Five dead in private equity power plant disaster

Between 50 and 200 subcontractors were reportedly on-site at the time of the explosion. The cause of the disaster is undetermined at present, but early media reports speculate that a natural gas leak or a gas purging is responsible for the blast. Local authorities have ruled out the possibility of terrorism.

As of yesterday, Middletown Mayor Sebastian Giuliano stated that recovery efforts had been hindered by unsafe conditions on the ground, with sections of the site requiring stabilisation before recovery efforts can resume. The blast may also have caused structural damage to other residential and business premises in the surrounding area.

Kleen Energy Systems, which had reportedly been approaching the final stages of construction when the blast went off, is a 620MW combined cycle natural gas-fired power plant. EIF had raised $1.35bn construction financing for the plant in June 2008, which went on to win the North American Single Asset Power Deal of the Year from EuroMoney. Before the accident, the plant was on course to become one of the region’s largest electricity producers.

The US Chemical Safety Board, which is responsible for investigating industrial accidents, has sent seven officials to investigate, according to Reuters.

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