17 October 2006 — GenPower, LLC and First Reserve Corp., a global private equity firm, announced their agreement to form GenPower Holdings, L.P., as a joint venture to pursue the development, ownership, acquisition and operation of power generation facilities in the United States and abroad.
GenPower is contributing to the joint venture a portfolio of projects under development and an existing team of power development professionals to manage the Company. The first plant to be financed by the new entity is expected to be the Longview coal project, a supercritical, pulverized coal-fired generating facility to be located in Maidsville, West Virginia, US. The Longview plant will be one of the largest investments in the history of West Virginia and it follows a long tradition of involvement by First Reserve Corporation in the state.
Longview will represent a total investment of approximately $1.8 billion, the equity for which is expected to be provided by First Reserve through GenPower Holdings. Longview has received necessary permits and is currently finalizing EPC contract negotiations with a consortium of Siemens Power Generation, Inc. and Aker Kvaerner Songer, Inc. Ground breaking is expected in January 2007 and commercial operation in late 2010.
Longview will sell a portion of its output to various parties under intermediate term power purchase agreements with the remaining output to be sold into the PJM merchant market or opportunistically sold under additional long-term contracts.
In addition, Longview will be funding an ongoing program to assist in the reforestation of West Virginia strip mining lands and assist in the treatment of waters through a foundation to be established with the Sierra Club and Trout Unlimited once the plant goes into commercial operation.