ARCLIGHT TO ACQUIRE OWNERSHIP INTEREST IN KLEEN ENERGY SYSTEMS

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Aug 14, 2023, 09:00 ET

Efficient 620-Megawatt Power Infrastructure Asset in Middletown, Conn.

BOSTON, Aug. 14, 2023 /PRNewswire/ -- Recently, an affiliate of ArcLight Capital Partners, LLC (collectively, "ArcLight") entered into a definitive purchase agreement with Sojitz Corporation of America ("Sojitz") to acquire Sojitz's indirect ownership interests in Kleen Energy Systems, LLC ("Kleen"), including 100% of the preferred equity and a minority common equity ownership interest. Kleen owns an efficient 620-megawatt natural gas-fired power plant located in Middletown, Connecticut. Financial terms of the private transaction were not disclosed.

Completed in July 2011, Kleen is one of New England's newest and most efficient natural gas combined-cycle plants, providing critical capacity, energy, and ancillary services. In a region with significant expected load growth driven by electrification, the efficient and dispatchable output provided by Kleen will allow the integration of intermittent renewable resources into the New England electricity market over the coming decades. Kleen benefits from stable cash flows under a capacity supply agreement with Connecticut Light & Power, as well as an advantaged market heat rate and dual fuel capability that allows reliable, dispatchable output into the New England market.

"Kleen builds upon ArcLight's focus on the electrification mega trend and on supporting the energy grid of the future, which we expect to include a complementary mix of renewable resources and reliable, low carbon power infrastructure," said Dan Revers, Managing Partner and Founder of ArcLight. "The high-quality asset provides critical infrastructure and grid stability services as one of the core power suppliers in the New England market."

The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals.

Latham & Watkins LLP is serving as legal counsel to ArcLight. Mintz is serving as legal counsel to Sojitz.

About ArcLight
ArcLight Capital Partners, LLC is an experienced, middle-market, value added infrastructure investment firm. Founded in 2001, ArcLight helped establish infrastructure as an asset class by pioneering an asset-based private equity approach to investing in infrastructure and has since built an experienced and successful investment platform. Based in Boston, ArcLight's investment team employs a value-added, operationally intensive investment approach that benefits from its dedicated in-house technical, operational, and commercial specialists and partners, as well as the firm's approximately 1,800-person asset management operational partner. More information about ArcLight can be found at www.arclight.com.

About Sojitz
Headquartered in Tokyo, Sojitz Corporation consists of approximately 400 subsidiaries and affiliates located in Japan and throughout the world, developing wide-ranging general trading company operations in a multitude of countries and regions, and over 20,000 employees around the world. More information about Sojitz can be found at www.sojitz.com/en.

SOURCE ArcLight Capital Partners