HOUSTON, Aug. 20 /PRNewswire/ -- In July 2008, an affiliated fund of
ArcLight Capital Partners, LLC ("ArcLight") completed an initial investment
in NuCoastal Power Holdings, LLC ("NuCoastal Power") located in Houston,
Texas. The new company will be re-named ReNu Power LLC.
Founded in 2005, NuCoastal Power is a power generation company whose
strategy has been to acquire and re-develop a portfolio of five "mothballed"
power plants in the capacity-constrained Texas ERCOT southern zone. Arclight's
capital commitment to NuCoastal Power is sufficient to fund the development of
the portfolio.
Permitting for all of the development plants has been completed, as well
as procurement of most of the major equipment needed to transform these
acquisitions into high-efficiency low-cost producers. Of the five power plant
sites, four of the plants are being repowered as gas-fired plants; the fifth
plant will be repowered as a solid-fuel (petroleum coke) plant. In total, the
portfolio represents 1,500 MW of capacity.
NuCoastal Power's first gas-fired repowering project in Victoria, Texas is
scheduled to be on-line in the fourth quarter of 2008 and will benefit from a
six-year tolling agreement. Construction is expected to begin on two other
gas-fired plants -- one located in Corpus Christi and one located in McAllen
-- by the end of 2008. The Corpus Christi plant is anticipated to be complete
in 2009 and the McAllen plant is expected to be complete in 2010. Development
on the fourth gas-fired plant will begin in 2009 with a 2011 expected
completion date. In August 2007, the Texas Committee on Environmental Quality
issued an air permit with respect to the solid-fuel plant at Point Comfort.
Fabrication on a new circulating fluidized bed combustion boiler and detailed
engineering work has commenced. The anticipated project completion date is
the end of 2012.
According to Roy Hart, Chief Executive Officer of NuCoastal Power, "We are
extremely bullish on the market dynamics of the southern zone ERCOT market.
Given the attractive heat rates of our gas-fired plants and the low cost fuel
supply for our solid-fired plant, we believe that the addition of the
resources brought by ArcLight completes the picture. Their extensive
financial, project development and execution experience fits well with the
innovative approach brought by NuCoastal Power to this market opportunity."
Dan Revers, the managing partner of ArcLight added, "ArcLight is excited
about the opportunity to develop and construct a sizeable portfolio in the
ERCOT market with the capable and experienced development team at NuCoastal.
NuCoastal's repowering strategy represents a value-added approach to
ArcLight's existing development strategy".
About Us
NuCoastal Power is a power generation company formed to acquire and
re-develop a portfolio of five "mothballed" power plants in the Texas ERCOT
southern zone. NuCoastal Power is based in Houston, Texas.
ArcLight Capital is one of the world's leading energy investment firms
with more than $6.8 billion under management. ArcLight's investment team has
extensive energy investing experience, industry relationships, and asset level
knowledge. ArcLight is headquartered in Boston, Massachusetts with offices in
New York City, London and Luxembourg. More information about ArcLight can be
found at http://www.arclightcapital.com.
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