New York, Washington – Global law firm Hogan Lovells Cadwalader has advised Equinor as it acquires an interest in the Lackawanna Energy Center (Lackawanna), a 1,483 MW gas-fired combined cycle power plant (CCGT) in Pennsylvania. It will acquire 87.71% of the Class A shares in the Lackawanna Energy Center for US$940 million, subject to certain purchase price adjustments at closing.
The transaction represents a step forward in building an integrated power business in selected markets. Equinor will seek opportunities to expand its collaboration with Invenergy as the operator of the plant, building on Invenergy’s solid operating capabilities and position in the PJM power market.
The investment structure provides upfront preferred cash flow and visibility on long-term cash generation, supported by investor protection mechanisms. Under this agreement, Equinor will acquire an interest in Lackawanna from funds managed by Global Infrastructure Partners (GIP), a part of BlackRock. Invenergy will continue as the operator, leveraging its established operating platform and strong track record.
“This deal reflects Equinor’s strategic commitment to expanding a resilient generation portfolio in the United States,” said M&A partner Megan Ridley-Kaye. “Our New York and Washington teams partnered closely with Equinor to navigate the regulatory and transactional complexities, helping the company reach a pivotal milestone in its growth strategy.”
The transaction builds on Equinor’s long standing presence in the United States, the company’s largest source of energy production outside Norway, and aligns with its strategy to develop power positions in markets where it can combine industrial capabilities, market access and existing energy assets.
More about the transaction can be found here.
The Hogan Lovells Cadwalader deal team was led by partners Megan Ridley-Kaye (New York) and Peter Cohen-Millstein (New York), senior associate Nicole Banton (Washington, D.C.), and associate Nicole Chan (New York).