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.