MetLife Investment Management, based in Whippany, announced April 13 that it was the sole lender for funding of about $200 million to support the decommissioning of the state’s last two coal-fired power plants.
Last month, the New Jersey Board of Public Utilities approved a petition filed by Atlantic City Electric Co. that modifies the power purchase and sale agreements between ACE and Chambers Cogeneration Ltd. and Logan Generating Co., resulting in the end of coal-fired generation as-is.
The MIM funding will allow Starwood Energy Group, the majority owner of the two plants, and ACE to move forward with proposals to withdraw ACE’s ongoing agreements with the coal plants. The two plants are expected to stop producing coal-fired power at the end of May 2022, nearly 30 months ahead of schedule, according to MIM.
MIM’s Private Capital team led the structuring and financing on behalf of institutional clients and the general account of MetLife. The financing will be used to pay for decommissioning costs, including payments to suppliers and operators, and repayment of outstanding outstanding debt.
According to the announcement, the two plants’ agreement to stop generating coal-fired electricity will lead to redevelopment and a transition to other forms of electricity generation.
Decommissioning is expected to reduce approximately 4.3 tonnes (or 3.9 million tonnes) of carbon dioxide from the atmosphere, equivalent to eliminating over 750,000 passenger cars per year and savings estimated at $30 million for ACE customers. The transaction also supports the state’s Energy Master Plan, which aims to reduce carbon emissions levels by 80% and achieve 100% clean energy generation by 2050.
“We are committed to continuing to support the energy transition through our investments, which we tailor to the needs of our borrowers while targeting positive community outcomes,” said Nancy Mueller Handal, Head of Private Fixed Income. and alternatives to MIM. statement. “We are proud to be a partner in a project that will lead to cleaner power generation by transferring New Jersey’s last two coal-fired power plants, which strengthens our global decarbonization efforts as we collectively strive to a greener future.”
Himanshu Saxena, CEO of Starwood Energy, added, “We are grateful to MetLife Investment Management for working with us on this very important transaction as we help move New Jersey toward a cleaner future and retire the last two power plants. coal from New Jersey.
According to the announcement, MIM is managing $4.5 billion in approximately 150 investments in energy transition renewable energy technologies, including solar and wind power generation, hydropower, geothermal power, biomass and batteries.