EGCO makes first move into US power market
Electricity Generating Plc (EGCO Group) today announced its investment in a 972-megawatt natural gas-fired cogeneration plant located at Linden in the US state of New Jersey, and owned by Linden Topco LLC (Linden Topco).
EGCO has agreed to purchase a 28 per cent stake in the Linden Topco plant, according to EGCO Group’s president, Thepparat Theppitak. EGCO expects the deal to be finalised in the second quarter of this year.
The Linden cogeneration plant sells energy, capacity and ancillary services to the operators of the New York and New Jersey electricity grids, two of the most congested and capacity-constrained power markets in the United States. The plant also enjoys long-term contracts for the sale of process steam and electricity to large investment-grade industrial off-takers, said EGCO.
“This acquisition marks the first investment by EGCO in the US, a large market with over 1,100GW of installed capacity and vast opportunities in renewable and supporting gas-fired power facilities,” said Theppitak. “The investment will allow EGCO to enter the US market, and position it for new investment opportunities in the US.”