First Reserve Sells Stake in Power Plant

Siemens Financial Services has purchased a 10.75% claim in the Longview Coal Project from First Reserve. The deal includes a pro-rata funding obligation and is expected to close within two months. Longview, owned by GenPower Holdings, is a coal-fired generating facility currently under construction in West Virginia. Siemens is one of the companies currently working on the construction of the power plant.

According to the PitchBook Platform, private equity has invested in 12 companies operating coal-fired power generating plants since 2001. ArcLight Capital Partners has made three investments in this sector, acquiring Caithness Energy in 2001, Epsilon Power Partners in 2002, and Crystal Creek Coal in 2003. The largest deal in this timeframe was the carveout of FirstLight Power Resources by Energy Capital Partners for $1.02 billion in 2006.