Financial close reached for $1.584 Billion Energy Center in Dover, New York

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Financial close reached for $1.584 Billion Energy Center in Dover, New York

Cricket Valley Energy Center, LLC, has announced the successful financial close for the construction of the US$1.584 billion Cricket Valley Energy Center, a fully-permitted approximately 1,100-MW combined-cycle natural gas electric generating facility located in Dover, New York.

Cricket Valley Energy Center is strategically located adjacent to the Iroquois natural gas pipeline and will sell energy, capacity, and ancillary services to the New York Independent System Operator (NYISO) energy market with interconnection through Con Edison’s nearby 345 kV transmission line. The facility will use General Electric gas power equipment to produce enough electricity to power approximately one million homes in the Hudson Valley.

Bechtel, a company focused in the design and execution of complex power projects for more than 60 years, will undertake the engineering, procurement, and construction of the energy center. The facility is slated for completion in the first quarter of 2020. The project will create 1,100 jobs during its peak construction period and 80 permanent and indirect jobs when the facility is operational. Advanced Power AG, which led the development of the facility, will be the construction and asset manager.

The investors in this project, who are providing US$709 million in equity commitments, include JERA Co., Inc. (half-owned by each of Chubu Electric Power Company and TEPCO Fuel & Power); TIAA Investments; Advanced Power AG; BlackRock Financial Management Inc.; Development Bank of Japan, Inc.; and NongHyup Financial Group (under the direction of the National Agricultural Cooperative Federation of Korea).

Additionally, GE Energy Financial Services, Inc.; BNP Paribas; Crédit Agricole Corporate and Investment Bank; Bank of America, N.A.; CIT BANK, N.A; Industrial Bank of Korea; Shinhan Bank, New York Branch; Industrial and Commercial Bank of China Limited, New York Branch; NongHyup Financial Group; National Australia Bank Limited; Siemens Financial Services, Inc.; and Sumitomo Mitsui Banking Corporation are providing US$875 million in funded debt facilities.

Advanced Power AG CEO, Thomas Spang said:

“As lead developer of the project, Advanced Power AG is proud to have delivered a project that meets New York’s stringent regulatory standards and has the support of the local community. Advanced Power AG is pleased to attract partners who are leaders in the energy and finance sectors to construct a state-of-the-art electric generating facility that is designed to be among the cleanest electricity producers in New York, benefitting both the State’s energy portfolio and the people who rely on it.”

Robert E. De Meyere, Cricket Valley Energy Center Project Manager said:

“Cricket Valley Energy Center will revitalize a dormant industrial site, create jobs, and generate tax revenue for the Town of Dover in Dutchess County and the State. I am grateful to the Dover community for their continued support for this project. I look forward to bringing Cricket Valley Energy Center to the operational phase.”

JERA President Yuji Kakimi said:

“As the largest equity investor in the project, JERA’s mission is to make active contributions to ensure an internationally competitive supply of power and energy. We are pleased that this project will help provide New Yorkers with one of the most energy efficient, natural gas generating facilities in the United States.”

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