ArcLight Acquires Stake in Kleen Power
Deal News | Apr 14, 2025 | Arclight
ArcLight Capital Partners, a leading infrastructure investment firm, has signed a definitive agreement to acquire indirect common equity ownership interests in Kleen Energy Systems from Osaka Gas USA Corporation and Kyuden International Americas Inc. Kleen Power is a 620 MW natural gas-fired power generation asset in New England, strategically positioned to meet increasing power demands driven by AI and electrification trends. ArcLight, with its extensive experience in the energy sector, aims to leverage its operational and technical resources to enhance the asset's value. The transaction is anticipated to close in 2025 following regulatory approvals, with Latham & Watkins LLP as legal counsel and MUFG as the financial advisor.
Sectors
- Energy
- Infrastructure
- Private Equity
Geography
- United States – The transaction involves ArcLight Capital Partners, a U.S.-based firm, and Kleen Power, which operates in the New England energy market.
- Japan – Osaka Gas USA Corporation and Kyuden International Americas Inc., subsidiaries of Japanese corporations, are selling their stakes in Kleen Energy Systems.
Industry
- Energy – The article discusses the acquisition of a natural gas-fired power generation asset by ArcLight, highlighting its significance in the energy sector.
- Infrastructure – ArcLight specializes in power infrastructure investments, emphasizing the need for sustainable and reliable energy solutions as outlined in the acquisition strategy.
- Private Equity – ArcLight operates as a private equity firm focusing on energy and infrastructure investments, particularly in renewable and sustainable energy projects.
Financials
- Not Disclosed – The financial terms of the transaction between ArcLight and the sellers of Kleen Energy interests have not been disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ArcLight Capital Partners, LLC | Acquirer | Company | ArcLight is a leading infrastructure investor with significant experience in the energy sector, managing one of the largest private power infrastructure portfolios in North America. |
| Kleen Energy Systems, LLC | Target Company | Company | A top-tier natural gas-fired power generation asset in the New England market, capable of meeting growing power demands due to AI and electrification trends. |
| Osaka Gas USA Corporation | Seller | Company | A subsidiary of a Japanese energy company, divesting its stake in Kleen Energy Systems. |
| Kyuden International Americas Inc. | Seller | Company | A subsidiary of a Japanese energy corporation, participating in the sale of its interest in Kleen Energy Systems. |
| Latham & Watkins LLP | Legal Advisor | Company | Provided legal counsel to ArcLight for this transaction. |
| MUFG | Financial Advisor | Company | Served as the financial advisor to ArcLight in the acquisition of Kleen Energy interests. |
| Alpha Generation Services, LLC | Management Company | Company | ArcLight's power management team that will take over the management of Kleen Power post-acquisition. |