Energy Investors Funds buys Texas cogen from two parties

Energy Investors Funds (EIF) said Jan. 10 that it has acquired the Channelview cogeneration facility, an 865-MW gas-fired plant located near Houston, Texas, from Global Infrastructure Partners (GIP) and Fortistar.

Terms of the deal were not disclosed. EIF United States Power Fund IV LP, which is managed by EIF, was responsible for the deal.

Channelview, which began operations in 2002, is located near the Houston Ship Channel. It sells steam and electricity under long-term contract with a large industrial customer. The facility also sells power under a series of off-take agreements to the Electric Reliability Council of Texas (ERCOT) market. The facility is one of the cleanest and most efficient gas-fired generation facilities in Texas, and is located in the Houston Zone, the most constrained area in ERCOT, EIF noted.

“We’re very excited about this deal and project,” said Mark Voccola, Partner with EIF. “Channelview has a solid operating history and long-term contracts with a very stable industrial partner, which we believe creates an exciting value proposition going forward.”

Jonathan Bram, the GIP Partner leading the Channelview transaction, said: “We congratulate EIF on its purchase of Channelview, a state-of-the-art asset with market-leading efficiency that makes it both productive and environmentally friendly.”

EIF was founded in 1987 as one of the first private equity fund managers focused on the independent power and electric utility industry. EIF-managed funds own approximately 4,000 MW of capacity in facilities that are currently operating or under construction and an additional 6,000 MW in facilities that are in various stages of development.

Global Infrastructure Partners is an independent infrastructure fund with over $16.5bn under management that invests worldwide in infrastructure assets and business in both OECD and select emerging market countries.

Fortistar, headquartered in New York, has over a 25-year track record in investing in the power sector with particular expertise in operating and optimizing cogeneration assets. The company has interests in over 60 projects located in the United States and Canada, including a growing renewable energy portfolio.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.