Jera will acquire a 50% interest in Linden Cogen, which operates the 972MW natural gas-fired thermal power cogeneration complex located in the State of New Jersey, US.
Under the terms of the deal, Jera, through its wholly-owned subsidiary JERA Power, will acquire the stake from funds managed by Oaktree Capital Management, and Ares Management, and their respective co-investors.
The acquisition is part of Jera’s efforts to actively participate in energy projects to strengthen its position in the energy market. Financial terms of the deal were undisclosed.
Jera senior executive vice-president Toshiro Kudama said: “Jera believes our expertise including parent companies gained from operating approximately 70GW worldwide will add value to Linden.”
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.
Power and steam produced from the power generation facility is supplied for industrial use under long-term contracts.
Jera said that the additional unit is planned for construction at the Linden facility. This would present a further investment opportunity for Jera and its partners.
Ares EIF Group partner Warren MacGillivray said: “We are excited to partner with JERA on Linden and believe JERA’s expertise in this industry will be invaluable to Linden’s operations and future initiatives.”
Featuring six gas-fired turbines and three steam turbines, the Linden Cogen was commissioned in 1992.
Image: Power generated from thermal electric generator plant is sold to the wholesale electricity market. Photo: courtesy of khunaspix/ FreeDigitalPhotos.net.