The plant produces adequate energy to power 750,000 households across central Texas
Temple 1 power plant in Temple, Texas. (Credit: Banpu Power Public Company Limited)
US-based gas producer BKV, in partnership with Banpu Power US, has agreed to acquire the 768MW Temple 1 power plant in Temple, Texas, US for $430m.
The acquisition includes Temple Generation Intermediate Holdings II, which owns the Temple 1 power plant, through its subsidiary Temple Generation I.
The transaction is expected to be completed in the fourth quarter of 2021, subject to certain customary closing conditions.
Temple Generation I has been operating the Temple 1 power generation facility since it was brought into service in 2014.
BKV CEO Chris Kalnin said: “We’re excited about this acquisition, and the strategic steps we are taking to position BKV as a leading integrated energy company with cleaner, greener energy.
“By extending our natural gas business into a power business we are able to deliver to unprecedented grid reliability, while also creating industry leading ESG standards because we can directly certify our emissions footprint at each step in the value chain, from underground molecule to burner tip.”
The power generation facility is equipped with modern and flexible combined cycle turbines, and features advanced emissions-control technology.
According to BKV, it is one of the few power plants that operated throughout Storm Uri, providing critically required power to the ERCOT grid during the peak of storm in February this year.
Located on 250 acres adjacent to the Interstate-35 corridor, the plant produces adequate energy to power 750,000 households across central Texas.
The acquisition is part Banpu Power’s strategy to expand its capacity to 5.3GW by 2025.
With the investment in the Temple 1 power facility, the company has a total equity-based capacity of 3.3MW.
BKV is a natural gas producer in the US, which owns natural gas operating assets in the northeast Marcellus Shale in Pennsylvania and in the Barnett Shale in North Texas.