ArcLight Acquires Stake in Kleen Energy Systems
Deal News | Apr 14, 2025 | Arclight
ArcLight Capital Partners, a significant player in private power infrastructure investment, has secured purchase agreements with Osaka Gas USA Corporation and Kyuden International Americas to acquire their equity interests in Kleen Energy Systems. Kleen Power, a leading 620 MW natural gas power generation asset, is strategically positioning itself to exploit burgeoning AI-driven data center developments and electrification demands. ArcLight, with extensive experience in energy asset management and operation, aims to leverage its expertise to enhance the value of Kleen Power and address increasing electricity infrastructure needs. Post-acquisition, management duties for Kleen Power will transition to Alpha Generation Services, led by Curt Morgan. This acquisition aligns with ArcLight's mission to deliver crucial electrification solutions amidst rising power demand due to AI and electric vehicle uptake. Legal and financial advisory services for ArcLight in this transaction are handled by Latham & Watkins LLP and MUFG, respectively.
Sectors
- Energy Infrastructure
- Private Equity
Geography
- United States – The primary geographical focus of the article is the United States, particularly New England where Kleen Energy Systems operates.
- Japan – The selling stakeholders, Osaka Gas USA Corporation and Kyuden International Americas, are subsidiaries of Japanese companies, reflecting the international aspect of the transaction.
Industry
- Energy Infrastructure – The article involves substantial investment in energy infrastructure, specifically a natural gas-fired power generation facility, which is an integral part of energy distribution and reliability.
- Private Equity – ArcLight, a private equity firm, is executing an acquisition of equity stakes in Kleen Energy, showcasing strategic investment in energy assets.
Financials
- – Financial terms of the transaction were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ArcLight Capital Partners, LLC | Acquirer | Company | A leading infrastructure investor focused on critical electrification infrastructure investments. |
| Osaka Gas USA Corporation | Seller | Company | A subsidiary of Osaka Gas, a major energy company headquartered in Japan. |
| Kyuden International Americas Inc. | Seller | Company | A subsidiary of Kyushu Electric Power Co., Inc. involved in international business development. |
| Kleen Energy Systems, LLC | Target Company | Company | A natural gas-fired power generation facility located in New England, focusing on providing reliable energy supply. |
| Alpha Generation Services, LLC | Management | Company | An affiliate of ArcLight that will manage Kleen Power post-acquisition. |
| Latham & Watkins LLP | Legal Advisor | Company | Acting as legal counsel to ArcLight for this transaction. |
| MUFG | Financial Advisor | Company | Providing financial advisory services to ArcLight. |
| Angelo Acconcia | Partner at ArcLight | Person | Provides insight into ArcLight's strategic approach in the acquisition. |
| Andrew Brannan | Managing Director at ArcLight | Person | Highlights the significance of Kleen Power in the New England market. |
| Curt Morgan | Led by | Person | Leader of Alpha Generation Services overseeing Kleen Power management. |