ArcLight Capital Partners to Expand Its Energy Portfolio with Kleen Power Acquisition
On April 14, 2025, ArcLight Capital Partners, LLC, along with its affiliates, made a significant move in the energy sector by announcing plans to acquire the equity interests of Osaka Gas USA Corporation and Kyuden International Americas Inc. in Kleen Energy Systems, LLC, also known as Kleen Power. This strategic acquisition comes at a time when the demand for reliable and efficient power generation is surging, particularly due to the growing influence of artificial intelligence (AI) and electrification initiatives that drive the need for sustainable energy solutions.
Kleen Power is a notable power generation asset located in New England, boasting 620 megawatts of natural gas-fired capacity. It stands out as one of the top-tier assets in the region, making it well-equipped to address the increasing power demands related to the burgeoning data center market and the electrification of heating and transportation sectors. As the adoption of electric vehicles accelerates and more households shift to electric heating systems, the demand for a dependable power infrastructure becomes paramount.
Since its inception in 2001, ArcLight Capital has built a formidable reputation in the energy investment landscape, having owned and operated over 65 gigawatts of assets and 47,000 miles of electric and gas transmission infrastructure, amounting to approximately $80 billion in enterprise value. ArcLight’s extensive experience in managing and investing in power assets enables them to effectively respond to the challenges presented by rapid technological advancements and evolving consumer needs.
Angelo Acconcia, a partner at ArcLight, emphasized that the acquisition of Kleen Power aligns with the company’s long-standing investment strategy, which has seen the firm engage in over 50 power investments over the last two decades. He stated that ArcLight’s expertise, coupled with its operational capabilities, positions the firm to enhance the value of Kleen Power and reinforce the reliability of its energy supply.
Andrew Brannan, Managing Director at ArcLight, declared that Kleen Power serves as a critical component of energy infrastructure, particularly given its role as one of the most efficient natural gas-fired power plants in the New England market. He noted that the acquisition meets a significant and growing market need as society increasingly turns to cleaner energy options while maintaining high standards of reliability.
Upon closing the deal, ArcLight intends to appoint Alpha Generation Services, LLC, also known as AlphaGen, to oversee the management of Kleen Power. AlphaGen is a strategic partnership within ArcLight that focuses on owning and operating vital power infrastructure, ensuring that they continue to provide secure and sustainable energy sources to satisfy the urgent demands of electrification.
The transaction is subject to regulatory approvals and is anticipated to finalize sometime in 2025. The financial details of the acquisition have not been disclosed, but with Latham & Watkins LLP serving as legal counsel and MUFG acting as financial advisor, the transaction is set to strengthen ArcLight’s already substantial presence in the North American power infrastructure sector.
In conclusion, ArcLight’s acquisition of Kleen Power not only signifies a bold investment move but also underscores the critical importance of expanding energy infrastructure to support the sustained growth of AI and electrification-driven demand. With rising expectations for power reliability and sustainability, this acquisition could play a significant role in shaping the future landscape of energy supply across the New England region and beyond.
Kleen Power is a notable power generation asset located in New England, boasting 620 megawatts of natural gas-fired capacity. It stands out as one of the top-tier assets in the region, making it well-equipped to address the increasing power demands related to the burgeoning data center market and the electrification of heating and transportation sectors. As the adoption of electric vehicles accelerates and more households shift to electric heating systems, the demand for a dependable power infrastructure becomes paramount.
Since its inception in 2001, ArcLight Capital has built a formidable reputation in the energy investment landscape, having owned and operated over 65 gigawatts of assets and 47,000 miles of electric and gas transmission infrastructure, amounting to approximately $80 billion in enterprise value. ArcLight’s extensive experience in managing and investing in power assets enables them to effectively respond to the challenges presented by rapid technological advancements and evolving consumer needs.
Angelo Acconcia, a partner at ArcLight, emphasized that the acquisition of Kleen Power aligns with the company’s long-standing investment strategy, which has seen the firm engage in over 50 power investments over the last two decades. He stated that ArcLight’s expertise, coupled with its operational capabilities, positions the firm to enhance the value of Kleen Power and reinforce the reliability of its energy supply.
Andrew Brannan, Managing Director at ArcLight, declared that Kleen Power serves as a critical component of energy infrastructure, particularly given its role as one of the most efficient natural gas-fired power plants in the New England market. He noted that the acquisition meets a significant and growing market need as society increasingly turns to cleaner energy options while maintaining high standards of reliability.
Upon closing the deal, ArcLight intends to appoint Alpha Generation Services, LLC, also known as AlphaGen, to oversee the management of Kleen Power. AlphaGen is a strategic partnership within ArcLight that focuses on owning and operating vital power infrastructure, ensuring that they continue to provide secure and sustainable energy sources to satisfy the urgent demands of electrification.
The transaction is subject to regulatory approvals and is anticipated to finalize sometime in 2025. The financial details of the acquisition have not been disclosed, but with Latham & Watkins LLP serving as legal counsel and MUFG acting as financial advisor, the transaction is set to strengthen ArcLight’s already substantial presence in the North American power infrastructure sector.
In conclusion, ArcLight’s acquisition of Kleen Power not only signifies a bold investment move but also underscores the critical importance of expanding energy infrastructure to support the sustained growth of AI and electrification-driven demand. With rising expectations for power reliability and sustainability, this acquisition could play a significant role in shaping the future landscape of energy supply across the New England region and beyond.
Topics Energy）
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