ArcLight Assumes Majority Ownership of Kleen Energy Systems
The Boston-based investment firm acquires the 620 MW natural gas-fired plant in Middletown, CT.
ArcLight Capital Partners (ArcLight) has entered into a purchase agreement with Sojitz Corporation of America to acquire Kleen Energy Systems, including 100 percent of the preferred equity and a minority common equity interest. Kleen is the owner of a 620 MW natural gas-fired plant in Middletown, CT.
Kleen Energy is a natural gas combined-cycle plants that opened in July 2011, providing the region with critical capacity, energy, and ancillary services.
"Kleen builds upon ArcLight's focus on the electrification megatrend and on supporting the energy grid of the future, which we expect to include a complementary mix of renewable resources and reliable, low carbon power infrastructure," said Dan Revers, Managing Partner and Founder of ArcLight. "The high-quality asset provides critical infrastructure and grid stability services as one of the core power suppliers in the New England market."
Connecticut Light & Power has structured a capacity supply agreement with Kleen Energy. Kleen benefits from an advantaged market heat rate and a dual-fuel capability that permits on-demand output into the New England Market.
The transaction between ArcLight and Sojitz is expected to close in the final quarter of 2023, pending regulatory approvals. Latham & Watkins LLP is serving as legal counsel to ArcLight; Mintz is serving as legal counsel to Sojitz.
