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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