DETROIT--(BUSINESS WIRE)--Basalt Infrastructure Partners II LP (“Basalt”) and its consortium partner, DCO Energy (“DCO”), today announced that they have entered into a definitive agreement to acquire Detroit Renewable Energy LLC (“DRE”). The proposed transaction will benefit DRE’s employees, customers and the broader Detroit community. Terms were not disclosed.
Created in 2010, Detroit Renewable Energy is an integrated renewable energy system comprised of Detroit Thermal, Detroit Renewable Power and Hamtramck Energy Services. Together, these companies provide the City of Detroit with safe, reliable and cost-effective solutions for clean energy and waste disposal. Detroit Thermal, the City of Detroit’s underground district energy steam system, has reliably heated some of Detroit’s landmark buildings and businesses for more than 100 years.
“Detroit Renewable Energy has played a key role in Detroit’s renaissance over the past seven years. In partnership with Basalt & DCO, the company will be in an even stronger position to support the City’s growth and success for many years to come,” said Steve White, President of Detroit Renewable Energy. “This will benefit all stakeholders as Basalt & DCO possess the experience, expertise and resources to partner with the community and build upon our strong record of delivering clean, reliable and cost-effective renewable energy to critically-important businesses across the City of Detroit.”
Commenting today for Basalt, Managing Partner, Rob Gregor, said, "The acquisition of DRE continues Basalt’s strategy of investing in high quality, core infrastructure assets in the utility, energy, and transport sectors. For DRE customers and stakeholders, it will be business as usual. We will maintain the company's Detroit headquarters and local management team and, as long-term investors, we are committed to maintaining safe and reliable service and investing in DRE and the communities it serves."
Jeff Neil, who heads the North American unit for Basalt, added, "We are excited by this important acquisition and committed to providing DRE with the capital necessary to maintain and improve its energy infrastructure. We are very pleased to be investing alongside DCO, a company that brings a wealth of expertise in the operation of urban district energy systems.”
“DRE and its customers will benefit from the technical and financial resources associated with being part of a company that is focused on the district energy business” said Frank DiCola, DCO’s CEO. “The acquisition is a positive development for the Detroit employees, customers and the communities served by DRE,” added DiCola. “DRE customers will continue to be served locally by experienced staff at the central plants, but they will gain the financial support and expertise of a large, national company that is focused on providing energy services.”
Bracewell LLP served as Basalt’s primary legal advisor. King & Spalding LLP served as primary legal advisor to DRE in this transaction.
About Basalt Infrastructure Partners II LP
Basalt Infrastructure Partners is an infrastructure equity investment fund with offices in New York and London focusing on investments in utilities, energy and transport infrastructure in the United States, Canada and Europe. Other notable investments by Basalt advised funds include Upper Peninsula Power Company and Texas Microgrid in the United States along with McEwan Power, Wightlink Ferries and Alkane Energy in the United Kingdom. For more information on Basalt, please visit www.basaltinfra.com
About DCO Energy
DCO is a privately owned independent energy development company specializing in the development, engineering, and construction, start up, commissioning, operation, maintenance and management, as well as ownership of district energy facilities, power plants and combined heat, chilling and power production facilities. DCO has extensive experience with district heating and cooling systems. DCO currently owns and operates district energy systems in Atlantic City, NJ, Hartford, CT, Wilmington, DE and Montclair NJ. www.dcoenergy.com
About Detroit Renewable Energy
Currently employing over 300 individuals, DRE converts Detroit’s municipal solid waste into “green” electricity and steam for district energy, provides heat to city buildings, pays local taxes and is a customer for city water and sewer services. Detroit Thermal, a DRE subsidiary, is a Michigan Public Service Commission-regulated utility that distributes steam for heating and cooling through 32 miles of pipe throughout midtown and downtown Detroit to approximately 100 building meter locations. www.detroitrenewable.com
