South Korean companies join Connecticut power project

A planned natural gas-fired power plant in Connecticut has attracted two South Korean partners, potentially helping push the project over the finish line albeit on a slower timeline than previously planned.

South Korean state-controlled power producer Kowepo and state-run investment firm KDB Infrastructure Asset Management have agreed to jointly invest in the Killingly Energy Center power plant under development in Killingly, Connecticut. The partnership will join with project developer NTE Energy "to co-operate for the successful completion and operation" of the 632MW combined-cycle plant, Kowepo said.

The South Korean firms did not disclose how much they will invest in the development, and St. Augustine, Florida-based NTE declined to comment on their involvement. Kowepo said it will participate in construction management and, as a strategic investor, will assist in operations and management of the plant.

South Korean companies will supply $10mn of equipment for the project, which Kowepo said will provide a welcome economic boost for small contractors amid the Covid-19 pandemic.

Construction will begin in February 2021, Kowepo said. Commercial operations are scheduled to start in October 2023. NTE had sought to break ground as soon as last fall after winning final regulatory approval for the project in June 2019.

NTE awarded an engineering and construction contract for the plant to a unit of Gemma Power Systems earlier this year after overcoming a legal challenge by environmental groups against the regulatory approval. Plans at the time called for starting construction in this year's second quarter and commencing commercial operations in 2022.

By Tony Cox