Trafigura and Frontier Group acquire Mountain Creek power plant in Texas
Trafigura Group Pte. Ltd., in partnership with Frontier Group of Companies, has acquired the Mountain Creek power plant in Texas from a consortium of financial investors. The transaction’s details remain undisclosed, highlighting a significant strategic move for both companies in the North American energy market.
Located near Dallas, the 808MW steam turbine gas-fired power plant is pivotal in providing a reliable electricity supply during peak demand periods in the Electric Reliability Council of Texas (ERCOT) network. This acquisition not only enhances Trafigura’s gas and power portfolio in the region but also introduces potential avenues for future development on the site’s expansive 1,500 acres, which includes existing grid infrastructure.
Richard Holtum, Global Head of Gas, Power, and Renewables at Trafigura, expressed the strategic importance of the acquisition: “This strategic asset will support our growing gas and power business in the US and will continue to provide a flexible source of energy to the fast-growing Texas market. There is also significant future development potential at the site for projects that contribute to regional energy security and low carbon power solutions, such as solar power, battery energy storage solutions, or additional flexible power production.”
David Franjoine, CEO of Frontier Group of Companies, shared his enthusiasm about the partnership, emphasizing the combined expertise the companies bring to the Mountain Creek facility. This acquisition represents a melding of Trafigura’s global reach in commodities and Frontier’s industrial development capabilities, poised to make a significant impact on the local energy landscape.
The acquisition of the Mountain Creek power plant by Trafigura and Frontier Group underscores a strategic foresight into the evolving energy needs of Texas. Leveraging this asset could catalyze further developments in renewable energy and storage solutions, aligning with broader trends towards sustainability in energy production.