Masdar Acquires 50% Stake in Terra-Gen. The Advisors 

Masdar, the Abu Dhabi Future Energy Company, has made significant strides in expanding its presence in the United States’ renewable energy market. The company has inked a definitive agreement to purchase a 50 percent stake in Terra-Gen Power Holdings II, a major independent renewable energy power producer in the U.S., from Energy Capital Partners (ECP). 

Terra-Gen, established in 2007, boasts a strong track record in renewable project development and operations. With around 2.4 GW of wind and solar power and 5.1 GWh of energy storage spread across 32 sites in the U.S., particularly in California and Texas, Terra-Gen’s portfolio aligns well with Masdar’s clean energy goals. 

Masdar’s investment in Terra-Gen signifies its continued commitment to the U.S. renewable energy market and its ambition to expand its global clean energy portfolio. This move also supports Masdar’s target of achieving 100 GW of renewable energy capacity by 2030. 

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: ”Our investment in Terra-Gen’s impressive energy portfolio expands our existing U.S. footprint and reinforces Masdar’s long-term commitment across our U.S. portfolio. This transaction unites one of the largest independent renewable energy producers in the U.S. with Masdar – one of the fastest growing clean energy companies in the world. We look forward to working alongside Igneo as our valued partner to accelerate Terra-Gen’s growth and deliver world-class innovation at utility scale in support of the global energy transition.”

Philip Haddad, President and CEO of Masdar Americas, commented: “We’ve been impressed by Terra-Gen’s record, scalable platform of operating assets and realizable project pipeline underpinning its growth trajectory. 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 in and beyond its key markets.”

Jim Pagano, CEO of Terra-Gen, added: “Terra-Gen is committed to developing responsible energy projects that benefit local communities and future generations. We have enjoyed a tremendous partnership with ECP, which allowed us to build a strong and resilient business positioned for long-term growth. As we look to build on our tangible pipeline of projects, we are excited to work with Masdar, a like-minded partner with a track record of commitment to decarbonization and clean energy projects in the U.S. and around the world.”

The transaction, expected to close by the end of 2024 pending regulatory approvals, marks a significant milestone in Masdar’s journey towards enhancing renewable energy infrastructure globally.  

The advisors

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

The White & Case team was led by partners Raymond Azar, Ipek Candan Snyder, Scott Fryman, Raffaele Montenero Turco, Steven Lutt (all in New York); Rebecca Farrington, Heather Greenfield and Jeffrey Davis (all in Washington, DC); Taylor Pullins (Houston); counsel Samantha Rozell (Chicago); associates Luisa Muskus and Sam McCombs (both in Houston); Tyrone Crawford and John Forbush (both in Washington, DC); international law clerk Adam Conwell and Latin America fellow Maria Pinto (both in New York).

Latham & Watkins team was led by New York partners David Kurzweil and Jane Greyf and New York counsel Alyssa Galinsky, with associates Daley King, Jordan Wampler, Sofia Skara, and Jonathan Kow.