Energy Capital Partners in deal for gas turbine

Energy Capital Partners has bought AES Red Oak, an 830MW gas turbine. The energy infrastructure fund manager purchased the company from AES Corporation.

Energy Capital Partners (ECP) has made a deal to acquire an 830-megawatt combined cycle gas turbine in New Jersey. The private equity firm, a specialist in energy infrastructure, has bought AES Red Oak from AES Corporation, according to a statement from AES, an Arlington, Virginia electrical power company.

AES in its just released 2011 financial report said its sale of Red Oak to ECP, coupled with a separate deal that led to the purchase of its AES Ironwood gas fired power plant by PPL Generation, netted the company a total of $230 million. AES did not detail the individual price of each specific company. A spokesman did not return a voicemail message seeking comment.

AES, a Fortune 200 company traded on the New York Stock Exchange, said the selling of Red Oak came as part of a larger design to narrow its geographic focus. Paul Parshley, managing director for investor relations at ECP in Short Hills, New Jersey could not be reached for comment. The reason ECP purchased Red Oak could not be determined.

In electric power generation, a combined cycle is the use of one or more turbine from a single heat source, with the goal of converting the exhaust of one engine into energy for another. Red Oak was launched in 1998.

ECP in late 2011 began fundraising on a $500 million mezzanine vehicle named the Energy Capital Partners Mezzanine Opportunities Fund. ECP engaged The Park Hill Group, the third-party capital raising arm of private equity firm The Blackstone Group, for assistance.

Former Goldman Sachs executive Douglas Kimmelman established ECP in 2005. With $7 billion in total capital, ECP is also an investor in power generation, renewable energy, electronic transmission and gas storage.

In 2010, a slow year of fundraising for private equity, ECP raised $4.34 billion for its Energy Capital Partners II fund.