Capital Power Corp. has announced agreements to pursue U.S. natural gas power acquisitions and to supply electricity to a data centre developer in Alberta.

The Edmonton-based power generator said Wednesday it has reached a memorandum of understanding with funds managed by affiliates of New York-based Apollo Global Management. That MOU will see Capital Power and Apollo Funds form a $3-billion US investment partnership to buy merchant natural gas assets across the United States.

Apollo is to commit $2.25 billion US in equity, with Capital Power pitching in the rest and able to choose to take a 25 to 50 per cent interest in each acquisition. Capital Power would also operate the acquired power plants and receive management and performance fees.

Separately, Capital Power said it has entered

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