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Researched by Industrial Info Resources (Sugar Land, Texas)--A 345-megawatt (MW) expansion of the Mankato Energy Center in Minnesota is under development, but it will be in the hands of a new owner. Southern Company (NYSE:SO) (Atlanta, Georgia) subsidiary Southern Power will buy the power center for $395.5 million from Calpine Corporation (NYSE:CPN) (Houston, Texas), the companies announced Thursday.
Both companies noted the Mankata Energy Center II expansion, which had received capital approval as of June this year. When complete, the natural gas-fired, combined-cycle power facility will have 720 MW of generation capacity. The expansion project has a total investment value of $194 million, with kickoff set for second-quarter 2017 and completion in second-quarter 2019. The project includes construction of a 242-MW Siemens natural gas-fired combustion turbine generator with a heat recovery steam generator to convert the existing one-on-one combined-cycle configuration to a two-on-one configuration to provide additional power.
Mankato Energy Center I is contracted with Northern States Power, a subsidiary of Xcel Energy Incorporated (NYSE:XEL) (Minneapolis, Minnesota), through 2026. The expansion is expected to serve an additional 20-year power purchase agreement with Northern States Power, according to Southern Power.
Calpine said the sale is part of its plan to divest plants in non-core regions. It will use the sales proceeds to reduce corporate debt and for other purposes.
Southern Power will now own 10 combined-cycle and combustion-turbine, natural gas-fueled power plants across five states, representing 9,300 MW of generating capacity operating or under development, the company said.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Both companies noted the Mankata Energy Center II expansion, which had received capital approval as of June this year. When complete, the natural gas-fired, combined-cycle power facility will have 720 MW of generation capacity. The expansion project has a total investment value of $194 million, with kickoff set for second-quarter 2017 and completion in second-quarter 2019. The project includes construction of a 242-MW Siemens natural gas-fired combustion turbine generator with a heat recovery steam generator to convert the existing one-on-one combined-cycle configuration to a two-on-one configuration to provide additional power.
Mankato Energy Center I is contracted with Northern States Power, a subsidiary of Xcel Energy Incorporated (NYSE:XEL) (Minneapolis, Minnesota), through 2026. The expansion is expected to serve an additional 20-year power purchase agreement with Northern States Power, according to Southern Power.
Calpine said the sale is part of its plan to divest plants in non-core regions. It will use the sales proceeds to reduce corporate debt and for other purposes.
Southern Power will now own 10 combined-cycle and combustion-turbine, natural gas-fueled power plants across five states, representing 9,300 MW of generating capacity operating or under development, the company said.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
