A Boston investment firm has agreed to acquire a portion of the ownership interest in Kleen Energy Systems, which runs a 620 megawatt power plant in Middletown.
Through an affiliate, ArcLight Capital Partners LLC has entered into an agreement to acquire Sojitz Corp.’s indirect ownership interests in Kleen Energy.
Financial terms of the transaction were not disclosed.
Sojitz was one of the four companies that own a majority stake in Kleen Energy.Â
In 2018, Kleen Energy’s owner, Los Angeles-based Ares Management Corp., sold its majority stake in the company to subsidiaries of Chugoku Electric Power Co. Inc.; Kyushu Electric Power Co. Inc.; Osaka Gas Co. Ltd. and Sojitz Corp., according to a May 14, 2018 press release. The terms were not disclosed.
Kleen Energy is a special-purpose company created to own and operate the Middletown plant.
The Kleen Energy plant was completed in July 2011. Construction was delayed by an explosion in 2010 that killed six workers and injured more than 50.Â
Last year, the Connecticut Supreme Court ruled against Kleen Energy victims, putting an end to more than a decade of litigation.
The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals.