Invenergy Inks Supply Deal for Three New Natural Gas-Fired Power Plants in Arizona

Invenergy, which calls itself North America’s largest privately held independent power producer and energy infrastructure innovator, said it has an agreement with a pipeline operator regarding infrastructure associated with development of as many as three new natural gas-fired power plants in Arizona.

The deal announced February 20 between Invenergy and a subsidiary of Tallgrass, a Colorado-based multi-commodity infrastructure group that operates more than 10,000 miles of pipelines, supports Invenergy’s plans to develop the power stations in Maricopa and Yuma counties. Tallgrass will provide the natural gas infrastructure needed to supply the new power plants. Names and locations of the plants were not disclosed.

“For 25 years—including 10 in Arizona—Invenergy has partnered with communities to deliver a mix of energy solutions and shared value for the local economy,” said Daniel Runyan, Invenergy’s senior vice president for Development. “As electricity demand grows, it’s even more clear that natural gas is critical to keeping energy affordable and reliable, and our agreement with Tallgrass to procure long-term gas supply is proof of our commitment to Arizona, our customers, and the local communities we support.”

Invenergy on Friday said electricity demand in Arizona is expected to increase by more than 40% from current levels over the next five years due to population growth, new manufacturing, electrification, and artificial intelligence (AI) and data centers. The company said Arizona currently faces supply constraints around natural gas due to limited interstate pipeline capacity.

“Our country’s natural gas and renewable energy resources are the key to achieving the dual goals of lowering energy prices for consumers and securing our national advantage in the global AI race,” said Adam Schiche, vice president for Business Development at Tallgrass. “We’re proud to team up with Invenergy to deliver the energy needed to fuel the critical infrastructure powering the next generation of technology.”

“Energy resiliency and redundancy is the foundation of an advanced economy. This historical partnership of leaders within the energy sector sends a message to the world that the greater Yuma region is now a destination market for companies demanding utility scale power for production,” said Greg LaVann, president and CEO with The Greater Yuma Economic Development Corp. “The region’s pro-business environment and abundant utility resources [water, fiber, and electricity] will be strengthened by this critical infrastructure investment.”

Jonathan Lines, vice chairman of the Yuma County Board of Supervisors, said, “Yuma County is experiencing continued growth that is placing increased demands on energy and infrastructure systems. As the region evolves, investments that improve energy reliability and address supply constraints can help support economic growth and meet the needs of a growing community.”

Invenergy, headquartered in Chicago, Illinois, and its affiliates have developed more than 220 projects totaling more than 36 GW of generation capacity. The company operates more than 20 gigawatts of large-scale power infrastructure projects across four continents.

—Darrell Proctor is a senior editor for POWER.