Advanced Power closes $1.3bn funding for US power plant
August 27, 2018 – Advanced Power has closed a $1.3bn financing for the construction of South Field Energy, a 1,182MW combined-cycle natural gas electric generating facility, in Columbiana County, Ohio, US.
Advanced Power and an investor group comprising Kyushu Electric Power, NH-Amundi Asset Management and PIA Investment Management, RS Global Capital Investment (a joint venture between Development Bank of Japan and Showa Shell Sekiyu), Shikoku Electric Power and an affiliate of Bechtel Development own the facility.
Crédit Agricole Corporate and Investment Bank, CIT Group, GE Energy Financial Services, NH Investment & Securities and 10 other commercial banks will provide senior secured credit plus other credit facilities.
Advanced Power CEO Thomas Spang said: “Advanced Power is proud to have delivered the South Field Energy project. The community has supported South Field Energy from the beginning. The environmental, economic and regional tax-based benefits are clear and well understood.
“The community has worked closely with us and we are pleased to be able to deliver our second major project in Ohio and third major project in the United States.
“We and our partners, who are leaders in the energy and finance sectors, will construct a state-of-the-art low-carbon electric generating facility that will benefit both the State’s energy portfolio and the people who rely on it.”
Advanced Power will manage the facility, which will sell energy, capacity and ancillary services into the PJM market.
South Field Energy project manager Zachary Gordon said: “The South Field Energy project will create jobs and bring significant economic benefits to the Village of Wellsville, Columbiana County and the State.
“I am grateful to the Columbiana County community for its continued support in bringing this project to fruition.”
Bechtel will undertake the engineering, procurement and construction of the centre, which is slated for completion in the second quarter of 2021.
The project is expected to create 1,000 jobs during the peak of construction.
The facility will use two GE gas turbines, each with a heat recovery steam generator and steam turbine generator. It will produce enough electricity to power approximately one million homes. Advanced Power will be the construction and asset manager.