DALLAS--(BUSINESS WIRE)--Panda Power Funds has completed financing on a 758 megawatt expansion of its natural gas-fueled, combined-cycle power plant currently under construction in Temple, Texas. When completed, the Temple I and II generating stations will have a combined capacity of 1,516 megawatts, or enough power to supply the needs of approximately 1.5 million homes in the Central and North Texas areas.
“Power Deal of the Year – Americas”
The Temple II transaction represents the third financing of a power plant by Panda Power Funds in eight months. The Temple I financing, which occurred in July of 2012, was reported as a breakthrough for the U.S. banking industry and was subsequently awarded the 2012 “Power Deal of the Year – Americas” by ThomsonReuters’ Project Finance International magazine. Panda Power Funds is supplying equity for the Temple II project along with several other institutional co-investors. Goldman Sachs and Credit Suisse arranged the senior debt financing for the plant. Ares Capital was the documentation agent.
“Our team continues to perform as promised,” said Todd W. Carter, president and senior partner of Panda Power Funds. “With more than 2,250 megawatts of capacity under construction in Texas, we have given our investors a first-mover advantage in one of the fastest growing electricity markets in the nation.”
The Panda Temple II project has been strategically sited along the I-35 corridor, approximately midway between San Antonio and Dallas/Fort Worth, 60 miles North of Austin. Spurred by robust economic growth and job creation that has outpaced the national average, the U.S. Census Bureau lists these cities among the ten fastest growing metropolitan areas in the nation. From August of 2011 to July of 2012 alone, 427,000 new residents moved to the Lone Star State. This rapid growth has created a need for new generating capacity. The Temple II facility is scheduled to enter commercial operation by the summer of 2015.
“This is another big boost for our city,” said Lee Peterson, president of the Temple Economic Development Corporation. “The Temple II plant will continue to drive the economic impact already created by the Temple I project. With more construction, come more jobs and more revenues for businesses throughout our area. Temple II will enlarge the tax base even more, which will help the city of Temple provide ongoing services to its residents.”
According to a study conducted by Impact Data Source of Austin, Texas, the construction of a 758 MW combined-cycle project, such as the Temple II facility, will contribute an estimated $1.6 billion to the area’s economy during construction and the plant’s first 10 years of operation. Approximately 700-800 jobs will be created to construct the Temple II plant at peak construction. During operations, the combined generating stations will create 35 skilled jobs to operate the facilities and an estimated 90 indirect jobs within the community to support the plants.
While Temple II is a stand-alone power project, it will share common facilities, laterals, operations and construction synergies with Temple I, creating economic benefits for both projects. Each state-of-the-art plant will also utilize the latest, most advanced combustion turbine and emissions-control technology, making them two of the cleanest, most efficient natural gas-fueled power plants in the United States. Both plants will use recycled effluent for cooling purposes to help conserve the state’s natural supply of drinking water. In addition, the facilities will employ quick-start turbines, which can deliver 50% power output within 10 minutes of startup and 100% power output within 30 minutes, making the plants ideally suited for a state which has more (intermittent) wind energy than any other state in the country. The generating stations will be supplied with natural gas from Texas producers.
Panda Power Funds selected a turn-key consortium of Bechtel and Siemens Energy Inc. to build the Temple II facility. The firms are two of the largest power contractors and technology providers in the world. As a part of the contract, Siemens will provide the power island package including the natural gas turbines, steam turbine, waste heat recovery boilers, and instrument and control systems. Bechtel will be responsible for the engineering and procurement for the balance of the plant, and the installation, construction and commissioning of the facility.
The generating station will be located at Synergy Industrial Park in South Temple.
About Panda Power Funds, LP
Founded in 2010, Panda Power Funds is a private equity firm headquartered in Dallas, Texas, which has the ability to internally source and develop, acquire, invest in, and operate large-scale, natural gas-fueled power generation facilities. The firm has a combined-cycle power plant being built in two phases in Temple, Texas totaling 1,516 megawatts and a 758 megawatt combined-cycle power plant under construction in Sherman, Texas. The company recently built a utility-scale, 20-megawatt solar farm in Pilesgrove, New Jersey — one of the largest solar farms in the northeast United States. Additional information on Panda Power Funds can be found at www.pandafunds.com.
About The Siemens Energy Sector
The Siemens Energy Sector is the world’s leading supplier of a broad spectrum of products, services and solutions for power generation in thermal power plants and using renewables, power transmission in grids and for the extraction, processing and transport of oil and gas. In fiscal 2012 (ended September 30), the Energy Sector had revenues of EUR27.5 billion and received new orders totaling approximately EUR26.9 billion and posted a profit of EUR2.2 billion. On September 30, 2012, the Energy Sector had a work force of almost 86,000. Further information is available at: www.siemens.com/energy.
About Bechtel
Bechtel is among the most respected engineering, project management, and construction companies in the world. We stand apart for our ability to get the job done right—no matter how big, how complex or how remote. Bechtel operates through five global business units that specialize in civil infrastructure; power generation, communications and transmission; mining and metals; oil, gas and chemicals; and government services. Since its founding in 1898, Bechtel has worked on more than 22,000 projects in 140 countries on all seven continents. Today, our 53,000 employees team with customers, partners and suppliers on diverse projects in nearly 50 countries. www.bechtel.com.
