Abengoa has been selected by the U.S. utility, Portland General Electric (PGE), for the development of a 440 MW combined cycle power plant which will supply electricity to half of Portland’s population, in the state of Oregon, United States.
The Spanish company that applies innovative technology solutions for sustainable development in the energy and environment sectors, will be responsible for developing the engineering, design and construction of the combined cycle plant under a turnkey contract (EPC). This combined cycle plant will be capable of producing electricity from natural gas, an energy resource locally available in the United States, to efficiently meet the needs of the nearby towns and increase the country’s energy independence.
The project is valued at 364 million U.S. dollars. The time estimated for the project execution is 36 months, and Abengoa will eventullay not hold any part of the assets. The Spanish company has outsourced to Mitsubishi Power Systems Americas the supply of the power block, which includes the gas turbine, steam turbine and heat recovery boiler.
First natural gas combined cycle power plant in the U.S.
Abengoa has developed similar plants in Latin America and Europe, but the one in Oregon is the first of its kind to be implemented in the United States. Abengoa’s CEO, Manuel Sanchez, explained that the company is “extremely pleased with this new success in the United States, a country which is for us the first in sales contribution, and for the reliance by PGE in Abengoa”. Sanchez believes that the contract is the result of commercial effort conducted by the Engineering and Construction division worldwide. “Thanks to this effort, Abengoa currently has a pipeline in business opportunities over 100,000 M €, 80% of which are contracts like this, that do not require any investment by Abengoa. We are thus progressing towards our goal of generating ‘free cash flow’ at the corporate level in 2015, “he adds.
According to the company, through this contract their leadership position consolidates in the U.S. Market where they are currently developing projects like Solana, the world’s largest solar thermal power plant, located in the Arizona desert, or Hugoton, the first commercial scale plant to produce second generation ethanol from biomass, the most abundant organic material on earth.
Annual growth of 17%
Furthermore, Abengoa creates employment for 4,000 people in the country, including more than 1,200 direct employees, representing an annual growth of 17% over the past two years. The company has offices in Washington DC, St. Louis, Denver, Phoenix and Austin. Furthermore, they are present, through projects development and operations, in a total of 12 states across the country, in addition to the two R & D+i centers located in Denver and St. Louis.