Bangkok-based Electricity Generating Public Company Limited (EGCO Group) has made its first investment in the US market, with the acquisition of a stake in New Jersey power plant Linden CoGen.
The 972MW natural gas-fired cogeneration facility is located in Linden, New Jersey, and is majority-owned by Linden Topco. The deal involves EGCO taking a 28% stake in Linden Topco.
The facility sells energy, capacity and ancillary services into the New York System Operator (NY-ISO Zone J) and the PJM PS North power market in New Jersey, which are two of the most capacity-constrained power markets in the United States. It also has long-term steam and electricity sales contracts with large industrial offtakers.
“This acquisition marks the first investment by EGCO in the US, a large market with over 1,100GW of installed capacity and vast opportunities in renewable and supporting gas-fired power facilities," says EGCO Group president Thepparat Theppitak. "The investment will allow EGCO to enter the US market, and position it for new investment opportunities in the US.”
In a notification to the Stock Exchange of Thailand, EGCO Group says EGCO Linden II, LLC, a wholly owned subsidiary of EGCO, entered into a purchase and sale agreement with AEIF Linden SPV, LLC and Highstar Capital GP IV on January 29. The transaction is expected to close in the second quarter of this year following successful completion of all closing conditions.
EGCO is a subsidiary of state-owned Electricity Generating Authority of Thailand (EGAT). It has an ambitious expansion programme both in Thailand and internationally, involving both fossil fuels and renewables.
EGCO holds a 25% stake in Yunlin Holding GmbH, which is developing the 640MW Yunlin offshore wind farm project in Taiwan, expected to come online towards the end of the year. It also has a stake in the 644MW Nam Theun 1 hydroelectric power plant currently being built in Laos.
Electricty Generating Authority of Thailand is the country's leading state-owned power utility, and falls under the Ministry of Energy. It is responsible for electric power generation and transmission for the whole country, as well as bulk electric energy sales.
It is the largest power producer in Thailand, owning and operating power plants of different types and sizes in 45 sites across the country.
EGCO Group is the first independent power producer in Thailand, established in 1992 by EGAT. Its incorporation marked the commencement of the Thai government’s privatization initiatives to allow private sector investment in the power industry. EGCO Group listed on the Stock Exchange of Thailand in 1995.
As a holding company, the group focuses on power business investment both in Thailand and overseas, as well as investment opportunities in other related power businesses. Its power plants use several fuel sources such as natural gas, coal, biomass, hydro, solar, wind, and geothermal.