MCV Holding Company LLC, the parent company of Midland Cogeneration Venture Limited Partnership (MCV) applied to the Michigan Department of Environmental Quality (MDEQ) for an air permit for the installation of a nominal 640 megawatt (MW) combined-cycle natural-gas-fired power plant to be located at the MCV site in Midland, Michigan. MCV currently owns and operates a 1,630 MW combined-cycle natural-gas-fired plant at its Midland site. If the MDEQ approves the application, construction could begin as early as the end of this year, with commercial operation starting in 2015.
As many as 500 construction jobs could be created during peak construction of this project and 20 permanent jobs could be added once the plant goes into commercial operation. The indirect impact on job creation is expected to be substantial. Estimates for indirect jobs range as high as 800 during construction and 28 permanent positions. Roger Kelley, MCV's President and CEO, said, "This is a very important project for Midland, mid-Michigan and the Midwest, creating needed jobs, stimulating economic development, and solidifying Midland as a key energy center in the region." With Consumers Energy Company and other power generators announcing the closure or mothballing of coal-fired power plants in the Midwest, as well as the permanent cancellation of the proposed 750 MW coal-fired Mid-Michigan Energy Station slated for Midland, Kelley added that, "This project helps to assure the reliability and availability of power to meet existing and future demand for energy by our existing customers, which include Dow Chemical and help Michigan continue on its path of recovery from the recession."
MCV's power plant is one of the largest gas-fired cogeneration projects in the United States. The facility is currently capable of producing approximately 1,630 MW of electricity and up to 1.5 million pounds per hour of process steam for industrial use. MCV has been in commercial operation since 1990 serving The Dow Chemical Company, Consumers Energy Company and Dow Corning Corporation with steam and/or electricity. MCV has a proven track record of operating its facility reliably and safely. MCV's current electrical capacity represents approximately 10% of the power consumption for Michigan's Lower Peninsula and is a critical energy resource that enhances reliability of the electric system within Michigan. According to Kelley, MCV has met its energy commitments to Dow Chemical virtually 100% of the time and over 99.5% of the time to Consumers Energy. "MCV employees have demonstrated their superior operating performance and commitment to safety since 1990 and I have every confidence that we will operate this new plant just as capably," Kelley said.
MCV Holding Company LLC is owned by subsidiaries of EQT Infrastructure Limited (70%) and Fortistar LLC (30%).
EQT is a EUR 1.2 billion-infrastructure fund advised by EQT Partners, a leading global private equity advisory firm founded in 1994 with headquarters in Stockholm, Sweden. EQT Infrastructure is one of a group of private equity funds with the business concept of acquiring, financing and developing high-quality medium-sized companies in Northern and Eastern Europe, North America and Asia. EQT serves as an active owner and works in close cooperation with the management of the companies it acquires, to develop and implement value-enhancing strategies. In total, EQT funds have invested in more than 70 companies.
More information about EQT can be found on www.eqt.se.
Fortistar, headquartered in White Plains, New York has a 25-year history of owning and managing power assets and currently has ownership stakes in over 60 projects in North America, with total generation capacity of 3,000 MW. Fortistar has focused on cogeneration since its inception and has ownership stakes in four such assets with total capacity of over 2,600 MW. Fortistar also has a growing renewable energy business, which currently focuses on the landfill gas and biomass sectors. Fortistar owns and manages one of the largest landfill gas power project portfolios in the United States with a 12% market share of all installed projects in the United States. Fortistar also owns and manages a portfolio of biomass power projects with a total capacity of over 165 MW.
More information about Fortistar can be found on www.fortistar.com.