EGCO Group completes acquisition of 49% interest in US 609 MW natural gas power Facility
Electricity Generating Public Company Limited or EGCO Group confirmed the completion of its acquisition of a 49% interest in Rhode Island State Energy Center, LP ("RISEC"), a 609MW natural gas-fired combined-cycle power plant in Johnston, Rhode Island in the United States.
The transaction resulted in an increase to EGCO Group's MWe capacity of 298MWe.
Thepparat Theppitak, EGCO Group's President, said, "EGCO RISEC II, LLC, a wholly owned subsidiary of EGCO, successfully completed the investment in RISEC on 24 March 2023. The investment will boost EGCO Group's power-generating capacity by an additional 298MWe on an equity-owned basis. In the meantime, the company will recognise immediate earnings in the proportion of its shares commencing from the closing date."
RISEC generates electricity in the New England power market ("ISO-NE") and is one of the most efficient power facilities in the ISO-NE system.
100% of RISEC's capacity and black start ancillary services are under contract with the ISO-NE.
100% of the facility's energy output and other ancillary services are also fully contracted to Shell Energy North America, an A/A2-rated investment grade off-taker, through an Energy Tolling Agreement.
Located adjacent to the load centres of Boston and Providence, RISEC is a key facility for providing grid stabilizing and energy services.
It also serves as a potential base for future energy transition initiatives, including the preparation of co-located battery energy storage systems and co-firing of hydrogen as fuel in its combustion turbine units in the future.
Thepparat added, "This transaction further builds upon EGCO Group's presence in the global power market. EGCO Group expects a number of business synergies to come from the investment which we expect will lead to additional investment opportunities in other high-quality gas and renewable projects in the US market in the coming years."