General Electric (NYSE:GE) said Dec. 8 that it, BNP Paribas, Citigroup and Mitsubishi UFJ Financial Group are co-leading project financing for construction and operation of the Caithness Moxie Freedom power plant in Luzerne County, Pa. – the first plant using GE’s high efficiency 7HA.02 gas turbines to be project financed.
Moxie Energy LLC and Caithness Energy LLC jointly developed the combined cycle facility. Global Infrastructure Partners, John Hancock and First Reserve are preferred equity investors. The 1,029-MW plant will be able to generate the equivalent power needed to supply approximately one million U.S. homes.
“Working with GE on both the technology and the financing helps us move forward with confidence in the construction and operation of the Caithness Moxie Freedom Project,” said Leslie J. Gelber, president of Caithness Energy. “GE’s large, high efficiency 7HA.02 technology allows the project to capitalize on the abundance of low-cost natural gas in Pennsylvania and supports the PJM region’s increased use of cleaner burning natural gas for power generation. We’re excited to get this new plant online and deliver the cleaner, cost-effective energy needed throughout the PJM region.”
GE Energy Financial Services and its co-leads arranged $592 million senior secured credit facilities to support the Caithness Moxie Freedom Project’s construction and operation, with eight other banks in the syndicate. With its utilization of the world’s largest, most efficient H-class technology for 60 hertz countries, the Caithness Moxie Freedom Project is projected to be one of the most efficient plants in the PJM Interconnection region.
“Being selected for the Caithness Moxie Freedom Project shows the power of the GE store,” said Joe Mastrangelo, president and CEO, gas power systems at GE Power. “The technology inside our gas turbines comes from across the GE portfolio, and we also have world-class steam tail capability with the addition of Alstom to our business.”
GE is providing the Caithness Moxie Freedom Project with an engineered equipment package (EEP) consisting of two 7HA.02 gas turbines, two steam turbines, the control system, associated equipment and a long-term services contract. The turbines will operate in single-shaft combined cycle configurations, providing the flexibility required to add highly efficient, reliable power to the grid as needed. If necessary, one unit can run while the other is offline. The plant is expected to begin commercial operation in 2018.
GE noted that its HA gas turbines are the world’s largest and most efficient at more than 61% combined cycle efficiency, and lead the industry in total life-cycle value. With the Caithness Moxie Freedom Project, 23 HA units have been ordered among the 78 HA units that have been technically selected by customers around the world.
PJM on Dec. 7 filed with the Federal Energy Regulatory Commission an executed interconnection service agreement with Moxie Freedom LLC and interconnecting transmission owner PPL Electric Utilities. The ISA facilitates the interconnection of the 1,050-MW Freedom Generation Plant to the PJM system at a site located in Luzerne County, Pennsylvania. The facility consists of two separate trains of single shaft combustion turbine and steam turbines with a common generator in a Combustion Turbine-Generator–Steam Turbine arrangement.
This project is under PJM queue positions #Z2-046 and #AA1-066. Under the ISA, on or before Dec. 31, 2018, Moxie Freedom must demonstrate commercial operation of all generating units.