Manulife and Capital Power will each contribute $186 million. Capital Power will receive an annual management fee and assume responsibility for the operation and maintenance of the plant.
“(Midland Cogen) is the largest gas-fired cogeneration facility in the United States and, combined with its excellent reliability history and operating flexibility, Midland Cogen is a critical asset in supporting grid reliability during the transition. towards renewable energy and is extremely well positioned for contract renewals beyond 2030,” said Brian Vaasjo, President and CEO of Capital Power.
The transaction is expected to close in the third quarter of 2022, subject to regulatory approvals and other customary closing conditions.
“We are proud to expand our relationship with Capital Power, a partner with tremendous operational and asset management expertise,” said Scott Kushner, Managing Director, Infrastructure Investments at Manulife Investment Management. “As the power grid continues to further integrate renewable assets, Midland Cogen serves as a flexible, responsive, and stable asset that is critical to serving electricity customers in Michigan.”
MCV is the largest natural gas-fired combined electric and steam generating facility in the United States. It supplies steam to Dow, which is the site’s biggest customer. The facility is capable of continuously producing 1,633 megawatts of electricity and, in parallel, producing process steam at a rate of 1.5 million pounds per hour. That’s enough electrical power to power a city of over a million homes and, at the same time, continuously supply large industrial facilities with all their process steam.