Siemens to supply turbines for 670-MW St. Joseph project in Indiana

Siemens said Feb. 24 that it will be the technology partner for the St. Joseph Energy Center, which is a 670-MW natural gas-fired combined cycle power plant to be built by Kiewit Power Constructors Co. in St. Joseph County, Indiana.

Siemens will supply F-class power plant technology including two gas turbines, one steam turbine and three generators. The plant is slated for operation in spring 2018. A 25-year long-term service and maintenance agreement was signed for the major components and includes Siemens’ advanced remote monitoring services along with program parts, hardware, scheduled outage services and program management.

Siemens will deliver two SGT6-5000F gas turbines, one SST6-5000 steam turbine, and three generators. The gas turbines and generators will be manufactured at Siemens’ Charlotte Energy Hub, which is the main production facility for Siemens’ 60 Hz power generation. 

“Harnessing cleaner-burning, low-cost natural gas, this highly-efficient power plant represents the future of power generation in the United States,” said John Gibson, Senior Vice President of Sales – North America at Siemens. “We are proud to be the technology partner for the St. Joseph Energy Center, which will feature world-class power equipment – including gas turbines and generators that are produced by Siemens workers at our U.S.-based energy hub in North Carolina.”

“Our engineering and construction expertise combined with Siemens technology will bring the highest level of quality and performance to the St. Joseph Energy Center,” said Rick Dotson, project manager at Kiewit. “We look forward to building the facility, which will help meet the growing demand for clean, reliable power in the area.”

Siemens’ Financial Services (SFS) division is supporting the project’s construction, providing $50 million of the construction/term loan.

“Being a contributor to the project’s financing highlights how Siemens can offer innovative power generation technologies along with the financing to bring such projects to fruition,” Kirk Edelman, CEO Energy Finance at SFS commented.  “SFS is proud to support this project that will provide a more efficient and reliable source of power to the market.”

Siemens deal covers first phase of two-phase project

Incidentally, St. Joseph Energy Center LLC (SJEC) and St. Joseph Phase II LLC (SJEC II) on Feb. 5 asked that the Indiana Utility Regulatory Commission allow split ownership for two phases of a gas-fired power project. SJEC is a subsidiary of investment funds managed by Ares EIF Management LLC (EIF). EIF was originally founded in 1987 as one of the first investment managers dedicated exclusively to the independent power and electric utility industry. SJEC II is also a subsidiary of investment funds managed by EIF.

The St. Joseph Energy Center Project consists of two approximately 700-MW combined cycle gas turbines (CCGT) power blocks, each of which will consist of two gas turbines, two heat recovery steam generators and a steam turbine.

One power block at the project will be interconnected to the Midcontinent Independent System Operator (MISO) system and the other power block will be interconnected to the PJM Interconnection system. The PJM Block will be constructed and operated through SJEC as Phase I of the project. SJEC II was formed to construct and operate the MISO Block as Phase II of the project.

Willard Ladd, a Principal at Development Partners Group LLC, oversees the St. Joseph project and provided supporting testimony. Development Partners was formed in 2008 to develop power plants across the United States. To provide the necessary investment capital required to develop, construct and operate these power plants, Development Partners partnered with Ares EIF Management.

Ladd noted that financing for Phase I was completed in November 2015. Construction of Phase I has begun and is expected to be completed by March 2018, with commercial operations anticipated to begin in June 2018. It is expected that construction of the MISO Power Block will commence in the next 12-18 months.

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.