Japanese Quartet Buys US Power Plant

Four Japanese companies have together bought majority stake in Kleen Energy, a natural gas-fired power plant in Middletown, Connecticut from funds managed by Ares EIF Management, the four companies said in separate statements May 15.

Japan’s Osaka Gas, via its US subsidiary Osaka Gas USA, has agreed to acquire 24.3% ownership, while other investors in the project are Kyushu Electric Power Co (20.25%), Sojitz Corporation (20.25%) and  Chugoku Electric Power Co (16.2%). The remaining 19% stake remains with the existing investor.

Kleen Energy is an approximately 620MW gas-fired power plant that has been in operation since July 2011. The facility has a long-term capacity agreement with a local utility. In a separate statement issued the same day, Ares said that it has created a new investment vehicle to manage Kleen Energy on behalf of four strategic investors.

This is Sojitz’s and Kyushu’s second power generation project in the US following last year’s investment in the 450 MW Birdsboro power plant in Pennsylvania. Tokyo Gas too has a stake in the power plant. The facility is currently under construction and is expected to enter commercial operations in mid-2019.