Abengoa says deal to build gas-fired plant for Portland a first for it

Abengoa (MCE: ABG.B) said June 3 that it has been selected by Portland General Electric (NYSE: POR) to develop a 440-MW combined-cycle power plant to supply electrical energy to half the population of Portland, Ore.

The project is valued at $364m. Abengoa will be responsible for the engineering, design and construction of the combined cycle power plant under the engineering, procurement and construction (EPC) “turnkey” system. The estimated time for the project is 36 months. Abengoa noted that it will not maintain any ownership interest in the assets it constructs.

The combined-cycle plant, called the Carty Generating Station and located at the site of PGE’s Boardman power plant, will be capable of producing electricity from natural gas. For this project, Abengoa has subcontracted Mitsubishi Power Systems Americas to supply the power block equipment which involves the gas turbine, the steam turbine and the heat recovery steam generator.

Manuel Sanchez Ortega, CEO of Abengoa, said: “We are very pleased by this new success in the United States, which is the first sale of this kind for us in the U.S., and by PGE’s reliance on Abengoa. This contract is the result of the commercial efforts conducted by Abengoa’s Engineering and Construction division. Thanks to this, Abengoa currently has a portfolio of business opportunities of over €100,000 million, 80% of which are contracts like this one, which do not require investment by Abengoa. We thus progress toward our goal of generating free cash flow at a corporate level in 2015.”

Abengoa pointed out that it has extensive experience in this type of project, having developed similar facilities in Latin America and Europe. This project is the first of its kind to be built in the United States. Abengoa is currently developing numerous projects such as Solana, the world’s largest solar power plant, located in the Arizona desert, and Hugoton, the first full-scale commercial plant producing second-generation ethanol from biomass.

PGE said June 3 that it has worked out an agreement to construct a new 440-MW natural gas-fired power plant near Boardman, Ore., to be called the Carty Generating Station. The projected total cost is $440m to $455m, excluding allowance for funds used during construction. The new plant will use a G-class turbine manufactured by Mitsubishi Power Systems Americas. Abengoa submitted the best-performing bid to meet customers’ need for a baseload resource, using a new bidding option encouraged by the Oregon Public Utility Commission to give independent developers access to sites already controlled by PGE.

Mitsubishi Power Systems Americas (MPSA) said June 4 that the power train for this project includes Mitsubishi’s state-of-the-art M501GAC gas turbine, SRT-50 reheat steam turbine, and heat recovery steam generator. This will be the second power plant in PGE’s fleet to be powered by Mitsubishi’s innovative power train technology.

Mitsubishi’s M501GAC gas turbine is one of the most efficient, large-capacity gas turbines in the world. Mitsubishi said it has received orders for more than 77 units of the G series turbine worldwide, including more than 39 units in North America. The M501GAC gas turbine to be installed at the Carty Generating Station will be manufactured at MPSA’s Savannah Machinery Works, a modern gas turbine manufacturing and service facility located in Savannah, Ga.

Mitsubishi’s SRT-50 steam turbine utilizes an advanced 50-inch last stage blade for improved plant performance. The Carty Generating Station represents Mitsubishi’s fourteenth order for a steam turbine unit with this 50-inch blade design which provides for higher efficiency turbines compared to units with smaller blades.

Under a separate long-term service agreement, MPSA will provide the Carty facility with comprehensive turbine maintenance, repair and outage services, replacement parts supply, and dedicated remote monitoring for its gas turbine.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.