NRG Energy closed on the acquisition of the Gregory cogeneration plant in Corpus Christi, Texas. The cogeneration plant is equivalent to an about 560 MW Combined Cycle Gas Turbine plant with generation capacity of about 400 nominal MW and steam capacity of more than a million pounds per hour (160 MW of electricity equivalent).
NRG is paying about $244 million in cash for the plant, exclusive of adjustments relating to working capital. Counting both electrical generation and steam production, this cost equates to about $436 per kW.
The Gregory cogeneration plant provides steam, processed water and a small percentage of its electrical generation to the Corpus Christi Sherwin Alumina plant. The majority of the baseload power generation is available for sale in ERCOT. This adds greater NRG capacity in ERCOT’s south zone, where the company serves retail load and looks to continue to expand its customer base in this growing part of the state.
The Gregory cogeneration unit came online in 2000. The current operator, DPS Gregory, will continue to operate the plant until a transition to NRG operations is completed.
The plant was acquired from a consortium of affiliates of Atlantic Power Corp., John Hancock Life Insurance Co. (U.S.A.), and Rockland Capital, LLC.