U.S. shale producer BKV Corp is acquiring the 758-megawatt Temple, Texas, power facility from Temple Generation for $430 million.
The deal comes as Texas tries to encourage new gas-fired power generation to meet record demand. Texas coal-fired plants have closed due to competition from cheaper wind and solar, leaving the state facing shortages during extreme heat and cold events.
“It makes us a value-chain energy player,” said Chris Kalnin, chief executive of BKV Corp, a subsidiary of Thailand’s Banpu.
The company is exploring opportunities adjacent to the power plant for expansion into solar energy, he added.
BKV sells others the natural gas produced in its Pennsylvania and Texas shale fields. But it now will fuel the Temple facility with natural gas from its nearby Barnett shale operation which it acquired last year from Devon Energy.
BKV’s natural gas-focused strategy has taken it from a startup in 2015 to become one of the top 20 U.S. gas companies.
The central Texas plant provides enough power to fuel 750,000 homes.
The Temple plant built in 2014 is equipped with emissions-control technology, which will enable BKV to certify its carbon emissions footprint, a key step in the company’s strategy to capitalize on growing demand for low carbon fuel sources, Kalnin said.