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Released July 31, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Low natural gas prices aren't just having a detrimental effect on the coal-fired power industry; merchant power companies across the U.S., which sell electricity in a competitive, wholesale power market, have struggled to maintain healthy bottom lines. Executives at one of the most prominent, Calpine Corporation (NYSE:CPN) (Houston, Texas), acknowledged in an earnings-related conference call for second-quarter 2017 that the company is exploring options for a sale. Industrial Info is tracking $3.43 billion in active projects involving Calpine.
Calpine reported a net loss of $216 million for the quarter, compared with a loss of $29 million in second-quarter 2016. Just last year, Calpine chalked up two major acquisitions: Noble Americas Energy Solutions LLC, then the nation's largest independent supplier of power to commercial and industrial retail customers, and North American Power and Gas LLC. But the company also has faced higher operating expenses and income taxes, and had to close its aging Clear Lake Cogeneration facility in Pasadena, Texas, earlier this year due to outdated technology and increasing maintenance costs. For more information, see February 27, 2017, article - Calpine Powers Down Texas Cogeneration Facility.
Earlier this week, Bloomberg reported that private-equity firm Energy Capital Partners (Short Hilly, New Jersey) is in "advanced talks" to buy Calpine, although Calpine executives did not confirm this. No final agreement has been reached, but Bloomberg quoted anonymous sources as saying that a deal could be announced as early as next week.
The bulk of Calpine's active projects are natural gas-fired, combined-cycle generation facilities, and the largest under construction is the $760 million addition to the York Energy Center in Delta, Pennsylvania. The new unit is expected to generate 760 megawatts (MW) from a pair of combustion turbines, with duct-fired, heat-recovery steam generators, and a steam turbine, all from General Electric (NYSE:GE). Earlier this year, Calpine executives acknowledged that the commercial operation date was pushed back into early 2018 as EPC contractor Chicago Bridge & Iron Company (NYSE:CBI) (Gravenhage, Netherlands) "struggled," but construction is moving forward regardless. For more information, see Industrial Info's project report.
Executives noted in the call that the existing Delta plant suffered major damage to its steam turbine generator at the end of January, but has been operating in simple-cycle mode since early June and is expected to return to full combined-cycle mode by November.
Many of Calpine's other major projects, however, have faced repeated delays and remain in the planning stages. The $450 million Pioneer Valley Energy Center in Westfield, Massachusetts, an NGCC facility that would generate 431 MW from a pair of combustion turbines and a steam turbine provided by Mitsubishi, has seen its kickoff date delayed more than eight years since its initial proposal; the $400 million expansion of the Garrison Energy Center in Dover, Delaware, which would add 309 MW to the NGCC plant, has seen its kickoff date delayed nearly six years. Another expansion, the $300 million to the Deepwater Power Station in Pennsville, New Jersey, would add 350 MW, but has been pushed back about four years. For more information, see Industrial Info's project reports on the Pioneer Valley, Garrison and Deepwater stations.
In addition to its NGCC projects, Calpine has proposed the $200 million Bluestone Windfarm in Windsor, New York. The 125-MW facility, which is in its conceptual stages and would not begin construction until fourth-quarter 2018 at the earliest, would comprise up to 40 turbines, each with a capacity of 3 MW. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Calpine reported a net loss of $216 million for the quarter, compared with a loss of $29 million in second-quarter 2016. Just last year, Calpine chalked up two major acquisitions: Noble Americas Energy Solutions LLC, then the nation's largest independent supplier of power to commercial and industrial retail customers, and North American Power and Gas LLC. But the company also has faced higher operating expenses and income taxes, and had to close its aging Clear Lake Cogeneration facility in Pasadena, Texas, earlier this year due to outdated technology and increasing maintenance costs. For more information, see February 27, 2017, article - Calpine Powers Down Texas Cogeneration Facility.
Earlier this week, Bloomberg reported that private-equity firm Energy Capital Partners (Short Hilly, New Jersey) is in "advanced talks" to buy Calpine, although Calpine executives did not confirm this. No final agreement has been reached, but Bloomberg quoted anonymous sources as saying that a deal could be announced as early as next week.
The bulk of Calpine's active projects are natural gas-fired, combined-cycle generation facilities, and the largest under construction is the $760 million addition to the York Energy Center in Delta, Pennsylvania. The new unit is expected to generate 760 megawatts (MW) from a pair of combustion turbines, with duct-fired, heat-recovery steam generators, and a steam turbine, all from General Electric (NYSE:GE). Earlier this year, Calpine executives acknowledged that the commercial operation date was pushed back into early 2018 as EPC contractor Chicago Bridge & Iron Company (NYSE:CBI) (Gravenhage, Netherlands) "struggled," but construction is moving forward regardless. For more information, see Industrial Info's project report.
Executives noted in the call that the existing Delta plant suffered major damage to its steam turbine generator at the end of January, but has been operating in simple-cycle mode since early June and is expected to return to full combined-cycle mode by November.
Many of Calpine's other major projects, however, have faced repeated delays and remain in the planning stages. The $450 million Pioneer Valley Energy Center in Westfield, Massachusetts, an NGCC facility that would generate 431 MW from a pair of combustion turbines and a steam turbine provided by Mitsubishi, has seen its kickoff date delayed more than eight years since its initial proposal; the $400 million expansion of the Garrison Energy Center in Dover, Delaware, which would add 309 MW to the NGCC plant, has seen its kickoff date delayed nearly six years. Another expansion, the $300 million to the Deepwater Power Station in Pennsville, New Jersey, would add 350 MW, but has been pushed back about four years. For more information, see Industrial Info's project reports on the Pioneer Valley, Garrison and Deepwater stations.
In addition to its NGCC projects, Calpine has proposed the $200 million Bluestone Windfarm in Windsor, New York. The 125-MW facility, which is in its conceptual stages and would not begin construction until fourth-quarter 2018 at the earliest, would comprise up to 40 turbines, each with a capacity of 3 MW. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
