Return to search

BlackRock-backed gas plant hits $1.5bn financial close

The Cricket Valley Energy Centre is leveraged with about 44% equity from investors including TIAA and 55% debt from a group of global finance institutions.

A consortium of equity and debt providers have reached financial close on a $1.58 billion natural gas facility in Upstate New York.

Advanced Power AG, developer of the 1.1GW Cricket Valley Energy Centre, said construction costs for the combined-cycle generator have been met with 44 percent to 55 percent equity-to-debt split, with $709 million in equity commitments and $875 million from debt facilities.

JERA Co., a joint venture between Japanese energy companies Chubu Electric Power and TEPCO, led the equity commitments with an undisclosed amount, and private equity firm BlackRock took a 10 percent stake in Cricket Valley last August. Other investors include TIAA Investments, the Development Bank of Japan and NogHyup Financial Group.

Debt was provided by a consortium of global finance institutions including national and commercial banks.

The natural gas facility has the capacity to power nearly one million homes surrounding Dover, New York. It is expected to start operation in early 2020 and will draw gas from the adjacent Iroquois natural gas pipeline. It will sell its energy to the local utility New York Independent System Operator.

Cricket Valley Energy Centre is Advanced Power’s second major generation facility in the US. Its other project is a 700MW facility under construction in Ohio. The developer is a privately-owned company with over 7GW of projects in operation, under construction or in development in the US and Europe.