FTAI Infrastructure is exploring strategic alternatives for its Long Ridge Energy asset, which includes an integrated natural gas power plant and gas production wells in West Virginia, the company said on its third-quarter earnings call.

CEO Ken Nicholson said Long Ridge, a 485 MW combined-cycle facility, is expected to reach its target of USD 160m in annualized EBITDA in the fourth quarter and is generating strong cash flow from gas production that now exceeds the plant’s fuel requirements. FTAI began producing gas in the third quarter and is currently selling excess production into the market.

“With the business reaching our base financial targets, we intend to pursue strategic alternatives, including a potential monetization of the business,” Nicholson said. “It is a great asset and a great market environment to be exploring a sale.”

FTAI acquired the remaining 49.9% stake in the plant from GCM Grosvenor earlier this year.

Nicholson said the company is weighing several behind-the-meter opportunities at the site, including partnerships to develop a co-located data center or lease land for such a facility, given the power plant’s efficiency and access to low-cost energy. “Potential structures we’re considering include partnering with others to develop new data center facilities on our land, or just a direct lease of the land that we own to generate a valuable fixed income stream,” he said.

The Long Ridge Energy complex—located on 1,600 acres along the Ohio River in Hannibal, Ohio—houses one of the most efficient power plants in the US, completed in 2021.

The company is progressing through a PJM interconnection uprate that will add 20 MW of generation capacity, increasing output to roughly 505 MW. Nicholson said the upgrade could add USD 5m to USD 10m in annual EBITDA once implemented.

According to FTAI’s third-quarter presentation, Long Ridge generated USD 35.7m of adjusted EBITDA for the quarter, up from USD 23m in the prior quarter, as the facility operated at a 96% capacity factor. Combined power and gas revenues reached USD 58.6m, compared with USD 41.8m in the second quarter.

Nicholson said FTAI has received strong inbound interest in the Long Ridge asset from multiple buyer groups. He emphasized that while the company could theoretically separate the gas production and power generation businesses, potential buyers view the integrated structure as a differentiator. “Our feedback and the inbounds that we’ve been getting show that the interest has been in the whole site,” he said. “That’s why it’s such a wildly profitable asset.”

Nicholson said proceeds from any potential transaction would be used for deleveraging or reinvestment in other business segments, including its rail and port operations.

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