Clean energy and climate action in the limelight as Masdar closes acquisition of 50% stake in Terra-Gen
Masdar, the UAE’s clean energy company, recently announced the closing of its acquisition of a 50% stake in Terra-Gen, one of the largest independent clean energy producers in the US, from Energy Capital Partners. Igneo Infrastructure Partners retains the other half.
Representing one of Masdar’s largest transactions, the deal further cements the company’s position in the US. Masdar first entered the market in 2019 and has been playing a big role in funding, developing and operating clean energy projects in the country.
UAE-US partnership for accelerating clean energy
Masdar’s commitment to the US market represents the strong UAE-US bilateral relations. In November 2022, both countries decided to collaborate deeper to fight climate change, fund clean energy technology and deepen bilateral cooperation.
The UAE-US Partnership for accelerating Clean Energy (Pace) is set to mobilise $100 billion by 2035. The landmark agreement seeks to catalyse investment and support across four areas:
1. Clean energy innovation, financing, deployment and supply chains
2. Nuclear energy
3. Industrial and transport decarbonisation
4. Carbon and methane management
The Pace deal represents a commitment by major global energy producers to a responsible energy transition. Focusing on elevating climate action, the agreement seeks to unlock joint investment and opportunities in emerging economies.
Masdar supporting target set by UAE Consensus from COP28
Established in 2006, Masdar has a long-standing commitment to advancing clean energy projects globally. The acquisition of a 50% stake in Terra-Gen represents a significant milestone as the company put in efforts to support the target set by the UAE Consensus.
The UAE hosted the annual COP28 climate conference in Dubai last November, convening thousands of people. It recorded an early success on its first day itself as participants agreed to operationalise the prominent Loss and Damage Fund to compensate vulnerable countries.
