ArcLight Capital Partners said its units ArcLight Energy Partners Fund II, L.P. and ArcLight Energy Partners Fund V, L.P. have entered into an agreement to sell 100 percent of the indirect interests in Michigan Power LP, the owner of a cogeneration power plant located in Ludington, Michigan to a unit of Rockland Power Partners II, L.P.
Michigan Power is a fully contracted, 125 MW natural gas-fired combined cycle cogeneration plant that sells its entire electric output to Consumers Energy Co. under the terms of a long-term power purchase agreement.
Additionally, the project supplies steam and compressed air to Occidental Chemical Corp.’s Ludington plant under the terms of a steam sales agreement. The sale is expected to close by year-end following receipt of customary approvals.
ArcLight is a private equity firms focused on North American and Western European energy assets. Since its establishment in 2001, ArcLight has invested over $13.1 billion across multiple energy cycles in more than 90 investments. Headquartered in Boston with an additional office in Luxembourg, the firm’s investment team brings energy expertise, industry relationships and value creation capabilities to its portfolio.