BP Buys Power Plant for Whiting Refinery
Tuesday, July 01, 2008
BP Alternative Energy on Tuesday announced that it has acquired the Whiting Clean Energy facility, a 525 megawatt (MW) natural-gas fired combined-cycle cogeneration power plant located in Whiting, Ind.
The plant was acquired for $210 million from NiSource Inc., a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution.
The Whiting Clean Energy facility provides an efficient and consistent source of steam for BP's Whiting refinery. The acquisition also offers BP the opportunity to sell lower-carbon power into the local power market.
"BP's purchase of the Whiting Clean Energy facility will enhance the efficiency of our Whiting refinery and serve as a reliable source of energy for the Midwest," said Bob Malone, BP America president and chairman.
BP has received all necessary approvals from regulatory authorities including consents from FERC and the Federal Trade Commission and has taken over the day-to-day operational control of the plant. No staff reductions are expected as a result of the acquisition.
BP purchased Whiting Clean Energy after exercising its right of first refusal with NiSource. The investment is consistent with BP's strategy of owning cogeneration projects that enhance energy efficiency and minimize the company's global emissions.
Source: BP plc
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