Argan, Inc.’s Gemma Power Systems Executes EPC Contract for a 1.2 GW Power Project in Texas
Argan's (NYSE: AGX) subsidiary Gemma Power Systems has secured an EPC contract with Sandow Lakes Energy Company for a 1.2 GW natural gas-fired power plant in Lee County, Texas. The facility will supply power to 800,000 homes within the ERCOT grid. Construction is set to begin in summer 2024, with completion expected in 2028.
The combined cycle power station will feature two Siemens Energy SGT6-9000HL gas turbines, known for high power output and excellent fuel efficiency. The turbines are designed to operate on hydrogen with minor modifications, supporting both reliable power generation and decarbonization goals.
La sussidiaria di Argan (NYSE: AGX), Gemma Power Systems, ha ottenuto un contratto EPC con la Sandow Lakes Energy Company per una centrale elettrica a gas naturale da 1,2 GW nella contea di Lee, Texas. L'impianto fornirà energia a 800.000 abitazioni all'interno della rete ERCOT. La costruzione inizierà nell'estate del 2024, con completamento previsto per il 2028.
La centrale a ciclo combinato presenterà due turbine a gas Siemens Energy SGT6-9000HL, note per l'elevata produzione di energia e l'eccellente efficienza energetica. Le turbine sono progettate per funzionare a idrogeno con minime modifiche, sostenendo sia una generazione di energia affidabile che gli obiettivi di decarbonizzazione.
La filial de Argan (NYSE: AGX), Gemma Power Systems, ha asegurado un contrato EPC con la Sandow Lakes Energy Company para una planta de energía de gas natural de 1,2 GW en el Condado de Lee, Texas. La instalación suministrará energía a 800,000 hogares dentro de la red ERCOT. La construcción está programada para comenzar en el verano de 2024, con finalización prevista para 2028.
La central eléctrica de ciclo combinado contará con dos turbinas de gas Siemens Energy SGT6-9000HL, conocidas por su alta producción energética y excelente eficiencia de combustible. Las turbinas están diseñadas para operar con hidrógeno con modificaciones menores, apoyando tanto la generación de energía confiable como los objetivos de descarbonización.
아르간(뉴욕 증권 거래소: AGX)의 자회사인 젬마 파워 시스템이 샌도우 레이크 에너지 회사와 텍사스 리 카운티에 있는 1.2 GW 천연가스 화력 발전소에 대한 EPC 계약을 체결했습니다. 이 시설은 ERCOT 그리드 내 80만 가구에 전력을 공급할 예정입니다. 건설은 2024년 여름에 시작될 예정이며, 2028년 완공이 예상됩니다.
이 복합 사이클 발전소는 높은 발전 용량과 뛰어난 연료 효율성으로 알려진 두 개의 지멘스 에너지 SGT6-9000HL 가스 터빈을 특징으로 합니다. 이 터빈들은 소규모 수정으로 수소에서 작동하도록 설계되어, 신뢰할 수 있는 전력 생산과 탈탄소화 목표 모두를 지원합니다.
La filiale d'Argan (NYSE: AGX), Gemma Power Systems, a remporté un contrat EPC avec la Sandow Lakes Energy Company pour une centrale électrique à gaz naturel de 1,2 GW dans le comté de Lee, au Texas. L'installation fournira de l'électricité à 800 000 foyers au sein du réseau ERCOT. La construction devrait commencer à l'été 2024, avec une finalisation prévue en 2028.
La centrale à cycle combiné disposera de deux turbines à gaz Siemens Energy SGT6-9000HL, connues pour leur haute puissance et leur excellente efficacité énergétique. Les turbines sont conçues pour fonctionner à l'hydrogène avec des modifications mineures, soutenant à la fois une production d'énergie fiable et les objectifs de décarbonation.
Die Tochtergesellschaft von Argan (NYSE: AGX), Gemma Power Systems, hat einen EPC-Vertrag mit der Sandow Lakes Energy Company für ein 1,2 GW Gas-Kraftwerk im Lee County, Texas, gesichert. Die Anlage wird 800.000 Haushalte innerhalb des ERCOT-Netzes mit Strom versorgen. Der Bau soll im Sommer 2024 beginnen, mit einer Fertigstellung, die für 2028 erwartet wird.
Das Kombikraftwerk wird mit zwei Siemens Energy SGT6-9000HL Gasturbinen ausgestattet sein, die für eine hohe Leistungsabgabe und hervorragende Brennstoffeffizienz bekannt sind. Die Turbinen sind so konzipiert, dass sie mit Wasserstoff unter minimalen Modifikationen betrieben werden können, was sowohl eine zuverlässige Energieerzeugung als auch die Ziele der Dekarbonisierung unterstützt.
- Secured major EPC contract for 1.2 GW power plant
- Project will serve 800,000 homes in ERCOT grid
- Advanced turbines capable of hydrogen conversion support future clean energy transition
- None.
Insights
This EPC contract represents a major strategic win for Argan, positioning the company at the forefront of Texas's critical power infrastructure expansion. The 1.2 GW project's scale is particularly significant, capable of powering 800,000 homes in the ERCOT market, where power demand continues to surge due to population growth and industrial expansion.
The selection of Siemens Energy's SGT6-9000HL turbines is strategically noteworthy, as these units offer dual advantages: immediate high-efficiency natural gas operation and future-proofing through hydrogen compatibility. This technological choice helps mitigate potential stranded asset risks as energy markets evolve toward lower-carbon solutions.
The project's timing (2025-2028) aligns perfectly with ERCOT's projected capacity needs, as Texas continues to face grid reliability challenges. The contract likely represents a substantial multi-year revenue stream for Argan, potentially comprising a significant portion of their backlog. The company's ability to secure such a large-scale project demonstrates strong competitive positioning in the power generation EPC market.
From an investor perspective, this contract provides excellent visibility into future revenue streams and reinforces Argan's market leadership in power infrastructure development. The project's scale and technological sophistication should strengthen the company's credentials for securing similar high-value contracts in other rapidly growing power markets.
Charles E. Collins, IV, Chief Executive Officer of Gemma, commented, “We’re pleased to have this opportunity to work with SLEC on this substantial project. There is undoubtedly a critical need to bring more power facilities online to support our power grids in meeting the exponentially growing demand for reliable, high-quality energy. Our team brings proven expertise and a track record of operational execution with the goal of exceeding customer expectations and delivering project success.”
This combined cycle power station will consist of two Siemens Energy SGT6-9000HL gas turbines, among the most technologically advanced turbines in the world, featuring high power output, excellent fuel efficiency, and the capability to operate on hydrogen with only minor modifications to the equipment. These turbines can provide reliable power generation to the region while supporting decarbonization goals.
About Sandow Lakes Energy Company
Sandow Lakes Energy Company is pursuing the construction of a 1200-megawatt, ultra-efficient, natural gas-fueled power plant. The plant, located on Sandow Lakes property in
About Gemma Power Systems
Gemma, a wholly owned subsidiary of Argan, is a leading EPC services company providing innovative solutions for the power industry, including the renewable energy sector. Our wide-ranging and comprehensive experience comprises 15 GW of installed capacity including combined cycle and simple cycle natural gas power generating plants, biomass-fired power plants, solar facilities, wind farms, biofuel plants and other environmental facilities. Additional information about Gemma Power Systems can be found at www.gemmapower.com.
About Argan
Argan’s primary business is providing a full range of construction and related services to the power industry. Argan’s service offerings focus on the engineering, procurement and construction of natural gas-fired power plants and renewable energy facilities, along with related commissioning, maintenance, project development and technical consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns The Roberts Company, which is a fully integrated industrial construction, fabrication and plant services company, and SMC Infrastructure Solutions, which provides telecommunications infrastructure services.
Safe Harbor Statement
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Reference is hereby made to the cautionary statements made by the Company with respect to risk factors set forth in its most recent reports on Form 10-K, Forms 10-Q and other SEC filings. The Company’s future financial performance is subject to risks and uncertainties including, but not limited to, the successful addition of new contracts to project backlog, the receipt of corresponding notices to proceed with contract activities, the Company’s ability to successfully complete the projects that it obtains, and the Company’s effectiveness in mitigating future losses related to the Kilroot project. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to the risk factors highlighted above and described regularly in the Company’s SEC filings.
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Company:
David Watson
301.315.0027
Investor Relations:
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IMS Investor Relations
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Source: Argan, Inc.
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