Construction To Commence Imminently; Facility Expected To Begin Operations In 2023
Silver Spring, MD – Competitive Power Ventures (CPV), in partnership with GE Energy Financial Services, Osaka Gas USA, Axium Infrastructure, and Harrison Street, today announced it has reached financial closing on CPV Three Rivers Energy Center (CPV Three Rivers) in Grundy County, Illinois. The project represents over $1.3 billion in private investment, including $875 million of senior credit facilities arranged on a true club basis with broad-based support from a diverse group of 14 international financial institutions and investment from the equity partners.
CPV Three Rivers is a state-of-the-art 1,250-megawatt natural-gas-fueled, combined-cycle electric generation facility that will use GE’s latest highly-efficient HA turbine technology, which enables an unmatched efficiency of greater than 64%, with industry-leading flexibility. The facility will sell its power into the PJM market, enough to meet the demand of up to 1.25 million homes and businesses serving Northern Illinois, including Chicago. Construction, which is led by Kiewit Power Constructors Co., will commence shortly and commercial operation is expected to begin in 2023. CPV Three Rivers is CPV’s largest project to date.
“CPV is pleased to announce the financing of CPV Three Rivers, continuing our string of success in bringing another state-of-the-art electric generating project that will modernize the nation’s electric grid by generating safe, reliable, cost effective and environmentally responsible electric power. This project located in Illinois and will serve the PJM market for years to come,” said CPV CEO Gary Lambert. “While the pandemic posed challenges throughout this process, we are thankful to our partners, lenders and host community for their perseverance and confidence in the success of this project.”
“Achieving financial close for CPV Three Rivers during a global pandemic and with commitments from 14 international lenders is a testament to CPV’s successful track record developing, financing, constructing, and operating safe, reliable, cost-effective and environmentally responsible power generation facilities,” said CPV CFO Paul Buckovich. “We’re grateful for the trust our lenders have placed in us to deliver.”
The plant will feature two combustion turbines, two heat recovery systems and two steam turbines in order to maximize efficiency. The facility will have unmatched operational flexibility which allows it to quickly respond to demand changes introduced with the growing deployment of renewable generation. The unique ability for this state-of-the-art technology to provide highly efficient, low-emitting, reliable power and to support renewables with the unmatched operating flexibility offers an optimal solution for Illinois to meet its carbon reduction goals.
“GE is honored to continue its relationship with Competitive Power Ventures by supplying advanced gas technology for CPV’s third HA-powered facility,” said Scott Strazik, President and CEO of GE’s Gas Power business. “Our relationship with CPV is built on proven results, and we are proud to be able to provide state-of-the-art technology, services and strategic financing to help develop complex projects like Three Rivers, which will provide reliable, affordable, and sustainable electricity to CPV’s customers.”
The project enjoys strong support from residents, business, labor and elected leaders in Grundy County and will yield substantial local and regional benefits, including hundreds of millions of dollars in private infrastructure investment and significant new revenues for local governments and businesses. At peak construction, more than 500 union workers will be onsite. Once operational, the energy center will require a staff of 25 full-time personnel and approximately 75 additional jobs will be created to provide ongoing services to the plant.
“CPV Three Rivers will provide $1 billion in economic development and hundreds of good-paying, union construction jobs to Illinois over the next two years at a time when more than 1 million Illinoisans are unemployed,” said Rep. Larry Walsh, Jr. (D-Joliet). “Energy has always been the backbone of Grundy County, and I support the expansion of all resource types to ensure grid reliability, bring new tax revenue streams to the state of Illinois and spur job creation that puts Americans back to work.”
“After years of development, I am pleased to officially welcome CPV Three Rivers to Grundy County,” said State Sen. Patrick Joyce (D-Essex). “The project will provide long-term, high-paying jobs while increasing the resiliency, security, and affordability of our power supply. CPV is a true partner for our communities and our labor force.”
CPV Three Rivers has executed a long-term redevelopment agreement that will help support Grundy County’s tax base, services, and economic development. These funds will be used to support local schools, offset reducing revenue streams, and improve infrastructure. Throughout the development process, CPV Three Rivers has been committed to keeping the community well informed through active community outreach, a dedicated project website and an informational open house held at Coal City High School. The company will continue to proactively invest in and support the community through open dialogue and active participation in local events and organizations.
“As a staunch supporter of the CPV Three Rivers project during its development, I could not be happier to see CPV and their partners reach this critical milestone,” said State Senator Sue Rezin (R-Peru). “Not only are they enhancing the region’s energy corridor by constructing a state-of-the-art generation facility in Grundy County, but also becoming an integral part of our community, committed to supporting our first responders and local schools.”
Competitive Power Ventures (CPV) is uniquely positioned to leverage global technology and financial partnerships to help modernize America’s power generation. Together with our investors, partners, host communities and other key stakeholders, we are driven to improve our energy infrastructure by developing and operating power generation facilities using cutting edge, domestically available natural gas and renewable power technologies. Headquartered in Silver Spring, MD, with an office in Braintree, MA, the company has ownership interest in 4.2 GW of clean generation across the United States. The company’s Asset Management division currently manages more than 9,300 MW of fossil and renewable generating facilities in nine states for 12 different owner groups. Our focus on Environmental, Social and Governance (ESG) and sustained track record of success have enabled us to grow into the number one thermal developer and one of North America’s premier energy companies. For more information: www.cpv.com and follow CPV on Twitter and LinkedIn.
“Achieving financial close on the 1,250-MW CPV Three Rivers Energy Center demonstrates GE’s ability to partner with our customers on large, complex and capital-intensive infrastructure projects. CPV is an experienced and valued co-development partner to GE in the U.S. In the past decade, CPV and GE have closed six projects totaling over 4,000-MW utilizing GE technology and raised over $4 billion of capital.” – Susan Flanagan, President & CEO, GE Energy Financial Services
“Once again, we’re proud to partner with CPV and GE Energy Financial Services on a cost-effective and environmentally-responsible power project. The CPV Three Rivers Energy Center will facilitate the electrification of energy end uses with a smaller carbon footprint while providing grid reliability,” said Tetsushi Ikuta, President, Osaka Gas USA.
“Axium is thrilled to participate in the Three Rivers project and, when completed in 2023, to add this valuable asset in Illinois to its well diversified portfolio of infrastructure assets across the North America”, said Thierry Vandal, President of Axium Infrastructure US Inc.
Christopher Merrill, Harrison Street’s Co-Founder, Chairman and Chief Executive Officer, said, “CPV Three Rivers Energy Center is a cutting-edge energy facility that will provide reliable, highly efficient power to our hometown of Chicago. This investment is reflective of Harrison Street’s commitment to supporting mission-critical infrastructure assets and our ability to execute complex transactions amid uncertain environments. We are thrilled to be partnering with CPV, GE Energy Financial Services, Osaka Gas and Axium on this long-term project and bringing our infrastructure investing expertise to the Northern Illinois community.”
“CPV’s Three Rivers Energy Center is an important project that will use state-of-the-art technology to strengthen Illinois’ critical electric generation supply with reliable, cost-effective, and environmentally-responsible low emissions generation,” said Illinois Chamber of Commerce President and CEO Todd Maisch. “Strengthening our mix of generation is a huge boon to Illinois businesses who depend on affordable, reliable electricity to keep their doors open.”
“The construction of CPV Three Rivers is an enormous undertaking and we are proud to partner with industry leaders CPV and Kiewit to build this project for our community,” said Tim Drea, President of the Illinois AFL-CIO. “Working together, our focus will be on the health and safety of the more than 500 union workers who will bring their expertise to build one of the most advanced power generation projects in the country, right here at home.”
“The CPV Three Rivers Energy Center is a win-win for the entire community,” said International Union of Operating Engineers Local 150 President-Business Manager, James M. Sweeney. “In addition to using cutting-edge technology to generate power efficiently, this project will create hundreds of good-paying jobs for local workers. The economic benefit will be felt throughout the region, and we should be united in our support for the Three Rivers Energy Center.”
“Will & Grundy Building Trades Council is proud that the CPV Three Rivers Energy Center will be built by the hands of our talented union tradesmen who are supporting its nearly three-year construction,” said Doc Gregory, President, Will & Grundy Counties Building Trades Council. “After working with CPV over the past four-and-a-half years, it’s great to achieve this milestone and our members are ready, eager and able to take the CPV Three Rivers Energy Center from concept to reality.”
“The CPV Three Rivers Energy Center is a big win for our members and we are excited to put hundreds of skilled union workers to work here in Grundy County,” said Tom White, Executive Director, Three Rivers Construction Alliance. “Our workforce and their wages and benefits will extend beyond the construction site, too, supporting our local businesses and invigorating the local economy with their purchasing power.”
“Grundy County is fortunate to have attracted one of the most esteemed independent power producers in the country to develop, build and operate the CPV Three Rivers Energy Center,” said Nancy E. Norton, CEO and President of the Grundy County Economic Development Council. “The GEDC began working with CPV nearly five years ago and I have seen firsthand how they set themselves apart with their commitment to developing strong community ties and creating public awareness of the significant benefits their facility will bring to the region. Especially during this time of economic uncertainty and unemployment, we are thankful that the CPV Three Rivers Energy Center is one step closer to becoming a reality. I could not be more excited.”
“As the former Chairman of Grundy County’s Board, I met CPV early on in the development process and was impressed with their prowess. The location they uncovered for a new power generation facility is ideal and I’m happy to this have this major infrastructure project in the 75th District that I serve as State Representative. It is essential that we continue to add new, clean, reliable and cost-effective power to support our local and state economy and I fully support the CPV Three Rivers Energy Center,” said Rep. David Welter (R-Morris).
“CPV Three Rivers brings a tremendous boost to the local economy,” said Grundy County Board Chairman, Chris Balkema. “We are very thankful that CPV and their partners are investing in our community for the long-term. As CPV Three Rivers reaches their intended capacity, they will become one of our largest taxpayers and will energize our economy with funds for our schools, first responders and families for many years.”
“We are pleased to have a company like CPV join our community and that they are committed to being a good corporate citizen and supporting our local schools,” said Dr. Kent Bugg, Superintendent, Coal City School District. “I look forward to all we can do together to make a lasting impact on our students, especially in the areas of Science, Technology, Engineering and Math (STEM).”
“CPV Three Rivers has generously shown its support for our community and heritage by sponsoring Cabin Festival for the last five years,” remarked Char McDade, President, Goose Lake Prairie Partners. “We’re happy that they have achieved project financing and welcome them to Grundy County to be a part of our collective future.”