Macquarie Infrastructure (MIC) has signed an agreement with an affiliate of ArcLight Capital Partners for the $720m acquisition of the 512MW Bayonne Energy Center (BEC) in New Jersey, US.
Situated alongside MIC’s International-Matex Tank Terminals (IMTT) operations in Bayonne, New Jersey, the energy centre houses a 512MW gas-fired power generation facility.
A seven-mile long transmission cable joins the power plant to the Consolidated Edison Gowanus substation.
Electricity generated at the facility is supplied to New York City to meet its power requirements.
The agreement is expected to be closed by the first half of 2015, but still awaits customary regulatory approvals.
The 512MW facility is equipped with eight Rolls-Royce natural gas fuelled turbines, which each have a capacity of 64MW.
MIC chief executive officer James Hooke said: "BEC is a platform for the future deployment of capital for MIC, and we believe will have operating synergies with IMTT and our other CP&E businesses.
"The BEC acquisition, combined with our December acquisition of an additional stake in IWP, makes our CP&E segment a more substantial fourth vertical.
"The majority of the generating capacity is subject to offtake agreements with investment-grade counterparties for an average of more than 15 years.
"Including the additional development at BEC, we have a pipeline of opportunities that could see us own more than 1GW of generating capacity in the medium term."
Image: Cable route for Bayonne Energy Center connecting the substation in Brooklyn. Photo: courtesy of ABB.