Energy Capital Partners (“ECP”), a Summit-based private equity and infrastructure investment platform specializing in energy transition and power generation, has completed its acquisition of an 892-megawatt (MW) natural gas-fired cogeneration portfolio from Toronto-headquartered Fengate Asset Management (“Fengate”).
The portfolio comprises three industrial cogeneration facilities situated across Texas and Illinois. Underpinned by long-term contracts, the plants serve as primary suppliers of essential process steam and electricity to two major integrated petrochemical complexes in the U.S.
The acquisition places ECP’s newly acquired assets within two of the nation’s premier wholesale power markets: the Electric Reliability Council of Texas (ERCOT) and PJM Interconnection (PJM).
The transaction builds upon ECP’s extensive track record in power generation and cogeneration infrastructure. Over its history, ECP has owned and operated more than 83 gigawatts (GW) of power and renewable assets, including over 9 GW of cogeneration facilities through previous investments in Calpine, Atlantica, Heartland, and Triton.
ECP plans to leverage the portfolio to anchor a scaled industrial cogeneration platform, targeting further investments in high-efficiency, gas-fired generation assets through its latest flagship fund.
“As power demand continues to accelerate, we believe existing generation in premier markets will benefit,” Tyler Kopp, Partner at ECP said. “Tightening reserve margins and the need for new, gas-fired generation has strained supply chains and increased replacement costs, which ultimately increases power prices. Acquiring high-quality, efficient assets with a focus on reliability remains a key focus of ours and we look forward to working with all stakeholders to continue Fengate’s strong stewardship of the Portfolio.”
For Fengate, the divestment marks the successful culmination of a six-year ownership period alongside asset management partner Ironclad Energy. During its tenure, Fengate expanded and operationalized the portfolio to serve major industrial end-users across Midwest and Gulf Coast manufacturing corridors.
“This transaction reflects our strategy of identifying high-quality infrastructure opportunities where we can create value through active ownership and disciplined investment,” Greg Calhoun, Managing Director and Head of Energy Transition at Fengate said. “Over six years of ownership, we strategically built and scaled the portfolio, alongside our partners at Ironclad Energy, to strengthen a collection of critical energy infrastructure assets serving major industrial customers.”
Legal and financial advisors
- For Energy Capital Partners (ECP): Latham & Watkins LLP served as legal counsel.
- For Fengate Asset Management: CIBC Capital Markets served as financial advisor, while Davies Ward Phillips & Vineberg LLP served as legal counsel.
About the entities
- Energy Capital Partners (ECP): Founded in 2005 and headquartered in Summit, New Jersey, ECP is a leading private equity and infrastructure investor focused on energy transition, electricity generation, and sustainable power infrastructure. ECP has raised more than $41 billion in capital commitments since inception.
- Fengate Asset Management: A North American alternative investment manager managing over $9 billion in capital commitments across infrastructure, private equity, and real estate, with a portfolio of more than 55 infrastructure assets.
- Ironclad Energy: An independent asset management firm specializing in acquiring, operating, and improving middle-market industrial cogeneration, district energy, and utility power facilities.
