Funds managed by Strategic Value Partners (SVP) are acquiring an 831MW natural gas-fired combined-cycle generation facility in the US from Morgan Stanley Investment Management’s (MSIM) private infrastructure investment platform.
The SVP funds, as part of a 2024 partnership with EverGen Power focused on North American power generation investments, have agreed to acquire the Red Oak Power facility in Sayreville, New Jersey, from funds managed by Morgan Stanley Infrastructure Partners (MSIP).
Financial details not disclosed.
Red Oak, which began commercial operations in 2002, is a provider of low-cost power to customers in New Jersey and the broader PJM Interconnection region.
MSIP acquired the combined cycle power plant in 2017 and has managed the facility through its power asset management platform TigerGenCo, which also manages MSIP’s investment in Bayonne Energy Center.
Markus Hottenrott, CIO for Morgan Stanley Infrastructure Partners, said: “Red Oak demonstrates MSIP’s ability to create long-term value by bringing operational, commercial and financial expertise to our portfolio.
“Red Oak is a critical resource to the Northeast region and its role has become increasingly vital as the US power market grapples with load growth and challenges adding new supply.”
Ari Barz, co-CEO of EverGen, said: ”Red Oak is a critical asset, located in a high-power demand area that we expect to continue to see accelerated growth from AI-driven data centre development and the broader electrification of the economy. Its proven and efficient technology makes it well-positioned to continue to provide low-cost, reliable power to the Northeast.”
Dave Freysinger, co-CEO of EverGen, said: ”We are excited to partner with SVP on this investment as we expand our presence in PJM. We look forward to the continued optimisation of the operational and commercial performance of this important facility.”
David Geenberg, head of North American corporate investments at SVP, said: ”With the benefit of EverGen’s and SVP’s industry expertise, we were able to move quickly and provide deal certainty on an expedited timeline.
“We have worked closely with the members of the EverGen leadership team for many years, including in the underwriting, restructuring and operation of GenOn, a 12GW merchant fleet, in 2018, and the sourcing and acquisition of a managing stake in Birdsboro Power, another merchant CCGT [combined cycle gas turbine] in PJM, earlier this year.”
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