AES Corporation's $15.4 Billion in Active Projects Prioritize Natural Gas-Fired, LNG Facilities

Researched by Industrial Info Resources (Sugar Land, Texas)--Hurricanes in the Caribbean are among the recent setbacks facing AES Corporation (NYSE:AES) (Arlington, Virginia), which is building up its natural gas-fired and liquefied natural gas (LNG) assets in Central and South America. Nonetheless, the company has made significant progress recently on its capital-growth projects and the integration of its renewable acquisitions. Industrial Info is tracking more than $15.4 billion in active projects involving AES, including more than $4 billion that are under construction.

Over the summer, AES began construction on two repowering projects at natural gas-fired, combined-cycle (NGCC) plants in southern California: the $500 million Huntington Beach project and $963 million Alamitos project in Long Beach. The 644-megawatt (MW) Huntington Beach plant, approved in April, will use 50% less fuel than the plant it is replacing; the 642-MW Alamitos plant will eliminate the use of ocean water for cooling and use 70% less fresh water, according to the company. For more information, see Industrial Info's reports on the Huntington Beach and Alamitos projects.

AES also is seeing strong demand for natural gas-fired generation abroad. In Central America, it is at work on the Costa Norte LNG terminal and power project in Colon, Panama, at the entrance of the Panama Canal, which will include a $450 million NGCC plant, which will be supplied via a $200 million floating storage and regasification unit. The facility is expected to introduce natural gas to Panama, a country that traditionally has depended on energy imports, according to Petroleum Economist. LNG prices tend to be less volatile than those for oil. For more information, see Industrial Info's project reports on the NGCC plant and terminal.

Earlier this year, AES announced it would close two coal-fired power stations in Ohio by mid-2018: the Killen Power Station and the J.M. Stuart Generating Station. AES also is looking to sell off its coal-fired Masinloc power plant in the Philippines, which is undergoing a $450 million unit addition that will add 300 MW to the facility, bringing its total generation of 900 MW. AES is under contract to finish the unit, which will be sold with the rest of the complex. For more information, see Industrial Info's project report.

"By the end of 2020, our coal generation will decline from 41% to 33% [of our total generation], while renewables and gas generation will increase from 55% to 63%," said Andres Gluski, the chief executive officer of AES, in a recent quarterly earnings-related conference call. "We've also been driving the adoption of energy storage in our markets."

In South America, AES is at work on several hydropower projects through its subsidiaries. AES Gener, through its own subsidiary Alto Maipo SpA, is building two such plants in close proximity: the $450 million Alfalfal II and the $450 million Las Lajas hydropower stations in Limache, Chile. Each project will construct intakes to divert water to a pair of Pelton turbines from Voith, to generate 264 MW and 267 MW, respectively. For more information, see Industrial Info's project reports on the Alfalfal II and Las Lajas stations.

Also in South America, subsidiary AES Tiete S.A. is at work on a years-long, $62.3 million upgrade of the Agua Vermelha hydropower station in Ouroeste, Brazil. In addition to turbine upgrades, the project will modernize the water-intake components and upgrade the control and protection systems at the 1,393-MW facility.

In September, Tiete finalized its acquisition of a 75-MW solar project and signed an agreement to acquire another 150-MW solar project. Next year, the subsidiary expects to begin construction on the $91.6 Agua Vermelha II solar-power station in Ouroeste, which will generate 75 MW from about 312,000 photovoltaic panels. For more information, see Industrial Info's project reports on the hydropower station and solar-power station.

Total revenues in third-quarter 2017 were reported to be $1.79 billion, down less than 1% from the same period last year; net income stood at $152 million, a 13.1% decrease. Capital expenditures stood at $464 million, down from $515 million in the same period in 2016.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.