ArcLight’s power management team, Alpha Generation Services, will manage Kleen Power. Credit: T. Schneider/Shutterstock.

ArcLight Capital Partners (ArcLight) has made a definitive purchase agreement with Osaka Gas USA and Kyuden International Americas to acquire their interests in Kleen Energy Systems, a 620MW natural gas-fired power generation asset in New England, US.

The acquisition aligns with ArcLight’s strategy to address increasing power demand driven by AI and electrification trends.

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AI-driven data centre development and increased electrification, such as electric vehicle adoption, are driving the demand for sustainable and affordable power solutions.

ArcLight partner Angelo Acconcia stated: “ArcLight’s acquisition of Kleen Power leverages its deep investment expertise across over 50 power investments since 2001, along with its ability to acquire strategic power infrastructure assets and utilise ArcLight’s value added investment playbook and resources to enhance value and the ability to provide critical and reliable power.”

The transaction, expected to close in 2025, is subject to regulatory approvals.

ArcLight’s power management team, Alpha Generation Services, led by Curt Morgan, will manage Kleen Power.

ArcLight managing director Andrew Brannan stated: “Kleen is a high-quality combined cycle providing critical infrastructure and reliable energy supply as one of the most efficient natural gas-fired assets in the New England market, serving a real and growing market need.”

Legal counsel for ArcLight is Latham & Watkins, with MUFG as financial advisor.

Since 2001, ArcLight has managed more than 65GW of assets and 47,000 miles of electric and gas transmission infrastructure, with an enterprise value of $80bn.

Alpha Generation, a strategic partnership owned by an affiliate of ArcLight, recently announced its plans to provide an additional 450MW of electricity generation to four existing power plants located in the US states of Maryland, New Jersey and Ohio.

This move forms part of PJM’s reliability resource initiative, which seeks to tackle the rising demand for power driven by electrification and industrial needs.