Washington, D.C. (April 7, 2014) — Ullico Inc. today announced the closing of an approximately $58 million investment in the Carroll County Energy Project, a 700- megawatt combined cycle natural gas electric generating facility to be constructed in northeastern Ohio.
The state-of-the-art facility will sell energy, capacity and ancillary services into the PJM, the world's largest wholesale power market that spans 13 Mid-Atlantic and Midwestern states. The project has generation capacity to power approximately 750,000 homes.
"This project serves a critical need to replace obsolete generation assets being retired in PJM and takes advantage of proximity to domestic natural gas production as well as transmission and pipeline infrastructure," said Rohit Syal, head of acquisitions for Ullico's infrastructure investments.
Approximately 700 union construction jobs are expected to be created during peak construction as well as 20 to 30 well-paying permanent jobs during operation. Advanced Power developed the project and will serve as construction and asset manager. Bechtel Power is building the project under a turnkey construction contract. Ethos Energy will operate the facility.
"This transaction is a great example of employing labor capital to create jobs for skilled union workers," said Edward M. Smith, president and CEO of Ullico Inc. "In addition to creating good paying construction and operating jobs, this project will produce efficient, low-cost energy for families and businesses in Ohio and throughout the Midwest."
The project is strategically located near the Utica and Marcellus natural gas production, as well as AEP’s 345 kV transmission lines and Kinder Morgan’s Tennessee Gas Pipeline system and will employ efficient General Electric gas turbines to produce low-cost energy to serve the energy needs of the Midwest.
"This investment complements Ullico’s portfolio of operational, contracted renewables and transmission assets, providing benefits of investing in a development asset and the expected growth in conventional generation," said Jeff Murphy, portfolio manager for Ullico's infrastructure business.
Ullico Inc., through its infrastructure business, currently has investments in the utility and energy sectors and is exploring opportunities in all core sectors including transportation and social infrastructure.
BNP Paribas (Left Lead, Administrative Agent) and Credit Agricole (Right Lead, Syndication Agent, Hedge Coordinator) served as Coordinating Lead Arrangers and Joint Bookrunners in forming a syndicate of ten financial institutions to debt finance the project. Whitehall Capital served as the sponsor’s financial advisor. Morgan Lewis & Bockius served as sponsor’s project counsel.