Energy company Masdar, on Tuesday, said it signed an agreement to acquire 50% of stake in United States-based peer Terra-Gen Power Holding II from Energy Capital Partners (ECP), investment capital firm, to expand and retain its footprints in the US renewable energy market.
The transaction is expected to close by the end of 2024, said the firm. Additionally, once the acquisition is completed ECP will fully exit its position in Terra-Gen, while the investment management firm Igneo Infrastructure Partners (Igneo) will retain the existing 50% stake in the company, initially invested in December 2020.
ECP acquired Terra-Gen’s stake in 2015, under which the firm expanded its portfolio of operating assets, said Masdar. Since 2020, Terra-Gen has been under the tenure of Igneo and ECP, where it added over 1 GW (gigawatts) of generating capacity and 5 GWh (gigawatt hours) of storage, and expanded its pipeline of wind, solar and battery storage projects.
Earlier this month, Masdar also acquired 49% shareholding in RWE’s 3 GW planned offshore wind farms Dogger Bank South (DBS) project worth £11 billion ($13.90 billion).
“Upon closing, we look forward to actively partnering with Igneo and working closely with Terra-Gen’s experienced management team to support Terra-Gen’s operations, facilitate its development of new capacity renewable energy projects and expand its presence,” said Philip Haddad, Executive Chief of Masdar Americas.
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