Electricity Generating Public Company Limited or EGCO Group (SET: EGCO) announced the sale of its entire 49% ownership interests in RISEC Holdings, LLC (RISEC), the parent company to an entity that holds a 609 MW natural gas fired combined-cycle power plant located in the state of Rhode Island, USA, to Shell Energy North America (US), L.P. (SENA). Aligning with EGCO Group’s asset management and portfolio optimization plans, the proceeds from the transaction will be used for new investments to support its continued long-term growth.
Dr. Jiraporn Sirikum, President of EGCO Group, said that EGCO RISEC II, LLC, a wholly owned subsidiary of EGCO Group in the USA, entered into a purchase and sale agreement with SENA and Cogentrix RISEC CPOCP Holdings, LLC and Cogentrix RISEC CPP II Holdings, LLC, subsidiaries of the Carlyle Group (collectively referred to as Carlyle) on October 18, 2024. The agreement provides for a divestment transaction in which EGCO RISEC II, LLC will divest its 49% ownership interest in RISEC to SENA and Carlyle will simultaneously divest its 51% ownership interest in RISEC to SENA. Upon completion, SENA will own 100% of RISEC and both EGCO and Carlyle will be fully exited from RISEC. The transaction is expected to close in the 1st quarter of 2025 subject to obtaining relevant regulatory approvals.
“The decision to sell shareholding in the RISEC power plant is part of EGCO Group’s strategy to continually optimize its asset and portfolio management. We continue to focus on increasing new power generation capacity in both domestically and internationally, including from both gas-fired and renewable energy projects that are high-value assets in support of the energy transition. The proceeds from the divestment will also allow EGCO Group for new investments in the USA to support its long-term and sustainable growth”, added Dr. Jiraporn.
EGCO Group made its investment in the RISEC power plant in early 2023. The facility generates electricity in the New England power market (ISO-NE) with 100% of its capacity and black start ancillary services contracted to ISO-NE. Additionally, the facility’s entire energy output and other ancillary services are fully contracted to SENA through an Energy Supply Agreement.
