A consortium consisting of Basalt Infrastructure Partners and DCO Energy has entered into an agreement to acquire Detroit Renewable Energy (DRE).
Financial terms related to the acquisition were not disclosed.
Detroit Renewable Energy in an integrated renewable energy system that was formed in 2010. It includes companies such as Detroit Thermal, Detroit Renewable Power and Hamtramck Energy Services. The companies claim to offer the city of Detroit with clean energy and waste disposal services in a cost-effective way.
For over 100 years, Detroit Thermal, an underground district energy heating system has been offering heating services to landmark buildings and businesses in the city.
Basalt managing partner Rob Gregor said that the acquisition of DRE is an important step in the company's strategy to expand in core infrastructure assets in utility, energy and transport sectors.
The acquisition will not affect DRE’s usual business. The company will continue to operate from Detroit, with its present management team. In the long term, Basalt claims to have plans to invest in DRE to improve its services. Acquiring DRE can also add the experience of providing district energy systems to Basalt.
Detroit Renewable Energy president Steve White said: “Detroit Renewable Energy has played a key role in Detroit’s renaissance over the past seven years. In partnership with Basalt & DCO, the company will be in an even stronger position to support the City’s growth and success for many years to come.
“This will benefit all stakeholders as Basalt & DCO possess the experience, expertise and resources to partner with the community and build upon our strong record of delivering clean, reliable and cost-effective renewable energy to critically-important businesses across the City of Detroit.”
DCO Energy CEO Frank DiCola said: “DRE and its customers will benefit from the technical and financial resources associated with being part of a company that is focused on the district energy business. The acquisition is a positive development for the Detroit employees, customers and the communities served by DRE.
“DRE customers will continue to be served locally by experienced staff at the central plants, but they will gain the financial support and expertise of a large, national company that is focused on providing energy services.”