Global energy transition investment firm Denham Capital has formed a partnership with Babcock & Wilcox to pursue opportunities to generate sustainable power to support increased energy demand for data centres in the US and Europe.
This will include technologies for coal power generation or natural gas conversion projects as well as back-end environmental technology, the firms said.
Through the partnership, Denham Capital’s sustainable infrastructure division will convert coal-fired power plants to cleaner natural gas solutions, which the firm believes “represent a crucial bridge for the clean energy transition”.
The partnership combines Denham’s expertise in developing, building and operating large-scale power plants and B&W’s experience in coal power generation and the conversion of coal-fired power plants to natural gas.
Justin DeAngelis, global head of sustainable infrastructure at Denham Capital, said: “Data centres have created an unprecedented and immediate demand for power generation, the likes of which we have not seen in nearly two decades.
“Time-to-power is a key focal point for data centre developers and hyperscalers, and this partnership is one differentiated tool we are looking to utilise to meet market needs.”
Denham expects to announce a dedicated portfolio company focused on delivering these solutions.
Kenneth Young, B&W chairman and CEO, said: “This partnership brings two well-established, experienced teams together to quickly and effectively identify opportunities to leverage underutilised coal-fired power plants to provide affordable, reliable power for large-scale data centres.
“The rapid growth of AI and data centres is driving demand for new, dedicated electrical generation capacity for these facilities, and we see a tremendous opportunity to help customers meet their energy needs affordably and efficiently.
“With our vast experience and our broad suite of both traditional and new technologies, we are well-positioned to support the power demand from data centres and global AI growth now and in the future.”
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