#United States #New York #Lotus Partners #Caithness Energy #Long Island Energy

Lotus Infrastructure Partners Acquires Caithness Long Island Energy Center

Lotus Infrastructure Partners, LP, along with its affiliates, has made a significant move in the energy sector by entering into a definitive agreement to acquire the Caithness Long Island Energy Center from Caithness Energy, L.L.C. This acquisition marks a pivotal step in Lotus's initiative to bolster power Generation in New York.

Overview of the Acquisition

The deal will see Lotus obtaining 100% of the economic interests in the Caithness Long Island Energy Center, one of the most efficient natural gas-fired generation facilities in the NYISO area. Situated in Suffolk County, New York, the plant features a capacity of 365 megawatts and commenced operations in 2009. It currently contributes around 26% of the net power generation on Long Island, making it an indispensable asset for the region’s energy needs.

Himanshu Saxena, Chairman and CEO of Lotus, emphasized the importance of this acquisition by stating, "As an extremely efficient power plant with one of the lowest heat rates in NYISO Zone K, Caithness Long Island is excellently positioned to deliver reliable power to the New York market for many years to come." He highlighted that as investments in industrial and data center projects flourish in the area, this energy center will play an integral role in satisfying the demand for dependable power.

Implications for Long Island and New York

The acquisition of Caithness Long Island Energy Center is expected to enhance the reliability and cost-effectiveness of electricity supply available to Long Island's residents and businesses. The energy center is known for its low operational costs, which have a significant impact on customer bills, proving beneficial for the local economy.

Jeffrey Delgado, Managing Director at Lotus, expressed enthusiasm about adding Caithness Long Island to the company’s portfolio, noting their vast experience in managing power generation capacity in New York. He stated, "We look forward to enhancing operational excellence and contributing positively to the local community while maintaining CLI’s impressive performance record."

The Caithness Legacy and Future Plans

Ross D. Ain, President of Caithness Energy, articulated the pride his team feels about the impact the Caithness Long Island Energy Center has had on the region over the past 16 years. The plant is renowned for its energy efficiency and is recognized for significantly reducing greenhouse gas emissions in New York through its operations, which have replaced older, less efficient plants.

The transition of ownership to Lotus Infrastructure Partners is viewed positively by all parties involved. Ain emphasized the commitment to responsible stewardship of the facility, ensuring that it continues to contribute positively to the Long Island community.

Expert Advisors in the Deal

Legal advisory for Lotus Infrastructure in this transaction is being provided by King & Spalding LLP, while Lazard serves as the exclusive financial advisor. On the other side, Caithness Energy has enlisted Paul Hastings LLP for legal counsel.

About Lotus Infrastructure Partners

Lotus Infrastructure specializes in investments across various sectors including renewable power generation, electric transmission, and natural gas. With substantial capital raised exceeding $3 billion and transactions totaling over $8 billion in enterprise value, they bring extensive expertise and integrity to the infrastructure investment space. For further information about their initiatives and operations, visit their website at www.lotusinfrastructure.com.

About Caithness Energy

Caithness Energy is a privately held company with over 30 years of innovative power generation project development experience. Based in Red Bank, New Jersey, Caithness Energy is recognized for pioneering low-carbon solutions that ensure reliable power delivery while upholding environmental commitments.

In conclusion, this acquisition not only secures a key asset for Lotus but also signifies a progressive step towards enhancing Long Island's power infrastructure.