BKV Corporation and Banpu Power have signed an agreement to purchase all of the equity interests in Temple Generation Intermediate Holdings II, which owns the Temple I natural gas power plant in Texas, for $430m.
Temple Generation owns the power plant through its subsidiary, Temple Generation I.
The power plant was built in 2014 and is equipped with combined cycle turbines and advanced emissions control technology.
It is claimed to be one of the cleanest natural gas-fuelled power plants in the country.
The plant generates enough energy to power 750,000 homes across the central Texas region.
In February, it was one of the few power plants to operate during Storm Uri, providing power to the Electric Reliability Council of Texas (ERCOT) grid during the peak of the storm.
Temple Generation I has operated the facility since it came online in 2014.
In 2018, the company successfully reorganised in partnership with financial institutions, including funds managed by affiliates of Fortress Investment Group, Kennedy Lewis Investment Management and Ares Management’s Infrastructure and Power strategy.
The deal is expected to close in the fourth quarter of this year subject to customary closing conditions.
BKV Corporation CEO Chris Kalnin said: “We’re excited about this acquisition and the strategic steps we are taking to position BKV as a leading integrated energy company with cleaner, greener energy.
“By extending our natural gas business into a power business, we are able to deliver to unprecedented grid reliability while also creating industry-leading ESG standards because we can directly certify our emissions footprint at each step in the value chain, from underground molecule to burner tip.”
BKV has natural gas operating assets in the north-east Marcellus Shale in Pennsylvania and North Texas’ Barnett Shale.
The company seeks to invest in upstream oil and gas opportunities in North America in order to create ‘long-term sustainable value’ in the energy industry.