Shale energy producer BKV Corp. is teaming up to buy a gas-fired power plant built seven years ago in Texas.
BKV has joined with Banpu Power US Corp. to buy the Temple 1 generation plant for $430 million. Temple Generation currently owns the combined cycle gas turbine facility.
Denver-based BKV is clearly moving into a new businesses as independent power producer with the Temple deal. It requires regulatory approval and is expected to close by the end of the year.
“We’re excited about this acquisition, and the strategic steps we are taking to position BKV as a leading integrated energy company with cleaner, greener energy,” said Chris Kalnin, CEO of BKV. “By extending our natural gas business into a power business we are able to deliver to unprecedented grid reliability, while also creating industry leading ESG standards because we can directly certify our emissions footprint at each step in the value chain, from underground molecule to burner tip.”
Banpu is a Thai-based energy company. The acquisition helps move that company into the U.S. market.
Temple Generation has operated the 758-MW power plant ever since it went into operation in 2014. The company went bankrupt but emerged under Chapter 11 reorganization three years ago.
Panda Power Funds was an original developer on the project when construction began in 2012.
The Temple facility operates on a 2×1 block and has “quick start” turbines which can achieve 50-percent power generation within 10 minutes, according to the company’s website. It can reach full baseload in 30 minutes.
BKV noted that Temple continued operating throughout Winter Storm Uri. Some 52 GW of Texas generating capacity was knocked offline during the freezing stretch, resulting in rotating outages and numerous deaths.
Temple houses two Siemens SGT6-5000F gas-fired turbines, a Siemens steam turbine and two Benson heat recovery steam generators.