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Released May 09, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--AES Corporation (NYSE:AES) (Arlington, Virginia) has been backing away from coal-fired energy as it accelerates development of several natural-gas fired, combined-cycle (NGCC) projects and broadens its footprint in the renewables market through a major acquisition. Industrial Info is tracking more than $15.8 billion in active projects involving AES, including NGCC, coal-fired and renewables assets in the U.S. and abroad.
Capital expenditures for the quarter stood at $500 million, down from $650 million in the same period last year. AES continued to reduce its expenditures on coal-fired power plants--which, consistent with long-standing market trends, proved to be a drag on AES. Among the factors detrimental to the quarter's bottom line were impairment expenses from the sale of coal-fired facilities in Kazakhstan and the planned shutdown of two such plants in Ohio from subsidiary Dayton Power & Light (DPL).
Industrial Info is tracking only one non-maintenance project at an AES coal-fired facility in the U.S.: $97 million in water system upgrades at a station in Petersburg, Indiana. The company hopes to reduce environmental threats to nearby waters by upgrading the filtration and intake/discharge systems. For more information, see Industrial Info's project report.
Earlier this year, AES and Alberta Investment Management Corporation (Edmonton, Alberta) agreed to acquire Sustainable Power Group (sPower), the largest independent owner, operator and developer of utility-scale solar power in the U.S., from Fir Tree Partners (New York, New York). sPower is developing the $500 million Beacon Solar Energy Project near California City, California, which comprises three sites that will utilize up to 1.2 million fixed-tilt tracking systems from SunEdison Incorporated (Maryland Heights, Maryland) for a 162-megawatt (MW) output.
sPower also is proposing the $160 million Bayshore Solar Plant in Lancaster County, California, which would comprise three more sites for an output of 60 MW. For more information, see Industrial Info's project reports on the Beacon and Bayshore plants.
"We continue to see the potential for adding 500 megawatts to 1 gigawatt of renewable contracted power annually," said Andrés Gluski, the president and chief executive officer of AES, in a quarterly earnings-related conference call. "Furthermore, we see an opportunity to capitalize on the development skills of the sPower team to tap into the growing market for renewable [power-purchase agreements] for large corporations and incorporating energy storage on their platforms."
NGCC projects continue to be a top priority for AES. In April, the company received final environmental approvals for its $500 million unit repowering at Huntingdon Beach Power Station in Huntingdon Beach, California. AES plans to gradually dismantle its existing generating units at the 644-MW facility and construct a 505-MW power block, which is set to begin this summer. The company also is proposing a 200-MW, $500 million second unit further down the road.
The company is accelerating recovery work at another NGCC project: the $600 million Eagle Valley Energy Center in Martinsville, Indiana, which is expected to be brought online within the next year and generate 656 MW from two combustion turbine generators and a steam turbine. For more information, see Industrial Info's project reports on Phase I and Phase II of Huntingdon Beach, and the Eagle Valley Energy Center.
First-quarter revenues for AES were reported to be $3.49 billion, a 6.76% increase from first-quarter 2016. But the company reported a net loss of $24 million, compared with net income of $126 million in the same period last year.
Partnership Lights Up Central America
Other major developments could be found farther south: Last week, AES and ENGIE (Paris, France) agreed to form a joint venture that will market and sell LNG in Central America, using product from the Costa Norte LNG terminal in Colon, Panama, which is co-owned by AES. The terminal is undergoing a $200 million floating storage and regasification unit (FSRU) addition, which also will supply power to AES' $450 million NGCC station at the same site.
The Costa Norte NGCC station will use three General Electric (NYSE:GE) Frame 6 combustion turbine generators, each with a 75-MW capacity; three AMEC Foster Wheeler (NYSE:AFW) heat-recovery steam generators; and a 156-MW Siemens steam turbine generator, for a total output of 381 MW. The Costa Norte complex also is considering a $450 million second-phase expansion that would double output. For more information, see Industrial Info's project reports on the FSRU addition, and Phase I and Phase II of the NGCC plant.
The joint venture follows last year's decision by AES and ENGIE to jointly market LNG in the Caribbean, from AES' Andres regasification facility in the Dominican Republic. Industrial Info is following a $5 million truck-loading area addition to accommodate shipments of diesel and a $1.2 million stroage tank refurbishment to replace the tank's flooring, both of which are expected to begin construction next year. For more information, see Industrial Info's project reports on the truck-loading addition and tank refurbishments.
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/.
Capital expenditures for the quarter stood at $500 million, down from $650 million in the same period last year. AES continued to reduce its expenditures on coal-fired power plants--which, consistent with long-standing market trends, proved to be a drag on AES. Among the factors detrimental to the quarter's bottom line were impairment expenses from the sale of coal-fired facilities in Kazakhstan and the planned shutdown of two such plants in Ohio from subsidiary Dayton Power & Light (DPL).
Industrial Info is tracking only one non-maintenance project at an AES coal-fired facility in the U.S.: $97 million in water system upgrades at a station in Petersburg, Indiana. The company hopes to reduce environmental threats to nearby waters by upgrading the filtration and intake/discharge systems. For more information, see Industrial Info's project report.
Earlier this year, AES and Alberta Investment Management Corporation (Edmonton, Alberta) agreed to acquire Sustainable Power Group (sPower), the largest independent owner, operator and developer of utility-scale solar power in the U.S., from Fir Tree Partners (New York, New York). sPower is developing the $500 million Beacon Solar Energy Project near California City, California, which comprises three sites that will utilize up to 1.2 million fixed-tilt tracking systems from SunEdison Incorporated (Maryland Heights, Maryland) for a 162-megawatt (MW) output.
sPower also is proposing the $160 million Bayshore Solar Plant in Lancaster County, California, which would comprise three more sites for an output of 60 MW. For more information, see Industrial Info's project reports on the Beacon and Bayshore plants.
"We continue to see the potential for adding 500 megawatts to 1 gigawatt of renewable contracted power annually," said Andrés Gluski, the president and chief executive officer of AES, in a quarterly earnings-related conference call. "Furthermore, we see an opportunity to capitalize on the development skills of the sPower team to tap into the growing market for renewable [power-purchase agreements] for large corporations and incorporating energy storage on their platforms."
NGCC projects continue to be a top priority for AES. In April, the company received final environmental approvals for its $500 million unit repowering at Huntingdon Beach Power Station in Huntingdon Beach, California. AES plans to gradually dismantle its existing generating units at the 644-MW facility and construct a 505-MW power block, which is set to begin this summer. The company also is proposing a 200-MW, $500 million second unit further down the road.
The company is accelerating recovery work at another NGCC project: the $600 million Eagle Valley Energy Center in Martinsville, Indiana, which is expected to be brought online within the next year and generate 656 MW from two combustion turbine generators and a steam turbine. For more information, see Industrial Info's project reports on Phase I and Phase II of Huntingdon Beach, and the Eagle Valley Energy Center.
First-quarter revenues for AES were reported to be $3.49 billion, a 6.76% increase from first-quarter 2016. But the company reported a net loss of $24 million, compared with net income of $126 million in the same period last year.
Partnership Lights Up Central America
Other major developments could be found farther south: Last week, AES and ENGIE (Paris, France) agreed to form a joint venture that will market and sell LNG in Central America, using product from the Costa Norte LNG terminal in Colon, Panama, which is co-owned by AES. The terminal is undergoing a $200 million floating storage and regasification unit (FSRU) addition, which also will supply power to AES' $450 million NGCC station at the same site.
The Costa Norte NGCC station will use three General Electric (NYSE:GE) Frame 6 combustion turbine generators, each with a 75-MW capacity; three AMEC Foster Wheeler (NYSE:AFW) heat-recovery steam generators; and a 156-MW Siemens steam turbine generator, for a total output of 381 MW. The Costa Norte complex also is considering a $450 million second-phase expansion that would double output. For more information, see Industrial Info's project reports on the FSRU addition, and Phase I and Phase II of the NGCC plant.
The joint venture follows last year's decision by AES and ENGIE to jointly market LNG in the Caribbean, from AES' Andres regasification facility in the Dominican Republic. Industrial Info is following a $5 million truck-loading area addition to accommodate shipments of diesel and a $1.2 million stroage tank refurbishment to replace the tank's flooring, both of which are expected to begin construction next year. For more information, see Industrial Info's project reports on the truck-loading addition and tank refurbishments.
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/.
