ECP Sells 2.6 GW of Gas Capacity to Talen Energy for $3.45B

Energy Capital Partners has agreed to sell 2.6 GW of natural gas capacity to Talen Energy for $3.45 billion.

The acquisition includes Ohio’s Waterford Energy Center and Darby Generating Station, as well as the Lawrenceburg Power Plant in Indiana.

This allows Talen to expand significantly in PJM, a region seeing incredible power demand growth. When the acquisition is complete, the company will have approximately doubled its expected annual generation output in under 2 years.

The $3.45 billion price tag includes $2.55 billion in cash and roughly $900 million in Talen stock.

According to Mac McFarland, Talen’s Chief Executive Officer, “This acquisition further diversifies Talen’s generation portfolio by adding both baseload capacity and strong cash flow contribution and enhances our presence in the western PJM market, which has significant data center tailwinds.”