CARROLLTON, OHIO — Advanced Power, the Swiss energy giant, has secured $899 million in financing for a power plant in northeast Ohio set to begin operations in late 2017.
TIAA-CREF, Chubu Electric Power Co., Ullico and Prudential Capital Group are providing $411 million in equity commitments, while BNP Paribas, Credit Agricole and eight other commercial banks are providing $488 million in senior secured credit facilities for construction of the Carroll County Energy plant.
The 700-megawatt plant will sell energy, capacity and ancillary services into all or part of 13 states in the eastern U.S., along with the District of Columbia. It will be powered by natural gas from eastern Ohio’s Utica Shale and could provide electricity to 750,000 homes. Plans for the project were first announced in July 2013 and site work has already begun.
The facility will feature two General Electric 7F.05 gas turbines and a D602 steam turbine, which has the capacity to generate electricity for approximately 750,000 homes.
Bechtel Corp. is building the project under a turnkey construction contract. EthosEnergy will operate the facility and Advanced Power will remain as the construction and asset manager. The new plant will be near Kinder Morgan’s Tennessee Gas Pipeline plus American Electric Power transmission lines.
“The project has received strong support from Carroll County and other key stakeholders in Ohio,” says Advanced Power CEO Thomas Spang. “From the beginning, it was the project’s goal to work closely with the community and to bring in the strongest partners in the industry. This milestone demonstrates the success of that strategy.”
Carroll County Energy is one of a number of projects Advanced Power is developing in the United States and Europe.
“We are pleased to take part in another significant energy project as part of our growing relationship with Advanced Power,” says Marietta Moshiashvili, managing director and head of natural resources and infrastructure originations at TIAA-CREF.
“As we pursue a steady, diversified stream of returns on behalf of our investors, this project represents exactly the type of opportunity our dedicated energy infrastructure team actively seeks out,” says Mario Maselli, senior director within the energy and infrastructure investments team at TIAA-CREF. “A strong management team, consistent long-term returns and a positive economic impact are important criteria in our investment decision-making process.”
Approximately 700 construction jobs will be created during peak construction as well as 20 to 30 permanent jobs during operation, according to Advanced Power.
BNP Paribas and Credit Agricole Corporate and Investment Bank served as coordinating lead arrangers and joint bookrunners in forming a syndicate of 10 institutions to finance the project. Whitehall Capital served as the sponsor’s financial advisor. Morgan Lewis & Bockius served as project counsel.
Advanced Power is a privately owned company established in 2000 to develop independent power projects in North America and Europe. Majority-owned by senior management, Advanced Power has offices in Boston and London and is headquartered in Zug, Switzerland.
— Haisten Willis