Ara Energy to acquire Gate City Power, Gate City Renewable Fuels, and interest in JET retail network for $875M

Ara Energy, the Madrid-based renewable energy developer with 4.5 GW of solar and wind projects across seven European countries, is making an $875M move into U.S. thermal generation and biofuels. This announced acquisition, dated 2026-03-11, includes 2.2 GW of U.S. thermal generation capacity in NYISO/ISO-NE and 400M gal/yr of U.S. ethanol production. The deal also encompasses an interest in approximately 970 JET retail network fuel stations, diversifying Ara Energy's portfolio beyond its established European solar and wind assets. For Ara Energy, whose parent Ara Partners focuses on industrial decarbonization, this acquisition of gas-fired assets and ethanol production suggests a strategy to integrate diverse energy sources or establish a multi-faceted presence in the U.S. energy market. HF Capital, a New York-based independent investment management firm, is a seller in this transaction, divesting infrastructure assets from its alternative investment focus. Gate City Power, a Fergus Falls, USA-based electric utility serving 132,500 customers across Minnesota, North Dakota, and South Dakota, is offloading 2.2 GW of thermal generation. Concurrently, Greensboro, NC-based Gate City Renewable Fuels, a developer of waste-to-energy RNG projects, is selling its 400M gal/yr U.S. ethanol production capacity. Ara Infrastructure, the Houston-based dedicated infrastructure strategy of Ara Partners, manages $2.8 billion in its first infrastructure fund, providing capital backing for Ara Energy's cross-sector and cross-border expansion. The acquisition of an interest in the JET retail network, a brand of over 1,000 fuel stations owned by Phillips 66 across six European countries, adds a downstream component to Ara Energy's evolving asset base.