The Global Strategic Investment Alliance (GSIA) has acquired a one-third stake in Midland Cogeneration Venture (MVC) from OMERS’ Borealis Infrastructure division, representing the consortium’s first investment.
MCV (pictured) is one of the largest gas-fired cogeneration plants in the US, with the capability of producing up to 1633 MW of electricity and up to 1.5m pounds per hour of process steam for industrial use.
MCV is recognized as a critical energy resource that enhances system reliability within the state of Michigan. Further, its electrical capacity meets approximately 10% of the power consumption for Michigan’s Lower Peninsula.
The cogen plant was acquired by Borealis Infrastructure, which invests in and manages infrastructure assets on behalf of OMERS, in December 2012.
Borealis Infrastructure will continue to manage MCV on behalf of all GSIA investors, with OMERS continuing to own the remaining two-thirds interest in the asset.
“We’re very pleased to have completed our first transaction with our GSIA partners, and look forward to announcing our next acquisition in the near future,” said Jacques Demers, president and CEO of OMERS Strategic Investments.
The GSIA currently includes OMERS, one of Canada’s largest pension plans, Japan’s Pension Fund Association and a consortium led by Mitsubishi Corporation, and has a total committed capital to date of US$7.5bn.