Proposed plant sold

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June 30, 2009

Anonymous The Corsicana Daily Sun Tue Jun 30, 2009, 07:34 PM CDT

By Janet Jacobs

Daily Sun

Navarro Energy Center has been sold, along with all the other energy properties formerly owned by Babcock and Brown’s North American energy group. Navarro Energy Center was the second of two power plants proposed to be built in southern Navarro County.

The sale was made to the finance group Riverstone Holdings, which took over the Babcock and Brown properties and formed Pattern Energy Group LP as a new company that “develops, constructs, owns and operates renewable energy and transmission assets across North America and parts of Latin America,” according to a press release from Pattern.

Riverstone, a company that invests in energy projects, is keeping the same Babcock and Brown staff, and is adding $400 million to expand the company’s renewable energy business.

“It is exciting to be well capitalized in this current market, which puts the company in a terrific position to grow,” said Hunter Armistead, executive director of Pattern Energy. “We look forward to continuing to develop premier renewable energy projects.”

Navarro Energy Center is a proposed 690-megawatt power plant that would burn natural gas. On paper, it’s owned by Navarro Generating LLC, but in reality, it was a Babcock and Brown project. Now, it’s a Pattern Energy project

Just because it doesn’t fit into the renewable energy mold doesn’t mean it’s not an important project for the company, said Beth O’Brien, a spokeswoman for Pattern Energy.

“Even with Babcock and Brown our main focus was on wind energy, but we still had the Navarro project,” O’Brien said. “We feel like a gas project complements renewables. (The sale) is not going to change it status among our projects. It’s just as important.”

The company’s impending sale was the subject of some anxiety at a public meeting in May about the proposed plant’s air emissions permit. Since the sale a week ago, press releases have sought to reassure investors that the company’s various projects will remain stable.

Riverstone also owns about $17 billion in six investment funds, including extensive oil and gas exploration and oilfied services, according to the press release.

At least two groups of residents have formed around the local power plant projects, Copps for Clean Air, an opposition group whose stated purpose is to either stop the plants or make them as environmentally friendly as possible; and Navarro First, a group made up largely of business people who support the plants.

If built, the power plant would add about $500 million to the county’s tax base, and employ 20 to 25 people.

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Janet Jacobs may be reached via e-mail at jacobs@corsicanadailysun.com

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