Advanced Power announced April 7 that it has successfully closed a $899 million project financing – with its partners TIAA-CREF, Chubu Electric Power Co., Ullico and Prudential Capital Group providing $411 million in equity commitments, and BNP Paribas, Credit Agricole and eight other commercial banks providing $488 million in senior secured credit facilities – for the Carroll County Energy project.
Located in northeastern Ohio, Carroll County Energy will be a 700-MW combined-cycle natural gas facility that will sell energy, capacity and ancillary services into the PJM Interconnection market. The project is near the Utica and Marcellus natural gas production areas, as well as American Electric Power‘s (AEP) 345-kV transmission lines and Kinder Morgan‘s Tennessee Gas Pipeline system. This strategic location is an important competitive advantage of Carroll County Energy.
The facility will feature two General Electric 7F.05 gas turbines and a D602 steam turbine. Bechtel is building the project under a turnkey construction contract. EthosEnergy will operate the facility and Advanced Power will remain as the construction and asset manager.
“The project has received strong support from Carroll County and other key stakeholders in Ohio,” said Advanced Power CEO Thomas Spang. “From the beginning it was the project’s goal to work closely with the community and to bring in the strongest partners in the industry – this milestone demonstrates the success of that strategy.”
Carroll County Energy is one of a number of projects Advanced Power is developing in the U.S. and Europe.
“We are pleased to take part in another significant energy project as part of our growing relationship with Advanced Power,” said Marietta Moshiashvili, Managing Director and Head of Natural Resources and Infrastructure Originations at TIAA-CREF.
Approximately 700 construction jobs will be created during peak construction as well as 20 to 30 permanent jobs during operation. In addition to economic, socioeconomic and environmental benefits, the project will provide critical electric generation capacity in a region that has experienced significant facility retirements, mostly of coal-fired power plants.
BNP Paribas (Left Lead, Administrative Agent) and Credit Agricole Corporate and Investment Bank (Right Lead, Syndication Agent, Hedge Coordinator) served as Coordinating Lead Arrangers and Joint Bookrunners in forming a syndicate of 10 financial institutions to finance the project. Whitehall Capital served as the sponsor’s financial advisor. Morgan Lewis & Bockius served as project counsel.
Advanced Power is a privately-owned company established in 2000 to develop independent power projects in North America and Europe. Its experienced management team has led more than 9,400 MW of generating project development. Majority-owned by senior management, Advanced Power has offices in Boston and London and is headquartered in Zug, Switzerland.