Stark Power entered into a definitive agreement to acquire the Cottage Grove energy campus near Cottage Grove, Minnesota, from Ultra Capital and Panamint Capital.
The property is located approximately 20 miles southeast of Minneapolis and is interconnected with the MISO wholesale electricity market.
The campus includes an operating 262 MW natural gas-fired combined-cycle power plant and a planned 80 MW / 320 MWh battery energy storage project.
The power plant is currently contracted with Northern States Power Company, a subsidiary of Xcel Energy.
Beginning in December 2027, the plant is expected to transition to a 15-year tolling agreement with Basin Electric Power Cooperative that runs through 2043.
The facility also supplies steam to an adjacent 3M manufacturing site.
The planned battery system will use the site’s existing grid interconnection and is expected to begin commercial operations in 2028.
The battery project is contracted under a 15-year tolling agreement with Northern States Power Company.
The acquisition establishes Stark Power’s second U.S. growth platform following its earlier acquisition of Sagebrush Infrastructure Partners, which established its U.S. data center infrastructure business.
Stark has also completed equity raises and secured an $85 million corporate credit facility with Bank Hapoalim since its formation and listing on the Tel Aviv Stock Exchange in March 2026.
The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions.
Orrick, Herrington & Sutcliffe served as legal counsel and Verdonck Partners served as financial advisor to Stark Power.
KEY QUOTES:
“Cottage Grove is exactly the kind of asset Stark Power has been targeting. It combines operating and reliable generation near a major load center with long-term contracted revenues and a co-located storage project using the same site and interconnection. Since launching Stark in March, we have built the balance sheet, institutional backing and operating platforms to pursue opportunities such as this one, and we believe Cottage Grove is a strong foundation for the continued growth of our U.S. power generation segment.”
Michael Avidan, Chief Executive Officer of Stark Power
