Apollo Global Management and Capital Power have announced a $3 billion partnership to acquire merchant natural gas assets across the United States, marking one of the largest private-equity-backed energy tie-ups of the year. Affiliates of Apollo will contribute up to $2.25 billion in equity, while Capital Power will invest up to $750 million, taking a 25% to 50% working interest in each acquisition and serving as the operator. As operator, Capital Power will earn management and performance fees. 

For Apollo, the investment extends its footprint in energy infrastructure, aligning with the firm’s strategy of backing flexible, cash-generating assets during the energy transition. For Capital Power—an Edmonton, Alberta–based independent power producer—the partnership accelerates its expansion in the U.S. natural gas market and deepens its presence in dispatchable generation at a time when reliability and grid support are gaining renewed focus. 

Capital Power currently owns and operates a diversified fleet of thermal and renewable generation assets across North America. The company aims to increase U.S. generation capacity by 50%, or roughly 3.5 GW, by 2030, positioning itself to capture the surging electricity demand from AI-driven data centers and digital infrastructure.