Calpine to acquire Granite Ridge Energy Center in US for $500m

14 October 2015 (Last Updated October 14th, 2015 18:30)

American electricity producer Calpine has signed a deal to acquire Granite Ridge's 745MW, gas-fired power plant in New Hampshire, US for $500m.

American electricity producer Calpine has signed a deal to acquire Granite Ridge’s 745MW, gas-fired power plant in New Hampshire, US for $500m.

The facility, known as the Granite Ridge Energy Center, is a 12 year old combined-cycled plant located in Londonderry, New Hampshire, about 45 miles northwest of Boston.

The plant features two Siemens 501G combustion turbines, two heat recovery steam generators, and a steam turbine.

"Calpine has 83 power plants in operation or under construction, and generates around 27,000MW of electricity from natural gas and geothermal resources."

Calpine president and chief executive officer Thad Hill said: "This accretive transaction represents an attractive opportunity for Calpine to build upon our track record of value-enhancing portfolio management.

"With the addition of Granite Ridge, our footprint in New England will comprise approximately 2,000MW of reliable and environmentally responsible generation resources, making us a meaningful supplier in one of the nation’s leading wholesale power markets."

Calpine will fund the deal with a combination of debt financing, which it has already obtained, and cash.

The transaction is expected to close by 2016, after necessary terms and antitrust reviews by the Hart-Scott-Rodino Act and approvals from the Federal Energy Regulatory Commission, Federal Communications Commission, and New Hampshire Site Evaluation Committee.

Calpine has 83 power plants in operation or under construction, and generates around 27,000MW of electricity from natural gas and geothermal resources.

The company has wholesale power operations and retail business operations named Champion Energy, through which it serves customers in 19 US states, and Canada.

The Granite Ridge Energy Center is a primary asset of GRE, where the company claimed to implement the predictive maintenance and capital expenditure programme successfully.