Castleton Commodities International LLC Acquires Landfill Gas-to-Electricity Business from INGENCO Holdings, LLC
Castleton Commodities International LLC (“CCI”) today announced that it has closed on an acquisition of the landfill gas-to-electricity generation business of INGENCO Holdings, LLC (“INGENCO”). Terms of the all-cash transaction are not being disclosed.
Industrial Power Generating Company (“INGENCO”), owns, designs, develops, constructs, and operates landfill gas-to-electricity and distributed generation facilities. INGENCO currently owns and operates 160 megawatts of capacity across 18 facilities located in the U.S. mid-Atlantic region. In addition to selling energy, capacity, and renewable energy credits to PJM, INGENCO also sells electric power under several long-term off-take contracts.
Landfill gas is a natural byproduct of the decomposition of organic material. According to the U.S. Environmental Protection Agency, landfill gas contains roughly 50 to 55 percent methane, which is a potent greenhouse gas with a global warming potential that is 25 times greater than carbon dioxide. Landfill gas-to-electricity generators, such as INGENCO, convert landfill gas into electricity, resulting in environmental benefits by reducing the release of methane into the atmosphere.
CCI acquired INGENCO in 2015. For more information please visit the INGENCO website.
The acquisition represents CCI’s first power generation investment in the renewable energy space and expands CCI’s power generation footprint into PJM. The transaction brings CCI’s total power generation portfolio to approximately 1,600 megawatts of generation capacity with market sales in NYISO, ERCOT, and PJM.
“We are pleased to add the landfill gas-to-electricity business of INGENCO to our portfolio,” said Steve Culliton, Senior Vice President and Head of North American Power at CCI. “The investment provides us with assets situated in the PJM market as well as renewable energy-specific attributes. We continue to look to expand our power generation portfolio and seek additional investment opportunities both in the conventional and renewable energy space.”
Steptoe & Johnson LLP served as legal counsel to CCI in the transaction.
About Castleton Commodities International LLC
CCI is a global commodities merchant with an integrated set of operations consisting of physical and financial commodities trading and the ownership, operation, and development of commodities-related upstream and infrastructure assets. The Company markets a broad range of physical commodities including natural gas, natural gas liquids, refined products, crude oil, fuel oil, freight, petrochemicals, electric power and coal and financial instruments related to commodities. CCI is headquartered in Stamford, CT with offices in Houston, Texas; Calgary, Canada; Geneva, Switzerland; London, United Kingdom; Shanghai, China; Singapore; and Montevideo, Uruguay.
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May 27, 2015