a leading U.S. developer, owner and operator of
utility-scale renewable energy projects in North America. Terra-Gen's gross operating
portfolio comprises 3.8GW of wind, solar and battery storage
projects, including 5.1GWh of energy storage facilities across 30
renewable power sites throughout the U.S., predominantly in
California and Texas. Formed in 2007, Terra-Gen is owned
by Abu Dhabi Future Energy Company PJSC – Masdar ("Masdar"), the
United Arab Emirates' clean energy
powerhouse, and Igneo Infrastructure Partners, a leading global
investment manager with US$19.5
billion in direct infrastructure assets. For more
information, visit www.terra-gen.com.
About Igneo Infrastructure Partners:
Igneo is an autonomous investment team in the First Sentier
Investors Group. It invests in high-quality, mature, mid-market
infrastructure companies in renewables, digital infrastructure,
waste management, water utilities and transportation / logistics
sectors in North America, the UK,
Europe, Australia and New
Zealand. Operating since 1994, the team works closely with
portfolio companies to create long-term sustainable value through
innovation, a focus on responsible and proactive asset management.
As of June 30, 2024, Igneo managed
more than US$19.2 billion in assets
for 200 investors around the world. For more information visit
igneoip.com.
About ECP:
Energy Capital Partners (ECP), founded in 2005, is a leading
equity and credit investor across energy transition,
electrification and decarbonization infrastructure assets. The ECP
team, comprised of 90 people with 800 years of collective industry
experience, deep expertise and extensive relationships, has
consummated more than 100 equity (representing nearly US$60 billion of enterprise value) and over 20
credit transactions since inception. For more information,
visit www.ecpgp.com.
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