Capital Power, Manulife acquire full interest in Midland Cogeneration Venture natural gas facility
Together, Capital Power Corporation and Manulife Investment Management secured a 100 percent interest in and subsequent acquisition of the 1,633 megawatt Midland Cogeneration Venture facility and its owner, the MCV Holding Company.
Midland Cogen is a natural gas combined cycle cogeneration facility in Michigan. It’s the largest gas-fired cogeneration facility in North America and its power is currently locked into long-term contracts through 2030 and 2035, respectively. The acquisition was first announced in July.
The purchase went through for $894 million, subject to working capital and other closing adjustments. It’s a 50/50 joint venture between Manulife and Capital Power, each of which contributed $186 million to the purchase. Now, Capital Power will run operations and maintenance for the facility. Its management of assets there will also gain it an annual management fee.
As part of the purchase, the companies assumed $521 million of project level debt. However, with anticipated market conditions, they anticipate being able to recontract the facility beyond 2030 and for it to provide major support to grid reliability during the expanding transition to renewable energy.
