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Veolia Energy North America, a leading provider of sustainable energy services, and I Squared Capital, a global infrastructure investment firm, entered into an agreement with NRG North America LLC, an affiliate of NRG Energy, Inc. to purchase its 256-megawatt Kendall Station, located in Cambridge, Mass.
The Kendall Cogeneration Station uses natural gas as a primary fuel source to produce electrical and steam energy. A planned reconfiguration of the facility, including completion of Veolia’s additional 7,000-foot steam pipeline extension, will deliver energy to Veolia’s customers in Boston and Cambridge while further reducing greenhouse gas emissions by approximately 475,000 tons per year, or the equivalent of removing 80,000 cars from the roads.
“The Kendall Cogeneration Station is core to our Boston area green energy strategy,” said Bill DiCroce, executive vice president and chief operating officer of Veolia Environnement North America’s Municipal and Commercial Business. “We are excited to work with I Squared Capital, and continue our successful relationship with their investment team and look forward to partnering with them on other investment opportunities. We are beginning operation of our pipeline extension, which when completed will capture energy from the Kendall Station otherwise lost to the environment and use it to bring additional steam supply to Boston.”
Adil Rahmathulla, Partner at I Squared Capital, said, “We are pleased to partner with Veolia, a leading global company with deep knowledge and experience in the combined heat and power sector. The acquisition of Kendall Cogeneration follows our strategy of investing in the U.S. energy infrastructure sector with a focus on growth opportunities. Cogeneration facilities should be encouraged across the U.S. as a means for efficient energy consumption and carbon emissions reduction.”
Terms of the agreement were not disclosed. Veolia will provide operations and management services as part of the acquisition which is expected to close this year pending regulatory approval by the Federal Energy Regulatory Commission.