Korea’s DL Energy to expand US power plant business

South Korea’s DL Energy is set to expand its power plant business in the US.

DL Energy, formerly known as Daelim Energy, said on Dec. 17 that it agreed to buy a 25% stake in CPV Fairview Energy Center, based in Jackson Township, Pennsylvania, from Apollo Infrastructure Funds. The value of the deal was speculated at around $100 million, said industry sources.

DL Energy is expected to conclude the deal early next year since the acquisition of a stake of a power plant needs approval from the US Federal Energy Regulatory Commission, according to the company.

CPV Fairview is a natural gas combined cycle power plant (CCPP) with a capacity of 1,055 megawatts (MW) that started commercial operations in December 2019. The power plant is able to supply more than 1 million homes and businesses with electricity.

STABLE PROFITS

The acquisition is predicted to generate stable profits since CPV Fairview is one of the most efficient gas units in the Mid-Atlantic region of the US, meeting energy demands at lower costs, DL Energy said.

“The world’s largest US private power generation market is promising in terms of profitability and stability,” said a DL Energy source. “We will continue to develop business in the US market.”

In 2019, DL Energy made inroads into the US, investing in the Niles CCPP with Indeck Energy Services (Indeck) and Korea Southern Power Co. (KOSPO). The Niles CCPP, which has a nominal capacity of 1,085 MW, is scheduled to begin commercial operations in the first half of 2022.

DL Holdings Co. bought a 35% stake in Australia’s Millmerran Power Station in 2013 and set up DL Energy in a move to develop the power generation business as the group’s new growth engine.

DL Energy has invested in 14 power plants including seven new and renewable energy power stations at home and abroad such as the US, Australia, Pakistan, Jordan and Chile, securing a total capacity of 6.9 GW with 5.3 GW in other countries.

Write to Hyein Lee at hey@hankyung.com
Jongwoo Cheon edited this article.