Fengate acquires significant stake in 440-megawatt Texas cogeneration asset

Fengate is pleased to announce financial close on the acquisition of a 50% interest in Freeport Power Limited (FPL), owner of a 440-megawatt cogeneration facility in Texas.

FPL is located near the Freeport Energy Center, a 260-megawatt cogeneration facility owned and managed by Fengate. The two facilities play an integral role in providing reliable and cost-effective power and steam to Dow’s Freeport site, the largest integrated chemical manufacturing complex in the Western Hemisphere.

Fengate acquired interest in FPL under its strategic operating partnership with asset manager Ironclad Energy. The partnership was established in 2022 to acquire and operate cogeneration, district energy and other power generation projects across the United States and Canada. Fengate and Ironclad Energy announced the acquisition of the Morris Cogeneration facility, near Chicago, in December 2023.

“We are thrilled to have closed this acquisition, which aligns with our strategy of acquiring behind-the-meter cogeneration projects with strong industrial partners like Dow,” said Greg Calhoun, Managing Director, Infrastructure Investments at Fengate. “Combined heat and power projects like FPL will continue to play an important role in the U.S. power industry – especially for hard-to-abate industrial sectors – to ensure reliability, efficiency and affordability.”

“This is our second acquisition with Fengate, and we look forward to continuing our partnership to optimize and expand the portfolio,” said Christopher Fanella, President and CFO of Ironclad Energy.

Fengate is managing this investment on behalf of Fengate Infrastructure Fund IV and its affiliated entities, including an investment by the LiUNA Pension Fund of Central and Eastern Canada.