Masdar, the UAE's clean energy company, has signed a deal to acquire a 50% stake in Terra-Gen Power Holdings II, (Terra-Gen), one of the largest independent renewable energy power producers in the US.

Masdar will acquire the stake in Terra-Gen from UK-based Energy Capital Partners (ECP), an equity and credit investor. ECP will exit its position in Terra-Gen in connection with the transaction.

Igneo Infrastructure Partners (Igneo), a global infrastructure investment manager, will retain its existing 50% stake in the company.

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

"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," Philip Haddad, President and CEO of Masdar Americas, said.

Under Igneo and ECP, since 2020, 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.

Masdar is jointly owned by Abu Dhabi National Oil Company (ADNOC), Mubadala Investment Company (Mubadala), and Abu Dhabi National Energy Company (TAQA). Masdar is targeting a renewable energy portfolio capacity of at least 100 gigawatts (GW) by 2030.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Daniel Luiz)