An affiliate of ArcLight Capital Partners, LLC has completed its acquisition of indirect ownership interests in Kleen Energy Systems, LLC – including 100 percent of the preferred equity and a minority common equity ownership interest – from Sojitz Corporation of America. Kleen owns a 620-megawatt natural gas-fired power plant located in Middletown, Connecticut. Financial terms of the private transaction were not disclosed.
“At ArcLight, we view electrification as a key driver of the energy transition, with electricity demand increasing significantly over the next two decades,” said Dan Revers, Managing Partner and Founder of ArcLight. “The efficient and dispatchable output provided by Kleen will help maintain critical infrastructure and grid stability for the New England market throughout this period.”
Completed in July 2011, Kleen is one of New England’s newest natural gas combined-cycle plants, providing critical capacity, energy, and ancillary services. In a region with significant expected load growth driven by electrification, the output provided by Kleen will allow the integration of intermittent renewable resources into the New England electricity market over the coming decades.
Kleen benefits from stable cash flows under a capacity supply agreement with Connecticut Light & Power, as well as an advantaged market heat rate and dual fuel capability that allows reliable, dispatchable output into the New England market.
Latham & Watkins LLP served as legal counsel to ArcLight.
ArcLight Capital Partners, LLC is an experienced, middle-market, value added infrastructure investment firm. Founded in 2001, ArcLight helped establish infrastructure as an asset class by pioneering an asset-based private equity approach to investing in infrastructure and has since built an experienced and successful investment platform. Based in Boston, ArcLight’s investment team employs a value-added, operationally intensive investment approach that benefits from its dedicated in-house technical, operational, and commercial specialists and partners, as well as the firm’s approximately 1,900-person asset management operational partner. More information about ArcLight can be found at www.arclight.com.