FOR IMMEDIATE RELEASE
Mitsui takes 20.6% stake in billion-dollar Astoria 1 project in Queens from GDF Suez; project delivers 575 megawatts of energy to New York’s power grid
NEW YORK, November 1, 2013 – Milbank, Tweed, Hadley & McCloy LLP has represented leading Japanese trading company Mitsui & Co., Ltd. in acquiring a 20.6% investment in a large power generation plant in New York City. The Astoria 1 project is valued at approximately $1 billion.
Located in the borough of Queens, the Astoria 1 project operates a gas-fired station that began operations in 2006. It currently delivers 575 megawatts of power to a subsidiary of Consolidated Edison under a purchase agreement that runs through May 2016, after which it will be able to sell electricity directly into the New York market. Astoria 1 is expected to be a major contributor to New York’s power grid for years to come. In addition to Mitsui and GDF Suez, the project includes several other major investors.
Mitsui and GDF Suez partner on a number of power generation and LNG businesses internationally, including a 680 megawatt renewable generation portfolio developed by GDF Suez in Canada. The Astoria 1 project represents the companies’ first collaboration in the U.S.
“It was very exciting to advise Mitsui on its investment into a well-established gas-fired generation company providing power to the New York market. It was also rewarding to further the collaborative efforts of Mitsui and GDF Suez in North America,” said Milbank partner John Franchini, who led the team advising Mitsui. Partner Daniel Bartfeld, also on the Mitsui team, added “This acquisition highlights the strong interest in desirable assets in the New York market.”
In addition to Mr. Franchini and Mr. Bartfeld, the Mitsui team included partner Daniel Michalchuk, regulatory advisor James Liles and associates Matthew Thiel and Sean O’Neill.
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