Owners weigh up options for power producer Calpine - report

The owners of US power producer Calpine Corporation are considering strategic alternatives for the business, including taking the company public again, a stake sale or a complete exit, Reuters reported, citing sources in the know.

A potential transaction, which would likely occur in 2024 or early in 2025, would seek a valuation for the Houston, Texas-based firm of about USD 30 billion (EUR 27.9bn), including debt, the insiders have been quoted as saying.

Calpine is owned by US private equity firm Energy Capital Partners, industrial group Access Industries and Canada Pension Plan Investment Board (CPP Investments), which took the business private in a USD-5.6-billion deal in 2018. The trio is said to be holding initial discussions with investment banks about their exit options.

The considerations come amidst high electricity demand in some of the markets serviced by Calpine, such as Texas, spurred by data centres and extreme weather, the report said further.

Calpine specialises in power production from natural gas and geothermal resources, serving customers in 22 states, Canada and Mexico with over 26,700 MW of generation capacity. It has 78 power plants in operation, including an 80-MW battery energy storage system (BESS) in Santa Ana, California. The company also has three BESS projects under construction with a combined capacity of 718 MW.

(USD 1 = EUR 0.932)

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