Rocky Mountains Region Digs Up $4.7 Billion in Project Kickoffs for Second-Quarter 2016

Researched by Industrial Info Resources (Sugar Land, Texas)--With numerous projects delayed or thrown into question by consistently weak commodity prices, the U.S. Rocky Mountains region is looking at $4.7 billion in construction starts in second-quarter 2016, the lowest quarterly projection in several years, according to Industrial Info's project database. More than 70% of the total can be attributed to just four industries: Power, Metals & Minerals, Alternative Fuels, and Petroleum Refining.

Click on the image at right for a graph detailing planned construction starts for Rocky Mountains projects in second-quarter 2016, by industry.

The Rocky Mountains region includes Arizona, Colorado, Idaho, Montana, New Mexico, Nevada, Utah and Wyoming.

The Power Industry leads all others in the region with $1.79 billion in projects set to begin construction from April through June. The largest is Iberdrola S.A.'s (Bilbao, Spain) $600 million El Cabo Windfarm in Moriarty, New Mexico. The project, which recently entered the planning and scheduling phase, involves installing 149 wind turbine generators of 2 megawatts (MW) each, to be supplied by General Electric (NYSE:GE), Siemens AG (NYSE:SI) or an equivalent, and is set to be completed in third-quarter 2017. For more information, see Industrial Info's project report.

The Metals & Minerals Industry is in a distant second place with $583 million in projected kickoffs, more than half of which is attributed to a project that is still in the permitting phases: Barrick Gold Corporation's (NYSE:ABX) (Toronto, Ontario) $325 million in additions at the Turquoise Ridge Gold Mine near Golconda, Nevada. Barrack hopes to construct a shaft that will reduce haulage distances from a mining area to the surface, cutting costs and doubling gold production to 500,000 ounces per year. For more information, see February 23, 2016, article - Barrick Gold Forecasts Annual Gold Production of at Least 4.5 million Ounces Through 2020, or Industrial Info's project report.

The Alternative Fuels Industry's third-place standing, with a TIV of $474 million, also is largely due to a single project: Fulcrum BioEnergy Incorporated's (Pleasanton, California) $200 million Sierra Biofuels plant in McCarran, Nevada. The company plans to install a pre-treatment, gasification and upgrading system to process 200,000 tons per year of municipal solid waste into 10 million gallons per year of biocrude. Abengoa's (NASDAQ:ABGB) (Seville, Spain) construction arm Abeinsa is performing engineering, procurement and construction (EPC) services. For more information, see Industrial Info's project report.

The Petroleum Refining Industry comes in fourth with $445 million in projects set to begin construction from April through June, the largest of which is HollyFrontier Corporation's (NYSE:HFC) (Dallas, Texas) $150 million expansion of Unit 8 at a refinery in Woods Cross, Utah. The second-phase project involves taking the unit from 29,500 to 45,000 barrels per day (BBL/d) by adding a pre-flash tower while running black wax crude feedstocks. For more information, see Industrial Info's project report.

The remaining six highest-value project kickoffs in the Rocky Mountains region for second-quarter 2016 are:

• $400 million: Disgen Holdings LLC's Marcou Mesa Windfarm & PV Solar Facility in Joseph City, Arizona
  For more information, see Industrial Info's project report.
• $200 million: Apple Incorporated's Data Center in Mesa, Arizona
  For more information, see Industrial Info's project report.
• $177 million: First Solar Incorporated's Playa 2 Solar Station addition in North Las Vegas, Nevada
  For more information, see Industrial Info's project report.
• $140 million: Natural Chem Group LLC's biodiesel and glycerine plant in Clovis, New Mexico
  For more information, see Industrial Info's project report.
• $127 million: American Sands Energy Corporation's Oil Sands Mine & Extraction Plant in Sunnyside, Utah
  For more information, see Industrial Info's project report.
• $118 million: First Solar Incorporated's Playa 1 Solar Station addition in North Las Vegas, Nevada
  For more information, see Industrial Info's project report.

Almost two-thirds of the total TIV--$3.09 billion--is related to 77 projects that currently are in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. The Rocky Mountains region also has 28 projects worth nearly $1.37 billion in the engineering stages, while 107 projects worth about $240 million already have kicked off the first stage of construction.

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/.