Two power generating companies have merged in an agreement to create a new power company for the US market calling it Onward Energy. The merging entities are wind and solar company Novatus Energy with 1.9 GW of operational assets, and natural gas generator Southwest Generation with 2.3 GW of flexible generation capacity.
The 1.9 GW portfolio of Novatus Energy comprised 1.4 GW of wind projects and 25 solar PV projects representing 543 MW AC capacity.
The merger makes Onward Energy an independent power producer (IPP) with 43 utility scale projects adding up to 4 GW of power generating assets in its portfolio. It will continue to operate under common ownership by institutional investors, stated Onward Energy in a statement released, advised by J.P. Morgan Asset Management.
It stated that the company is 'ideally situated to help customers address the U.S. energy market's transition to lower carbon'.
"With an array of zero-carbon renewable resources and flexible natural gas generation capabilities, the new company will be able to offer a full range of energy solutions to customers seeking reliable ways to reduce their carbon footprint," said CEO of Southwest Generation, now Executive Chairman of Onward Energy, John Foster.
Novatus Energy's CEO Steve Doyon will lead Onward Energy in the same position.
The new entity will continue to provide services to Novatus Energy and Southwest Generation clients under existing power purchase agreements.
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