Latest news with #ArcLightCapitalPartners
Yahoo
25-07-2025
- Business
- Yahoo
ArcLight plans $5bn investment in North American power infrastructure
ArcLight Capital Partners has acquired Advanced Power and announced an initial $1bn equity commitment aimed at expanding North American power infrastructure. The move is set to catalyse more than 20GW of new energy projects, bolstering AI and data centre capabilities across the continent. ArcLight has also committed to invest more than $5bn up to 2030 to accelerate North America's AI and data centre growth via modern, sustainable power infrastructure. The ambitious initiative will enhance low-carbon power infrastructure and drive economic growth by creating up to 80,000 jobs, including 10,000 permanent roles. The focus on modernising energy systems comes at a critical time when utilities and tech industries are seeking reliable sources amidst growing demand. Advanced Power brings substantial assets to the partnership with its existing late-stage projects throughout the US. These include more than 12GW of conventional and renewable energy ventures and more than 10GWh of energy storage undertakings — all essential for powering numerous large-scale data centres. By combining Advanced Power's development prowess with ArcLight's operating portfolio, which includes 26GW across various electric infrastructures, the partnership stands out as one with significant influence in meeting domestic electricity demands, equivalent to those of more than 11 million homes. Advanced Power CEO Tom Spang stated: "Advanced Power has a long development history and is committed to bringing safe, reliable power infrastructure to communities, while creating value for those associated with our projects. "Finding a partner and investor aligned with these core principles was imperative, and ArcLight shares decades of complementary expertise built on strong relationships. These combined resources and deep connections throughout the energy sector enable us to deliver large-scale power solutions to markets, utilities, data centre developers, and hyperscalers." With a history that includes managing assets totalling more than 65GW since its inception in 2001, ArcLight has demonstrated considerable experience overseeing large electric and gas transmission networks valued at above $80bn. While specific financial details remain private, Latham & Watkins represents ArcLight legally during this transaction. Meanwhile, Morgan Stanley acts as financial advisor alongside Sidley Austin, which is providing legal counsel for Advanced Power. "ArcLight plans $5bn investment in North American power infrastructure" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Wall Street Journal
24-07-2025
- Business
- Wall Street Journal
Private Equity Gets Bullish on Natural Gas-Fired Power Plants
Private-equity firms that invest in power assets are pouring billions of dollars into natural gas-fired plants as the renewable-energy sector faces headwinds. Many bet that surging demand for electricity and a shortage of equipment to build new gas-fired plants will boost the value of existing ones. Earlier this month, ArcLight Capital Partners agreed to acquire the Middletown Energy Center natural gas-fired power plant in Ohio's Butler County. The 484-megawatt plant benefits from a proliferation of data centers in the state that need a lot of electricity to power artificial-intelligence systems, said Angelo Acconcia, a partner at Boston-based ArcLight.
Yahoo
23-05-2025
- Business
- Yahoo
Analysis-US pipeline firms wrestle buy/build conundrum as Trump pushes energy expansion
By David French NEW YORK (Reuters) -President Donald Trump's pro-energy policies were meant to speed the construction of the United States' next generation of energy infrastructure, but many oil and gas pipeline operators would still rather buy than build their way to expansion due to a host of factors impeding large projects. Trump declared an energy emergency on his first day in office and has issued directives to support exports, reform permitting and roll back environmental standards. Since his November election, a number of large-scale projects have been greenlit, including a liquefied natural gas terminal and a handful of pipelines. But higher costs from a global trade war sparked by U.S. tariffs, labor shortages, low oil prices, and the risk of legal snags mean many companies are generally reluctant to commit to bold new construction. Instead, operators see mergers and acquisitions as a more efficient way to grow. In the first quarter of this year, 15 U.S. midstream deals were struck, the highest quarterly number since the final three months of 2021, according to energy tech company Enverus. "We have spent a lot of time thinking about the buy versus build question and, at this time, we're seeing more opportunities to buy assets," said Angelo Acconcia, a partner at ArcLight Capital Partners, which invests in energy infrastructure. Acconcia said factors including tariffs and high demand for supplies and labor made it challenging to calculate the economics of building a project. One of the most prevalent trends in dealmaking so far in 2025 has been pipeline companies buying back stakes in joint ventures, previously sold to help fund the initial development costs of prior-year builds. Targa Resources said in February it would acquire preferred equity in its Targa Badlands pipeline system from Blackstone for $1.8 billion, while MPLX said in the same month it would buy the 55% interest in the BANGL natural gas pipeline previously owned by WhiteWater Midstream and Diamondback Energy for $715 million. Private equity owners of energy infrastructure are keen sellers, having spent recent years developing systems that are now online. Northwind Midstream, a New Mexico-focused pipeline operator, is currently being marketed for sale by Five Point Infrastructure, for example. TARIFFS WEIGH In recent years, U.S. oil and gas pipeline projects have faced regulatory hurdles and robust environmental opposition, resulting in years of delay and substantial cost overruns. The Mountain Valley Pipeline, a natural gas conduit owned by an EQT Corp-led group, started operating last June but took six years to build and cost more than double its initial $3.5 billion budget. While the industry has welcomed Trump's pro-fossil fuel sentiment, some of his other policies - including tariffs on products like steel - are pushing up the cost of new energy projects. Weak global crude prices have also prompted warnings from U.S. oil and gas producers that they could curtail output growth, making pipeline firms cautious about new spending. Some companies, including Kinder Morgan, said they believe there are better economics in smaller-scale projects that expand existing infrastructure than in big new ones. Others are wary of even those types of projects. DT Midstream CEO David Slater said last month that while some bite-size expansion may continue on the company's LEAP system in the Haynesville basin, he wanted to see how local producers react to commodity price movements before considering new plans. "I think we just need to let the clock run here a little bit, see how the basin responds," he told analysts on a call. OPTING TO BUILD Despite the hurdles, the math still favors new construction for some companies. Energy Transfer said it will build the $2.7 billion Hugh Brinson natural gas pipeline in Texas, and Tallgrass Energy plans to construct a pipeline to move natural gas from the Permian to its Rockies Express Pipeline running through Colorado and Wyoming. "Generally, on buy versus build, if you have the opportunity to build, you build because the returns are largely better," said Ali Akbar, managing director of energy investment banking at Greenhill, a Mizuho affiliate. He said buying an asset like a pipeline can sometimes cost two times more than building something similar. Williams Companies unveiled in March its $1.6 billion Socrates project to build natural gas infrastructure to support data center development in Ohio and has said Washington's newfound support for projects is a welcome change. "It's nice to see some people that actually think their job is to help get infrastructure built as opposed to being obstructive," outgoing CEO Alan Armstrong said on an earnings call this month.
