Investment venture buys Dover natural gas plant

By District Energy posted 11 days ago

  

Delaware Business Times

Summary

A partnership of an out-of-state equity investor and energy operator has acquired the natural gas-fired power plant that also powers Kraft Heinz’s food products plant and Proctor & Gamble’s wipes manufacturing facility.

The partners, New Jersey-based operator DCO Energy and New York-based investor Basalt Infrastructure Partners, bought the plant located at 1280 W. North St. from Clearway Energy Group, which was born out of the $1.3 billion 2018 sale of former NRG Energy assets.

Terms of the deal, which was signed in September, approved by federal energy regulators Feb. 28 and closed March 3, were not disclosed. According to Kent County property records, the property continues to be owned by First State Power Management Inc., which purchased the land for the plant from Kraft Foods for an estimated $6.7 million in 1995.

With no change in the ownership of the property, it appears that Clearway sold the limited liability company that holds the land to DB Energy Assets, the investors’ joint venture. A March 31 filing with the U.S. Securities and Exchange Commission said that Clearway sold “100% of its interests in Energy Center Dover LLC and Energy Center Smyrna LLC.” A Clearway spokesperson declined to elaborate on the details of the sale and DCO Energy officials, who announced the acquisition May 29, have not returned several calls for comment.

The plant, known as Energy Center Dover, is a cogeneration plant, which consist of a gas turbine generator exhausting into a heat recovery steam generator. The technology is more environmentally friendly by reusing the hot exhaust that older plants would have been emitted into the air to boil water and power a second steam generator. Raw heat, or thermal energy, is also captured and used by the neighboring manufacturing plants.

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