Fengate Capital buys stake in Australian cogeneration plant

Fengate Capital Management has acquired an ownership stake in Worsley Multi-Fuel Cogeneration (Worsley MFC), a 104 megawatt multi-fuel cogeneration plant that supplies steam and electricity to the Worsley Alumina refinery in Collie, Western Australia. The deal’s value was not disclosed. Worsley MFC is also owned by General Electric Unit (NYSE: GE), GE Energy Financial Services and Whitehelm Capital. Based in Toronto, Fengate is an infrastructure and real estate investment firm.


Fengate acquires cogeneration plant in Australia

TORONTO, April 6, 2016 /CNW/ – Fengate Capital Management (“Fengate”) has reached financial close on an equity investment for an ownership stake in the Western Australia Worsley Multi-fuel Cogeneration plant (“Worsley MFC”) which is also co-owned by General Electric Unit (NYSE: GE), GE Energy Financial Services (“GE EFS”) and funds managed by Whitehelm Capital. Greg Osborne, Managing Director, Head of Asia-Pacific, led the investment out of Sydney, Australia on behalf of Fengate’s investors. Fengate was advised by RFC Ambrian, one of the leading corporate advisory groups in the natural resources sector, throughout the investment process.

Worsley MFC is a 104 MW multi-fuel cogeneration plant that supplies steam and electricity to the Worsley Alumina refinery in Collie, Western Australia under a 25-year Capacity Purchase Agreement (“CPA”). Worsley Alumina is 86% owned and operated by mining major South 32, and is one of the largest and lowest-cost alumina refineries in the world. Worsley MFC was constructed to meet the major expansion requirements of the Worsley Alumina refinery. It is a two unit, multi-fuel cogeneration plant with the primary purpose of base load steam production (550 tph) and co-generation of 104 MW of electricity for the refinery.

“The investment in Worsley MFC provides an opportunity for Fengate to invest in a fully-contracted, stable operating asset, while establishing an important relationship with GE EFS,” Osborne stated, “It provides predictable, long-term cash flows for our investors and solidifies Fengate’s position as a reputable international investor.”

Worsley MFC is the latest addition to Fengate’s portfolio of power projects and the third investment that the firm has made in Australia, further strengthening its international infrastructure business.

About Fengate
Fengate Capital Management Ltd. (“Fengate”) is a real asset investment firm that specializes in customized investment funds with a strategic focus on infrastructure, real estate and private equity. The firm has over $2 billion in assets under management with significant experience in public-private partnerships, independent power projects, operating infrastructure assets and real estate developments. Fengate targets high quality investments across North America, Europe and Australia. Since 2007, the firm has been recognized as one of “Canada’s Best Managed Companies”.

For further information: Canada: Courtney Ihnat, Marketing Manager, courtney.ihnat@fengate.com, t (905) 491-6575; Australia: Andrew Oliveira, Associate, andrew.oliveira@fengate.com, t +61 2 8075 4789

Photo courtesy of Thiess