State of the Art, 620 MW Power Infrastructure Asset in New England;
Well Positioned to Help Meet Growing AI & Power Demand
ArcLight Capital Partners, LLC (together with its affiliates “ArcLight”) announced its managed fund has entered into definitive purchase agreements with Osaka Gas USA Corporation (“Osaka Gas”) and Kyuden International Americas Inc. (“Kyuden”) to acquire their indirect common equity ownership interests in Kleen Energy Systems, LLC (“Kleen Power”).
Kleen Power is a top decile, 620 MW natural gas fired power generation asset in the New England market which is well positioned to benefit from AI and electrification-related power demand and provide reliable power and related services to the grid.
The converging investment mega trends of AI-driven data center development and electrification, largely through the acceleration of EV adoption and heating electrification, are creating unprecedented power demand growth and infrastructure needs, increasing the importance of being able to provide large scale, customized, sustainable, and affordable power infrastructure solutions.
Since 2001, ArcLight has owned, controlled, or operated over ~65 GW of assets and 47,000 miles of electric and gas transmission infrastructure with $80bn of enterprise value. With its deep industry experience and suite of internal operational and technical resources, ArcLight believes it is well positioned to deliver the electric infrastructure solutions required by AI and data center power demand. Today, ArcLight manages one of the largest private power infrastructure portfolios in North America.
“ArcLight’s acquisition of Kleen Power leverages its deep investment expertise across over 50 power investments since 2001, along with its ability to acquire strategic power infrastructure assets and utilize ArcLight’s value added investment playbook and resources to enhance value and the ability to provide critical and reliable power,” said Angelo Acconcia, Partner at ArcLight.
“Kleen is a high-quality combined cycle providing critical infrastructure and reliable energy supply as one of the most efficient natural gas-fired assets in the New England market, serving a real and growing market need,” said Andrew Brannan, Managing Director at ArcLight.
Following closing, ArcLight’s power management team Alpha Generation Services, LLC (“AlphaGen”), led by Curt Morgan, will take over the management of Kleen Power.
Terms of the transaction were not disclosed. The transaction is expected to close in 2025, subject to regulatory approvals. Latham & Watkins LLP is serving as legal counsel to ArcLight and MUFG as financial advisor.
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