Fisterra Energy, a company majority owned by energy-focused private equity fund Blackstone Energy Partners, and global private equity fund, Blackstone Capital Partners, announced it has achieved a financial closing for the Tierra Mojada project, a US$ 600 million combined-cycle gas turbine (CCGT) power plant in Guadalajara, Mexico.
The state-of-the-art, 875-megawatt (MW) combined-cycle natural gas-fired power plant will utilize GE’s highly efficient H-Class turbines. The facility is expected to finalize construction by December 31, 2019.
The majority of Tierra Mojada’s capacity will be sold into the new wholesale electricity market created by Mexico’s energy reform under a long-term, 20-year Power Purchase Agreement (PPA) with Comisión Federal de Electricidad.
“This initiative would not be possible without the support of the Mexican government and CFE’s forward-thinking approach to Mexico’s power markets. The competitive wholesale power market in Mexico has incentivized new and efficient power generation, which ultimately reduces the price of power for consumers,” said Sean Klimczak, Senior Managing Director at Blackstone.
“This is an important milestone in the development of the Mexican power market and we are delighted to be a part of this growth. Tierra Mojada will deliver lower priced and more reliable power to the residents and businesses in the region,” said Pedro Barriuso, Fisterra’s Chairman and CEO. Bilal Khan, Managing Director at Blackstone, added that “Guadalajara was a natural location for this project given that it is Mexico’s fourth largest metropolitan area with robust annual demand growth.”
Tierra Mojada is financed with approximately US$ 600 million of construction facilities and letters of credit provided by six banks: Société Générale, Calyon, Natixis, Sumitomo Mitsui, Mizuho, and Intesa São Paolo.
Tierra Mojada marks Blackstone and Fisterra Energy’s third energy infrastructure project in Mexico. In 2014, Blackstone and Fisterra reached a financial close for Ventika, Mexico’s largest onshore wind farm upon completion and one of the largest wind farms in Latin America.
In 2016, Blackstone and Fisterra began exporting power generation from Texas to Mexico from its Frontera facility, which was the first power plant in history to export power on a dedicated basis from the United States to Mexico.