Tetra Tech's Backlog Hits Record Amid Pipeline, Renewables Buildout

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Researched by Industrial Info Resources (Sugar Land, Texas)--What do renewable-energy projects and fossil fuel pipelines have in common? Just ask engineering and consulting firm Tetra Tech Incorporated (NASDAQ:TTEK) (Pasadena, California), which is riding both waves as its list of contracts related to both sides of the energy landscape only gets bigger. Industrial Info is tracking more than $44 billion worth of active and proposed projects across the U.S. and Canada involving Tetra Tech's services.

Click on the image at right for a graph detailing the top 10 parent companies for U.S. and Canadian projects using Tetra Tech's services.

Tetra Tech's backlog jumped 25% for its fiscal third-quarter 2023, which ended July 2, from the same period last year to a record $4.38 billion. This includes $547 million in commercial projects and task orders the company won in during the third quarter, notably orders for renewable energy and environmental restoration programs. Tetra Tech heard some more good news a few days after its fiscal quarter ended, when the Biden administration approved what is, to date, the largest U.S. offshore windfarm to get the green light from the U.S. Department of the Interior's Bureau of Ocean Energy Management (BOEM): the Ocean Wind 1 project off the coast of New Jersey, which is being developed by Orsted (Fredericia, Denmark). Tetra Tech is serving as a permitting consultant on the project, which is designed to generate 816 MW from 54 turbines.

Ocean Wind 1 also could see a second-phase expansion following completion, which could add as much as 1.2 gigawatts (GW) to the facility. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on Phase I and Phase II, and learn more from Industrial Info's July 7, 2023, article - Biden Administration Gives Green Light to New Jersey Offshore Windfarm.

"Our U.S. commercial net revenues were up 22% from last year," said Dan Batrack, the chief executive officer of Tetra Tech, in a recent quarterly earnings-related conference call. "This growth was driven by work supporting renewable energy programs [and] environmental assessments, and continues to be driven by high-performance green buildings work."

Other renewable-energy projects involving Tetra Tech include Nordex S.E.'s (Rostock, Germany) $320 million Union Solar Plant in Byhalia, Ohio, which is expected to generate 325 MW after it finishes construction toward the end of the year. Altogether, Tetra Tech is involved in more than $5.8 billion worth of active and planned solar projects across the U.S. and Canada, and more than $7.8 billion in wind projects. Subscribers can learn more about the Union Solar project in a detailed project report.

Batrack noted Tetra Tech has seen a significant amount of investment coming out of Canada: "The one area that's coming out of Canada that has done particularly strong--and I'm hoping to bring the expertise even more prominently here to the U.S.--is our high-voltage engineering." He pointed to the company's "capability to have well over 500 high-voltage engineers that can work in a very specialized market."

Among Tetra Tech's highest-valued energy projects is the Trans Mountain Pipeline expansion, which will involve building a new pipeline along the existing, 713-mile route from Edmonton, Alberta, to the Westridge Marine Terminal and a Chevron Corporation (NYSE:CVX) (San Ramon, California) refinery in Burnaby, British Columbia. Tetra Tech is providing engineering services for new and expanded pump stations along the pipeline's route, totaling about $600 million of investment.

The pump-station projects are set to be completed toward the end of the year, although recent reports indicate the broader Trans Mountain expansion is running heavily over budget, according to CBC News. In response, Canada's federal government guaranteed up to C$2.2 billion (US$1.62 billion) in fresh loans to the project earlier this month. Subscribers to Industrial Info's GMI Oil & Gas Pipeline Project Database can click here for a list of detailed project reports related to the pump-station projects, and click here for a full list of projects in the Trans Mountain expansion.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and planned projects across the U.S. and Canada involving Tetra Tech's services.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).