Return to search

Axium buys stakes in two US natural gas facilities

Capital Dynamics is the lead investor on the two projects under development in North Carolina and Ohio.

Axium Infrastructure has invested in two natural gas facilities under construction in the US that together cost over $1 billion.

The Montreal-based investor acquired a 25 percent equity interest in the 475MW Kings Mountain Energy Center project in North Carolina and a 19.6 percent Middletown Energy Center in Ohio. NTE Energy is developing both natural gas facilities, and Swiss-based Capital Dynamics is the lead investor.

The Kings Mountain facility costs $605 million, with $387 million of debt provided by nine financial institutions including ING Capital and MUFG Union Bank. Capital Dynamics and Wattage Finance provided $218 million in equity.

According to Capital Dynamics, electricity produced at Kings Mountain Energy Center will be sold to nine municipal and state-owned utilities in North Carolina and South Carolina.

Financing for the $645 million Middletown Energy Center included $402 million in debt from a consortium of banks including BNP Paribas, Credit Agricole Corporate and other investment banks. Capital Dynamics and Wattage Finance provided $243 million in equity.

The Middletown facility is contracted to sell electricity to regional transmission company PJM Interconnection.

“These high-quality assets will benefit from solid revenue profiles derived from long-term offtake as well as capacity and energy payments,” Axium's US president Thierry Vandal said in a statement.

Axium had around C$2 billion ($1.5 billion; €1.39 billion) in assets under management at the end of last year, the firm said in a statement. It's most recent US investment was in renewable energy assets, acquiring an 84MW solar portfolio in California and Georgia last November.