Gemma Power Systems received a notice to proceed on a $210 million contract to build several plants by 2011.
Under the recently signed engineering, procurement and construction contract, the subsidiary of Rockville, Maryland-based Argan Inc. will design and build eight simple cycle-peaking plants near Palm Springs, Calif.
The contract is with CPV Sentinel, which has a power purchase agreement with Southern California Edison (NYSE: EIX).
The first phase, which includes the construction of five simple cycle-peaking units, is expected to be completed in the summer of 2010. The second phase of the project, the construction of three units, is expected to finish in April 2011.
"This is for periods when there's a higher demand for power within that Southern California area, like periods of high heat," said Arthur Trudel, chief financial officer of Argan Inc. "This is the beginning of the project, so there are limited items to work on until we go into full construction mode, like procuring equipment that's necessary for the plant."
Argan (AMEX:AGX) has another California project under way with Pacific Gas & Electric Co. to build a power plant in Colusa by 2010. |
