Giant investment firm Blackstone to spend $1 billion on a 620-MW natural gas power plant in Pennsylvania
Blackstone Acquires Hill Top Energy Center for $1 Billion
In a significant move, Blackstone's private equity arm has announced the acquisition of the Hill Top Energy Center, a 620-MW natural gas power plant in Western Pennsylvania, for close to $1 billion. The deal is part of Blackstone's ambitious plan to invest over $25 billion in Pennsylvania's digital and energy infrastructure.
The Hill Top Energy Center, one of the newest and most efficient combined cycle gas turbine plants in the country, will support power needs related to data center development and 'other use cases' in the PJM market. The plant's strategic location makes it ideal as a hub to power America's AI future.
Blackstone plans to build and operate new natural gas-based, combined-cycle generation stations in a joint venture with PPL Corp. The details of the company forming this joint venture are not yet disclosed. The new generation stations will have regulated-like risk profiles, shielding them from merchant energy and capacity price volatility.
The purchase price of the Hill Top Energy Center translates to about $1,600 per kilowatt. This investment is expected to catalyse an additional $60 billion into the Commonwealth of Pennsylvania.
Blackstone's energy-focused private equity business, Blackstone Energy Transition Partners, made a similar investment earlier this year when they paid a similar amount for the Potomac Energy Center. The Potomac Energy Center, like the Hill Top, is considered one of the most efficient gas power plants in its region and has the potential to integrate a hydrogen fuel blend in the future.
The surge in natural gas deals and the value of individual gas plants has been evident since 2020. According to data from Enverus, the total value of natural gas plant acquisitions exceeded $4.3 billion in 2024, up from $3.1 billion in 2023.
In May, Vistra reached a deal to pay nearly $2 billion for a portfolio of natural gas facilities totaling 2.6 GW, with 1.3 GW located in Pennsylvania. This trend of increased investment in natural gas plants shows no signs of slowing down.
Despite the significant acquisition, Blackstone has remained tight-lipped about the deal, with no immediate comment provided regarding the latest announcement.
This news was announced at the Pennsylvania Energy and Innovation Summit, further emphasising Blackstone's commitment to the state's energy sector. The company's plans for the Hill Top Energy Center and its new-build power generation capacity are set to shape the future of Pennsylvania's digital and energy infrastructure.
