By Editors of Power Engineering
A number of potential investors have expressed an interest in purchasing the Navajo Generating Station, Peabody Energy announced.
The process of searching for a new owner, headed by Lazard Freres & Co., continues on the transition timeframe outlined by Salt River Project, majority owner and operator of the plant. However, Peabody did not identify the potential buyers.
"We are pleased with the robust response to the plant's ownership transition process to date," said George Bilicic, Lazard Vice Chairman and Global Head of Power, Energy & Infrastructure who is leading the process. "In the next phase, we will continue an intense focus to develop a new ownership structure, working toward a final selection of investors and negotiating definitive agreements by the end of the first quarter of 2018."
The ownership group of the 2,250-MW coal plant voted to close the plant earlier this year based on falling natural gas prices that made the fuel a more viable long-term alternative to coal. The Navajo Nation Council recently approved a new lease for the facility that would allow it to run through 2019, and allow the owners to clear the land afterward.
Peabody Energy, the supplier of the plant’s coal, announced this summer they would seek new owners for the plant and have offered to lower the price of coal delivered to the plant.