Entergy and Shaw Begin Construction of Ninemile Point Unit 6

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Louisiana utility regulators have given units of Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana) and The Shaw Group Incorporated (NYSE:SHAW) (Baton Rouge, Louisiana) authorization to begin construction of the 550-megawatt (MW) Ninemile Point Power Station Unit 6. The dual-fueled generator, located in Westwego, Louisiana, is valued at $721 million and is expected to begin operating during the first part of 2015.

Shaw is providing engineering, procurement and construction (EPC) services for the project. The EPC contract is valued at about $500 million. Shaw began limited work on the project last June, and a March 21 decision by the Louisiana Public Service Commission gave Shaw the full authorization to begin construction of the plant.

"At Entergy, our employees work hard every day to find new ways to provide customers with safe, clean and reliable electric power," said Bill Mohl, president and chief executive officer of Entergy Louisiana LLC (New Orleans) and Entergy Gulf States Louisiana LLC (New Orleans). "We generate electricity using a variety of fuels, including natural gas and nuclear. It's a successful strategy that's working for our customers, and the Ninemile plant will enhance this effort."

Entergy said that by using a combined-cycle gas turbine generator and modern pollution control equipment, the Ninemile Unit 6 facility will produce annual fuel cost savings of between $26 million to $53 million compared to less-advanced generators. The unit will be among the cleanest natural gas-fired generating plants in the nation. The utility said its generating fleet emits significantly lower amounts of carbon dioxide, nitrogen oxide and sulfur dioxide than the average utility in the country.

"This project is a testament to Shaw's continued execution for our clients," J.M. Bernhard Jr., the chairman, president and chief executive officer of Shaw, said in a statement. "For nearly 40 years, Shaw has worked with Entergy, providing engineering, procurement and construction solutions as well as fleet-wide nuclear maintenance and modification services."

Natural gas power plants generate about 25% of the electricity in the U.S. today, and "we continue to observe increased activity in gas-fired electric generation, as electric utilities and independent power producers look to diversify their assets," Shaw spokeswoman Gentry Brann told Industrial Info Resources. "In addition, in many states, initiatives to reduce carbon dioxide and other greenhouse gas emissions, as well as anticipated demand for additional electric power generation capacity, have stimulated renewed interest in gas-fired power plants."

"We expect gas-fired power plants to continue to be an important component of long-term power generation in the U.S. and internationally," she continued. "We believe our capabilities and expertise position us well to capitalize on opportunities in this area." Shaw has built or performed services for more than 15,000 MW of gas-fired generation.

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