United Arab Emirates-based Masdar has agreed to acquire a 50% stake in US renewables company Terra-Gen Power (Terra-Gen) from Energy Capital Partners (ECP) for an undisclosed amount.

Terra-Gen, established in 2007, has a diverse portfolio of renewable technologies and a presence in the US market, particularly in California and Texas.

Its current operations include 2.4GW of wind and solar power generation and 5.1GWh of energy storage across 32 sites.

Since its acquisition by ECP in 2015, the company has seen substantial growth, tripling its operating renewable assets.

Under the joint stewardship of Igneo and ECP since 2020, the company has added more than 1GW of generating capacity and 5GWh of storage.

It has also expanded its pipeline of wind, solar and battery storage projects, enjoying sustained growth.

With this agreement, Masdar is strategically entering the US renewable energy market.

Masdar CEO Mohamed Jameel Al Ramahi said: “Our investment in Terra-Gen’s impressive energy portfolio expands our existing US footprint and reinforces Masdar’s long-term commitment across our US portfolio.

“This transaction unites one of the largest independent renewable energy producers in the US 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.”

The deal is expected to close by the end of this year, subject to receipt of regulatory and other customary approvals.

Terra-Gen CEO Jim Pagano said: “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 decarbonisation and clean energy projects in the US and around the world.”

Earlier this month, Masdar completed acquiring a 49% stake in the Dogger Bank South offshore wind projects in the UK from German utility RWE.