JERA to Acquire Natural Gas-fired Thermal Power Generation in the Northeastern United States2018/08/10
JERA Co., Inc. (“JERA”), through its wholly owned subsidiary JERA Americas Inc. (“JERA Americas”), has entered into an agreement with Starwood Energy Group to acquire a 50% equity interest in three natural gas-fired thermal power generation plants (the “Compass Portfolio”) in the northeastern United States.
The Compass Portfolio includes the Marcus Hook Energy Center, in suburban Philadelphia, and the Dighton and Milford Energy facilities in Massachusetts, with an aggregate power generation capacity of 1,123 MW. Power and capacity from the Marcus Hook Energy Center is sold mainly into the PJM Interconnection (PJM) wholesale electricity market, and power and capacity from the other facilities is sold into the ISO New England (ISO-NE). In addition, the Marcus Hook Energy Center has a contract for capacity with the Long Island Power Authority, a power distribution utility. After the acquisition of this interest, JERA Americas will participate in the operation of the Compass Portfolio .
In April of 2018, JERA closed on its 50% acquisition of Linden Cogeneration Facility, a 972 MW natural gas-fired thermal power cogeneration complex in northern New Jersey. After the Compass Portfolio transaction with Starwood Energy Group closes, JERA’s net ownership of electric generation in North America will total approximately 3,536 MW and will represent one of the largest ownership positions for a Japanese-affiliated company.
“JERA is committed to significantly expanding our long-term presence in North America by using a disciplined approach to build a portfolio of gas-fired and renewable generation facilities,” said Toshiro Kudama, CEO of JERA Americas and Senior Executive Vice President at JERA. “These plants are all in excellent locations close to customer demand and are strong additions to our growing portfolio.”
JERA, the parent company, will help drive the Compass Portfolio forward by transferring skilled personnel who will bring operational know-how accumulated through JERA’s extensive power generation business both overseas and in Japan. Going forward, JERA will continue to enhance its enterprise value by expanding its overseas power generation business, in the Americas and elsewhere, taking into account global market trends, profitability and associated risks, and applying the experience gained overseas to its domestic power generation business. JERA also intends to utilize expertise developed in the US merchant markets in Japan in anticipation of the forthcoming functional unbundling of Japanese power markets.
About JERA
JERA is an energy company with global reach that has industry leading expertise and scale in the entire fuel and power supply chain, from participation in LNG and other fuel resource projects and fuel procurement, through fuel transportation to power generation. Established in 2015, JERA is an equal joint venture of TEPCO Fuel & Power, Incorporated and Chubu Electric Power Company. JERA’s mission is to contribute to an internationally competitive supply of power and energy and to invigorate the standard of living, industry and economy around the world.
About JERA Americas (formerly JERA Power USA)
Headquartered in Houston, JERA Americas is JERA’s wholly-owned subsidiary in charge of growth in North America. JERA Americas is pursuing disciplined growth with a goal of becoming a leading owner of contracted and merchant gas-fired and renewable generating facilities in North America.
Appendix 1 Outline of the Compass Portfolio [PDF: 324KB]
Appendix 2 JERA's Power Generation Asset Position in North America (as of August 2018) [PDF: 100KB]