London-based Basalt Infrastructure Partners has taken joint-ownership of a portfolio of district energy systems and cogeneration assets, known as DB Energy Assets, with New Jersey-based DCO Energy.
Basalt acquired its share of DB Energy Assets using capital from its second infrastructure fund, which, according to regulatory documents filed in December, has raised $1.2 billion of its $1.35 billion target. The deal represents Basalt’s fourth investment.
The value of the transaction was not disclosed. Basalt and DCO’s deal gives their investors a network of small-scale distributed energy systems in Connecticut, Delaware and New Jersey. “DB Energy Assets will provide a strong platform for growth and a fresh source of capital to take advantage of increasing demand for cogeneration and district energy services in North America,” said Rob Gregor, Basalt managing partner.
Basalt and DCO Energy previously partnered last July to acquire Detroit Renewable Energy, a group of companies providing renewable energy generation and distribution in Michigan’s largest city.
The firm also holds the Upper Peninsula Power Company in the state’s northern peninsula. Basalt’s other assets include the Texas Microgrid back-up generator, a 57MW solar portfolio in North Carolina, the McEwan portfolio of 10 UK solar plants and the Madrid Metro light rail PPP.
Basalt’s second infrastructure fund, launched in October 2016, is focused on mid-market energy, transport and utility assets in Europe and North America.