Case Studies

Case Study: Generation Bridge

Advantaged Origination

4.9 GW portfolio (8 facilities) of low carbon power assets serving large and growing metro demand centers
Bilateral transaction with NRG Energy, Inc. following company’s decision to exit non-core markets in 2021
Assets well-understood and in markets where ArcLight owns existing assets
Acquisition completed in December 2021

Generation Bridge is 4.9 GW portfolio (8 facilities) of low carbon power assets serving large and growing metro demand centers in tightening power markets with strong long-term supply-demand fundamentals. ArcLight acquired the Generation Bridge assets in a bilateral transaction with NRG Energy, Inc. following the company’s decision to exit non-core markets in 2021. The assets were well-understood and in markets where ArcLight owns existing assets. The acquisition completed in December 2021

Value Creation & Transition

Commercial Enhancements

Executed bilateral capacity sales through 2030,resulting in a substantial increase of contracted revenue

Carbon Capture & Sequestration

1.6 million tpa CCUS project at Sunrise facility in CA

Battery Energy Storage

240 MWh / 70 MW BESS projected short listed for 15-year contract at Long Beach in CA

Solar

25 MW solar project under development at Oswego facility in NY

Since acquisition, ArcLight has overseen the
initiation and implementation of a number of value creation initiatives. Of note, the company has executed a host of new long-term bilateral capacity sales, resulting in a substantial increase of contracted revenue. Generation Bridge has also successfully leveraged its asset footprint to advance a number of energy transition developments, including a ~1 million tpa CCUS project at the Sunrise facility in California, a 240 MWh / 70 MW BESS project that has been short-listed for 15-year contract at Long Beach in California, and a 25 MW solar project under development at Oswego facility in New York

Harvesting Cash

In June 2023, completed sale of Sunrise facility to Hull Street for $534 million
Acquisition debt fully repaid at closing together with significant dividend
In August 2023, completed an $865 million portfolio recapitalization

Generation Bridge has successfully capitalized on the critical role its asset play in the markets, and the successful value creation and de-risking activities undertaking since acquisition. In June 2023, Generation Bridge completed sale of the Sunrise facility to Hull Street for $534 million. The company’s acquisition debt was fully repaid at closing, together with significant dividend. In August 2023, Generation Bridge successfully executed an $865 million portfolio recapitalization.

252MW facility at Port of Long Beach

Carbon Capture and Sequestration at Sunrise facility

Case Study: Great River Hydro

Advantaged Origination

589MW portfolio of hydroelectric facilities, constituting the largest hydro system in New England
Acquired from TransCanada in November 2016, requiring a complex carve out
Critical, difficult to replace, zero emission baseload assets
Fourth partnership with veteran hydro operating and leadership team

Value Creation & Transition

Operational Improvements

Shaped production to optimize dispatch

Commercial Enhancements

30-year power purchase agreements resulting in substantial increase of contracted cash flow

Capital Structure Optimization

15-year interest-only investment grade bond

Transition and Scale

Positioned platform for further development, including 350MW+ of solar and battery storage projects

Monetization

Recognized strong market demand for efficient and clean baseload generation
Asset de-risked, next stage of ownership to require time and capital
Sale to strategic buyer, Hydro-Québec, completed in February 2023

Vernon Hydro Facility

Moore Hydro Facility

Case Study: Griffith

Advantaged Origination

570 MW natural gas-fired combined cycle power plant located in Mohave County, Arizona, near the California & Nevada borders
Acquired from Oaktree Capital Management in May 2020, following prior investment by ArcLight Fund VI in the holding company that owned Griffith
Significant ArcLight investment history in Desert Southwest power markets

Value Creation & Transition

Performance Improvements

Implemented changes to operating and
dispatch protocols to serve market with
growing solar penetration

Commercial Enhancements

Executed a substantial PPA amendment and extension

Co-located Renewables

50 MW solar+BESS under development using excess land and grid interconnection

Transition

MW BTM rooftop solar project; EV charging

Harvesting Cash

Following PPA extension in Q1 2023, completed a $350 million recapitalization
Advancing co-located renewables and facility expansion project
Sales process planned early 2024

570MW Griffith facility

Griffith solar installations

Case Study: Midcoast Energy

Advantaged Origination

Large natural gas and NGL system consisting of over 11,900 miles of pipelines and 25 processing plants underpinned by long-term contracts
Acquired from Enbridge, Inc. in August 2018, requiring a complex carve out
Under-managed system with identified value add opportunities, including strategic connectivity to U.S. LNG markets
Partnership with veteran management team

Value Creation & Transition

Performance Improvements

Strategic investments contributed to 75% increase in system throughput in core East Texas system

Commercial Enhancements

Executed contracts to support construction of new pipeline to LNG markets on US Gulf Coast

Platform Simplification

Executed multiple non-core asset divestitures and recapitalizations to unlock value

Transition

Implemented emission management program reducing Scope 1 GHG emissions

Monetization

Break bulk strategy with multiple asset divestures prior to final exit in 2022
Strong strategic interest in contracted gas transmission system connecting low-cost Haynesville supply with US Gulf Coast markets
Sale of East Texas system to private equity backed Momentum Midstream, completed in September 2022

East Texas Gas Transmission

Case Study: Infinigen Renewables

Advantaged Origination

Largest solar and storage operator in Puerto Rico, with contracted expansion options and extensive development pipeline
Puerto Rico identified as attractive jurisdiction due to high power prices, well structured offtake agreements, and ongoing rebuild of grid infrastructure
Operating assets under long-term contract
Acquired from Sonnedix in December 2021 on bilateral transaction basis

Value Creation & Transition

Performance Improvements

Implemented transformer and power electronics upgrades to increase availability, resulting in 15% increase in EBITDA

Commercial Enhancements

Originated new PPAs and successfully secured pipeline of late-stage developments

Battery Storage

Originated five battery developments
totaling over 150 MW / 750 MWh

Sustainability

Operating team identifies as
100% minority and 28% female

Cash Flow & Capital Efficiency

Refinanced the assets with $90 million Term Loan A
Progressing capital raise from Department of Energy Loan Office Program at highly accretive rates to finance new developments
Substantial cost of capital re-rate and potential proceeds for past claims expected when Puerto Rico Electric Power Authority (PREPA) emerges from Chapter 11

Infinigen’s Oriana facility

Inifinigen’s Horizon facility

Case Study: NGPL

Advantaged Origination

One of the largest, most geographically diverse gas pipeline systems in US, with over 9,100 miles of pipeline and 288 bcf of storage capacity
Highly contracted, tariff-based profile with connectivity to diverse & growing supply basins, end-markets, and LNG export facilities
37.5% ownership with equity partners Kinder Morgan and Brookfield
Acquired initial position from Kinder Morgan and Brookfield in February 2021, and follow-on position from Brookfield in June 2023 on a bilateral basis