NTE Energy lines up financing for 475-MW Middletown project in Ohio

NTE Energy on Oct. 2 announced that its affiliate NTE Ohio LLC has successfully closed $645 million in project financing for construction and operation of its 475-MW Middletown Energy Center.

Financing includes NTE’s partners, Capital Dynamics and Wattage Finance-OH LLC, providing $243 million in equity commitments and a group of seven financial institutions, led by BNP Paribas and Credit Agricole Corporate and Investment Banks, providing $402 million in various senior secured credit facilities.

The Middletown Energy Center, located in Butler County, Ohio, will be a state-of-the-art 475-MW natural gas-fired facility that will sell capacity into the PJM Interconnection wholesale electricity market. The facility will be one of the most efficient and clean sources of capacity and energy in PJM, employing Mitsubishi’s GAC turbine technology in a combined-cycle configuration, the company noted.

Gemma Power Systems LLC will build the facility under an Engineering, Procurement and Construction Services contract and NTE Energy Services Co. LLC will be the construction and asset manager. Once operational, the Middletown Energy Center will supply the power needs of approximately 400,000 homes, with commercial operation expected to begin in 2018.

“NTE is excited to work with this prominent group of lenders and industry leaders on the Middletown Energy Center,” said Seth Shortlidge, CEO of NTE Energy. “The project’s successful financing exemplifies the accomplishments of our team and partners, and is an important milestone in our mission to bring reliable, efficient, and clean power to the United States.”

“Capital Dynamics is excited to be working with our partners, NTE, Guggenheim and this world class bank consortium on the financing and construction of the Middletown Energy Center,” said John Breckenridge, Managing Director at Capital Dynamics.

NTE Energy, through its affiliates, develops and acquires strategically located electric generation and transmission facilities within North America. The team executes all aspects of project development, from initial market and site evaluations and permitting to financing, construction and operation. NTE Energy is actively developing three projects located in West Texas, Southwest Ohio, and North Carolina as well as pursuing early-stage opportunities in several other locations.

Wattage Finance-OH LLC is owned by a group of private investors and advised by Guggenheim Partners Investment Management LLC.

Capital Dynamics is an independent, global asset manager, investing in private equity and clean energy infrastructure. Capital Dynamics’ Clean Energy and Infrastructure team holds extensive expertise in investing, financing, owning and operating conventional and clean energy businesses globally. Established to capture attractive investment opportunities in this class of real assets, Capital Dynamics’ CEI mandate is to invest directly in proven clean energy technologies – such as solar, wind, biomass, conventional gas generation and waste gas fueled power generation – across the globe. Since the establishment of Capital Dynamics’ CEI business, the CEI team has acquired, built and now manages more than 2,000 MW of clean energy capacity in North America, Europe and Australia.

In other recent news for this project: 

  • NTE Ohio on Sept. 29 filed with the Ohio Power Siting Board a copy of its newly-minted Interconnection Service Agreement with PJM. The ISA culminates a lengthy PJM process of reviewing the application for interconnection within its transmission queue system. The Ohio board in November 2014 approved the Middletown project and in that approval required that NTE could not commence construction of the facility until it submitted a copy of this final interconnection agreement with PJM. Under the ISA, on or before June 1, 2018, NTE Ohio must demonstrate commercial operation.
  • Mitsubishi Hitachi Power Systems Americas said Sept. 8 that it has been selected by NTE Energy to supply one of its M501GAC gas turbines for the Middletown Energy Center.
  • Gemma Power Systems said Aug. 20 that it has received an Interim Notice to Proceed under an Engineering, Procurement and Construction Services contract with NTE Ohio.
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.