J-POWER USA has acquired a 25 percent equity stake in the Tenaska Westmoreland Generating Station, a 925MW gas-fuelled power plant under construction outside Pittsburgh.
Financial terms of the deal were not disclosed.
The move is consistent with the strategy of J-POWER USA, a subsidiary of Japanese giant Electric Power Development. The Chicago-based firm has long shown interest in the US and already has 10 power plants in its portfolio.
“We’re looking at developing projects and acquiring projects in the North American marketplace,” Mark Condon, J-POWER USA’s president and chief executive, told Infrastructure Investor. “We’d like to grow further through acquisition and development, and we’re looking selectively at opportunities.”
Construction of the Westmoreland plant in Smithton, Pennsylvania began last August, with the start of commercial operations scheduled for 2018. Other investors in the plant include affiliates of Tenaska and the Diamond Generating Corporation, a division of Mitsubishi.
Tenaska and J-POWER USA also have joint investments in power plants in Shiro, Texas and Scottsville, Virginia.
“Our relationship with J-POWER USA began over 10 years ago, and we have since built a strong partnership,” said Dave Kirkwood, senior vice-president in Tenaska’s strategic development and acquisitions group.
The largest wholesale utility in Japan, Electric Power Development has $22.6 billion in assets under management. J-POWER USA was founded in 2005 and controls more than 3.5GW of power generation. Tenaska, headquartered in Omaha, Nebraska, manages nine power plants totalling about 7GW.