US-based natural gas company BKV Corporation and Thai energy holding company Banpu Power have acquired the Temple I natural gas power plant in Temple, Texas, for a $430m consideration.
In August, BKV and Banpu Power signed an agreement to acquire an entire equity interest in the plant’s owner, Temple Generation Intermediate Holdings II.
Temple Generation owns the natural gas-fuelled power plant through its Temple Generation I subsidiary.
Built in 2014, the Temple I power plant features combined cycle turbines and has the capacity to power 750,000 homes across central Texas.
The plant is spread over a 250-acre land area and features emission-control technologies.
It is claimed to be one of the cleanest natural gas-based power plants in the US.
BKV CEO Chris Kalnin said: “We are extremely passionate about innovating the energy industry for the production and delivery of low-impact, sustainable energy.
“This acquisition provides an entry into the power business, delivering exceptional grid reliability and leading environmental, social and governance (ESG) standards with the ability to directly certify our emissions footprint at each step in the value chain.
“This is an important milestone for us as we move toward creating a different kind of energy company—one that is taking actionable steps now to change the future.”
During the Texas power crisis in February, Temple I was one of the few plants that operated and provided power to the Electric Reliability Council of Texas (ERCOT) grid.
Baker Botts served as legal adviser to BKV for the deal, while Guggenheim Securities acted as another adviser.
Based in Denver, Colorado, BKV is the largest natural gas producer in the Bend Arch–Fort Worth Basin Province’s Barnett Shale oil field.
The company employs more than 200 people in total across the US.