Hess Corp. signed an agreement with EIF-NEC, LLC, a unit of private equity funds managed by Energy Investors Funds, to develop the Newark Energy Center, a 655-MW gas-fired electric power plant in Newark, New Jersey at a 23-acre brownfield site currently owned by Hess Corp. adjacent to Hess' Newark petroleum storage terminal. The project's costs will be shared equally by Hess and EIF-NEC over a three-year period.
The Newark Energy Center will provide electricity for northern New Jersey and the regional power grid — enough to power more than 700,000 homes.
According to Hess Corp., the plant will be situated in an electrically congested area of New Jersey where significant transmission constraints exist.
By producing energy from natural gas and using advanced emissions control technology and highly efficient turbines, the Newark Energy Center will operate as one of the cleanest plants of its kind in the U.S.
When completed, the Newark Energy Center will enhance grid reliability and provide critical energy at a time when many older plants are retiring due to environmental restrictions, according to Hess Corp. The project has been in the planning phases for about half a decade.
The Newark Energy Center is currently undergoing an open permitting process and is targeted to be operational in 2015, following an estimated 30-month construction phase. The Newark Energy Center cleared PJM Interconnection's base residual auction for capacity to meet demand in the June 1, 2015 to May 31, 2016 delivery year.