US-based energy cooperative Dairyland Power Cooperative has agreed to acquire a 503MW natural gas power plant in Cambridge, Wisconsin.
The company will acquire the RockGen Energy Centre from an affiliate of Starwood Energy Group Global.
The RockGen Energy Centre is equipped with three 168MW low-NOx combustion turbines, which can scale production quickly to support intermittent renewable energy resources.
Dairyland Power Cooperative president and CEO Brent Ridge said: “RockGen will help meet our members’ power supply needs as we transition to more renewable resources.
“Safely delivering reliable and sustainable electricity to our members is critical as we continue to diversify Dairyland’s energy portfolio and lower carbon intensity.
“With the closing of our coal-fired Genoa Station III this year, the availability of this existing, low-cost and reliable facility in Wisconsin is both timely and a good strategic fit for our power supply portfolio.”
The dual-fuel power generating facility has been in operation since 2001 and runs primarily on natural gas.
Last year, the power plant was re-commissioned to allow it to operate on fuel oil as a backup fuel source.
The plant’s dual-fuel flexibility is intended to make power more reliable in the region if the supply of natural gas is limited.
The deal is expected to close by the end of this year subject to customary conditions, including regulatory approvals.
Starwood Energy CEO Himanshu Saxena said: “RockGen is a world-class facility and under our ownership, we have been able to add tremendous commercial and operational value to this asset.
“We are confident that this asset will serve Dairyland and its members for many years to come.”
In March 2019, Dairyland Power Cooperative closed a power purchase agreement with solar energy company Ranger Power for the 149MW Badger State Solar Project.
Located in Jefferson County, Wisconsin, the project is being by Ranger Power and will have the capacity to power more than 20,000 homes in the region.