NJ power project reaches financial close

Competitive Power Ventures, GE Energy Financial Services, and ArcLight Capital have closed financing for the $842m CPV Woodbridge Energy Centre in New Jersey.

Competitive Power Ventures, GE Energy Financial Services and ArcLight Capital Partners have achieved financial close for the 700-megawatt (MW), natural gas-powered project under construction in Woodbridge, New Jersey, the three companies announced in a joint statement.

“The CPV Woodbridge project will help turn the site of a former chemical plant into a productive cleaner power generation facility,” the companies said in their joint statement.

Construction is due to begin this quarter and the centre is expected to begin operations in the first quarter of 2016, supplying electricity to 700,000 homes.

The CPV Woodbridge Energy Centre is owned by renewable energy developer Competitive Power Ventures, private equity firm ArcLight, and trading company Toyota Tsusho.

GE, through its various businesses is providing both financing and technology to the project. GE Energy Financial Services served as the administrative agent and, through GE Capital Markets, as the Energy Centre’s lead arranger and bookrunner to anchor $561 million in senior secured credit facilities, according to the statement.

“The project debt that GE Capital Markets, Inc., arranged is the first sizeable project financing of a greenfield, partial-merchant power project to be broadly syndicated in the traditional project finance bank market in many years,” according to the statement, which also noted that the debt syndication was oversubscribed.

Through its Power & Water business, GE is also providing equipment and engineering services to the project.

The facility is expected to sell its capacity through 15-year Standard Offer Capacity Agreements (SOCA) with New Jersey utilities, and energy through a hedge.

It will be operated by an affiliate of ArcLight.

(Photo courtesy of PRNewsFoto/Competitive Power Ventures).