On December 19, 2023, Fengate Asset Management (Fengate) announced its acquisition of Morris Cogeneration, LLC, a 177-megawatt combined heat and power facility located in Morris, Illinois, from Atlantic Power and Utilities. The transaction value was not disclosed.

Fengate secured ownership through its strategic operating partnership with Ironclad Energy, established in 2022 to acquire and manage cogeneration, district energy, and industrial generation projects in the U.S. and Canada.

The Morris Cogeneration facility, operational since 1998, utilizes General Electric (GE) technology, including three combustion turbines and a steam turbine. It produces power and steam for the LyondellBasell Morris Plant petrochemical facility.

Greg Calhoun, Managing Director of Infrastructure Investments at Fengate, stated that this acquisition aligns with Fengate’s sustainability and ‘optimize to core’ strategy. The strategy focuses on acquiring and optimizing operational assets to enhance efficiency, reliability, and returns.

Calhoun emphasized that the facility provides a low carbon-intensive energy solution for an industrial sector that is difficult to decarbonize while meeting high reliability standards. Fengate expressed satisfaction in partnering with an environmentally responsible company like LyondellBasell.

Christopher Fanella, President and CFO of Ironclad, highlighted the collaboration's aim to provide reliable and efficient energy to the industrial host and the PJM market.

Fengate managed this investment on behalf of the Fengate Infrastructure Fund IV and its affiliates, including a fund owned by LiUNA’s Pension Fund of Central and Eastern Canada.