Apr 7 2016
Macquarie Infrastructure Partners III (MIP III), along with Siemens Financial Services (SFS), today announced that they have entered an agreement to construct Lordstown Energy Center (LEC), a 940 megawatt combined cycle gas turbine (CCGT) electric power generation facility. The LEC site is situated approximately 50 miles southeast of Cleveland, OH, in the village of Lordstown.
The developer of the project, Clean Energy Future, will retain an interest in the project. Siemens will act as the Engineering Procurement Construction (EPC) contractor and provide the gas turbines, a steam turbine, and generators. The facility will be a Siemens 2x1 combined cycle power plant, featuring Siemens H-class technology.
“Lordstown Energy Center is a very high quality energy infrastructure project with which we are proud to be associated,” said Chris Leslie, Chief Executive Officer of MIP III. “LEC is expected to utilize the latest in high efficiency gas turbine power generation technology – technology that is both cost effective and more environmentally friendly than the aging coal-fired capacity that it will replace.”
MIP III will provide 73% of the equity investment and Siemens Financial Services will provide the remaining 27%. A consortium of banks led by Industrial & Commercial Bank of China, Credit Agricole, Bank of America Merrill Lynch and Investec, will provide the $445 million term debt to fund the construction.
“As the technology partner for LEC, we are pleased to provide Lordstown Energy Center with a turnkey solution of world-class power equipment, including gas and steam turbines manufactured by Siemens workers at our U.S.-based energy hub in North Carolina. This equipment will be serviced with pride by Siemens for many years to come,” said John Gibson, Senior Vice President, Head of Sales North America at Siemens Power and Gas Division.
The turnkey solution for Lordstown will include two SGT6-8000H gas turbines, one SST-5000 steam turbine, two SGen-1200A generators as part of the gas turbine packages, one SGen-2000H generator as part of the steam turbine package, and a Siemens SPPA-T3000 integrated plant control system.
“We are very pleased to have such a distinguished and experienced team of international power industry leaders, as Macquarie and Siemens, taking over the leadership role within LEC. Their strong track records of success will be most beneficial in meeting the project’s goals,” said William Siderewicz, President, Clean Energy Future.
LEC is a “shovel ready” project, having received all required approvals and permits. Construction will begin immediately.
“Siemens is proud that we were able to support this project by leveraging our financial services capabilities alongside our power generation solutions,” said Kirk Edelman, CEO of Energy Finance, Siemens Financial Services. “Siemens funded the development loan as well as an equity investment in Lordstown, underscoring our commitment to the long-term success of this project.”
Power produced by LEC will be delivered into the PJM market, which serves more than 60 million customers. LEC will be capable of producing enough power to supply the equivalent of approximately 800,000 homes with clean, reliable power. The plant will replace a portion of the more than 18 gigawatts of coal-fired generating capacity in the region that has been retired since 2012.
Approximately 450 individuals will be employed in union positions during the nearly two-year long development and construction phase. Ongoing operations will be sustained by a permanent staff of 20. The facility is expected to commence commercial operations in the summer of 2018.
CEF-L is strategically located between the Utica and Marcellus shale gas basins ensuring a ready access to low cost gas.
Whitehall Capital Markets, LLC served as the Equity Placement Agent and Financial Advisor for the debt raise for Clean Energy Future - Lordstown. Barclays is MIRA’s financial advisor for this transaction. Chadbourne & Parke LLP represented Macquarie Infrastructure Partners III, L.P. on the acquisition of the Lordstown project and on the financing for the project.