Energy Capital Partners (ECP) Completes Acquisition of 892 MW Natural Gas-Fired Cogeneration Portfolio from Fengate Asset Management
Portfolio of cogeneration plants under long-term contracts supplying essential steam and electricity to two critical
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Energy Capital Partners (“ECP”) today announced the completion of its acquisition of an 892-megawatt (“MW”) portfolio of natural gas-fired cogeneration assets located in Texas and Illinois (the “Portfolio”) from Fengate Asset Management (“Fengate”).
The three cogeneration facilities comprising the Portfolio provide critical infrastructure, serving as primary sources of process steam and electricity for two critical integrated petrochemical complexes in the United States. The Portfolio is underpinned by long-term contracts and also benefits from exposure to two of the country’s most attractive power markets, ERCOT and PJM.
The acquisition builds on ECP’s extensive cogeneration experience, having owned and operated more than 9 GW of cogeneration assets through its investments in Calpine, Atlantica, Heartland, and Triton (and a total of 83 GW of power and renewable assets over its history). The Portfolio establishes a scaled industrial cogeneration platform, which it intends to grow through further investment in high-quality natural gas-fired generation assets in ECP’s latest flagship fund.
“As power demand continues to accelerate, we believe existing generation in premier markets will benefit,” said Tyler Kopp, a Partner at ECP. “Tightening reserve margins and the need for new, gas-fired generation has strained supply chains and increased replacement costs, which ultimately increases power prices. Acquiring high-quality, efficient assets with a focus on reliability remains a key focus of ours and we look forward to working with all stakeholders to continue Fengate’s strong stewardship of the Portfolio.”
“This transaction reflects our strategy of identifying high-quality infrastructure opportunities where we can create value through active ownership and disciplined investment,” said Greg Calhoun, Managing Director and Head of Energy Transition at Fengate. “Over six years of ownership, we strategically built and scaled the portfolio, alongside our partners at Ironclad Energy, to strengthen a collection of critical energy infrastructure assets serving major industrial customers. We are pleased to realize value on behalf of our limited partners and believe the portfolio is well positioned to provide reliable steam and power to customers for years to come.”
Latham & Watkins LLP served as legal counsel to ECP. CIBC Capital Markets served as financial advisor to Fengate and Davies Ward Phillips & Vineberg LLP served as legal counsel to Fengate.
About Energy Capital Partners
ECP, founded in 2005 and based in Summit, New Jersey, is a leading investment platform focused on the energy transition, with an emphasis on electricity generation and sustainable infrastructure that delivers reliable, affordable, and secure energy. ECP combines deep domain expertise with a value-added, operationally focused investment approach. Since inception, ECP has secured more than $41 billion in capital commitments from institutional investors globally.
About Fengate Asset Management
Fengate is a leading alternative investment manager focused on infrastructure, private equity and real estate strategies, with more than US$9 billion capital commitments under management. The firm has been investing in infrastructure since 2006 with a focus on mid-market greenfield and brownfield infrastructure assets in the energy transition, digital, social, and transportation sectors. Fengate is one of North America’s most active infrastructure investors and developers with a portfolio of more than 55 infrastructure assets. Learn more at www.fengate.com.
About Ironclad Energy
Ironclad Energy is an independent asset manager that partners with like-minded private and infrastructure equity firms to acquire, own, and operate industrial cogeneration, district energy, peaking and utility generation facilities with the purpose of improving them commercially, technically, financially and/or operationally. The seasoned team of executives has a 25-year proven track record of success with middle market generation and related facilities with over 10,000 MW of hands-on experience.
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