Japan’s Jera, through its wholly owned subsidiary Jera Americas, has agreed to acquire stakes in three natural gas-fired thermal power generation projects in the Northeastern US.
Image: The Marcus Hook Energy Center in US. Photo: courtesy of Starwood Energy Group.
Under the agreement, signed with Starwood Energy Group, Jera will acquire 50% stake in three natural gas-fired power plants with combined capacity of 1,123MW. Financial terms of the deal were undisclosed.
The projects being acquired include the Marcus Hook Energy Center located in suburban Philadelphia, as well as the Dighton and Milford Energy facilities situated in Massachusetts.
Power and capacity produced from the Marcus Hook Energy Center is sold into the PJM Interconnection (PJM) wholesale electricity market.
The power plant also has a contract for capacity with the Long Island Power Authority, a power distribution utility.
On the other hand, power and capacity from the two other facilities is sold into the ISO New England (ISO-NE).
Earlier this year, JERA acquired 50% stake in 972MW Linden Cogeneration Facility, a natural gas-fired thermal power cogeneration complex in northern New Jersey.
The firm acquired the facility from funds managed by Oaktree Capital Management, and Ares Management, and their respective co-investors.
Power generated from the Linden cogeneration facility is sold to the wholesale electricity market in the State of New York as well as the PJM Interconnection, the wholesale electric market.
Jera expects the latest acquisition would increase its net ownership of electric generation in North America to approximately 3,536MW, representing it one of the largest ownership positions for a Japanese-affiliated company.
Jera senior executive vice-president Toshiro Kudama said: “JERA is committed to significantly expanding our long-term presence in North America by using a disciplined approach to build a portfolio of gas-fired and renewable generation facilities.
“These plants are all in excellent locations close to customer demand and are strong additions to our growing portfolio.”
The acquisition is part of the firm’s effort to expand its overseas power generation business.
Jera is an equal joint venture of Tepco Fuel & Power and Chubu Electric Power Company.