Sojitz Corporation has announced it has closed the acquisition of a 33.33% stake in Birdsboro natural gas-fired power plant facility in Pennsylvania (US).
Sojitz acquired the project from a fund managed by Ares EIF Management, LLC, which owns the remaining 66.67% stake. Ares EIF is a value-add infrastructure investor with extensive experience in the development and management of power plants within the U.S.
The Birdsboro Power Plant, currently under construction, will be a combined-cycle generating facility with total output of 488 MW. The project company will purchase state-of-the-art gas and steam turbines manufactured by General Electric International, Inc. (GE).
The plant is expected to begin commercial operations in spring 2019, at which point it will supply energy to the northeastern United States within the PJM region (originally Pennsylvania-New Jersey-Maryland, now all or parts of 13 states plus the District of Columbia), North America’s largest wholesale electricity market. T
he Birdsboro Power Plant will contribute to filling the void left by a wave of retiring coal and nuclear power generators in the region, and will benefit from low-cost fuel from the Utica and Marcellus shales, the world’s most prolific natural gas play.
While Sojitz’s power portfolio includes a variety of investments in natural gas-fired power plants in the Middle East, Asia, and South America, this project represents Sojitz’s first large-scale power plant investment in the North American market. As demand for large-scale power projects and other infrastructure-related investments in the U.S. rises, Sojitz will make use of its power and energy experience to proactively pursue initiatives in this sector.