Macquarie Infrastructure Partners III (MIP III), an unlisted infrastructure fund managed by Macquarie Asset Management, has announced an agreement for the sale of Lordstown Energy Center (“Lordstown” or “the Company”), a 940-megawatt Combined Cycle Gas Turbine (CCGT) power plant located in Ohio, to an affiliate of Arclight Capital Partners, LLC.
MIP III acquired its interest in Lordstown in April 2016, prior to the commencement of plant construction. MIP III, together with other shareholders, provided significant expertise and resources to Lordstown during the construction phase, culminating in the completion of construction and the successful commencement of operations in October 2018.
Since becoming operational, Lordstown has been one of the most efficient CCGT power plants operating in the U.S, supplying energy and capacity to the Pennsylvania-New Jersey-Maryland (PJM) market. Lordstown has also optimized its operations and revenue profile in recent years, achieving top quartile availability and reducing earnings volatility through the successful implementation of power and gas hedges. MIP III has also worked closely with Lordstown’s management team to ensure that Lordstown has been operated in accordance with best-in-class Workplace, Health and Safety (WHS) practices.
“We are very proud to have supported the successful construction of the Lordstown plant and then partnered with the management team to ensure the safe delivery of reliable energy to Ohio and the broader PJM market over the last five and a half years” said Karl Kuchel, CEO of Macquarie Infrastructure Partners.
Kirkland & Ellis LLP is serving as legal counsel and Solomon Partners is serving as financial advisor to Macquarie Infrastructure Partners III.
