- Category: US
23 Jul 2012
- Published on Monday, 23 July 2012 12:03
- Hits (1901)
American energy companies NRG Energy, Inc. and GenOn Energy, Inc. are merging to create the largest competitive generator in the United States.
The merger will give both companies around 47,000 megawatts in asset concentrations in the East, Gulf Coast and West and a combined enterprise value of $18 billion.
According to a Reuters report, NRG is buying GenOn for $1.7 billion in stock in a deal that will allow the companies to save around $300 million annually beginning in 2014.
“This combination ushers in a new era of scale, scope, and market and fuel diversification in the competitive power industry,” said NRG president and chief executive David Crane, who will continue his present positions with the combined company.
The combined fleet of energy resources, which will include solar and wind as well as fossil fuel and nuclear, will generate more than 104 terawatt-hours of electricity annually, or enough to power 40 million homes.
The combined company will also work on reducing emissions from both company’s existing conventional fleets, building on combined investments of over $3 billion since 2000.
Currently NRG has achieved sulfur oxide reductions of 56 percent and nitrogen oxide reductions of 64 percent below 2000 levels. GenOn has reduced sulfur dioxide emissions by 90 percent and nitrogen oxide emissions by 78 percent below 1990 levels.
The combined company will also continue to grow NRG’s portfolio of solar generating facilities, its eVgo electric vehicle charging network, and its other clean energy products and services, says NRG.