An affiliate of ArcLight Capital Partners announced it has entered into a definitive purchase agreement to acquire 100% of the equity ownership interests in Clean Energy Future Lordstown. Lordstown owns and operates a highly efficient 940 MW combined cycle gas-fired power facility based in Warren, Ohio. The financial terms of the private transaction were not disclosed.
Following the closing, ArcLight affiliate Alpha Generation will manage Lordstown in conjunction with its incumbent fleet of flexible, fast-ramping power infrastructure. Commencing operations in October 2018, Lordstown is one of the newest and most efficient natural gas combined cycle power plants in the US, with access to an advantaged gas supply. Lordstown operates as a baseload facility with a high-capacity factor, high levels of reliability, and a strong operational and safety track record – offering reliable and dispatchable energy supply to the PJM market, the largest competitive wholesale electricity market in the US.
Following the closing of the deal, AlphaGen will oversee the strategic, commercial, and operational activities of Lordstown.
The deal is expected to close in 2024, subject to regulatory approvals. And Latham & Watkins LLP is serving as legal counsel to ArcLight.
KEY QUOTES:
“We expect Lordstown to play a critical role in providing reliable and affordable power to a tightening market experiencing significant demand growth driven by electrification and the proliferation of data centers. Highly efficient resources such as Lordstown are vital to the integration of renewable energy resources and ensuring the progression of the clean energy transition.”
– Dan Revers, Managing Partner at ArcLight
“ArcLight is excited to announce this strategic investment as part of our continued value-added strategy targeting electrification infrastructure, including renewables, battery storage, and low carbon power infrastructure. ArcLight and AlphaGen are focused on positioning Lordstown to support and benefit from a sustainable, durable transition to a low-carbon future.”
– Andrew Brannan, Managing Director at ArcLight
“AlphaGen looks forward to including the high quality Lordstown facility in its managed portfolio of flexible gas-fired generation critical to an effective clean energy transition. With this addition, our footprint increases to nearly 14 GW of power infrastructure, further broadening our market exposure to a region experiencing high load growth. We are eager to continue our active participation in the ongoing PJM market transition.”
– Mike Bruneau, EVP of Corporate Development and Strategy at AlphaGen
