Argan, Inc.'s Gemma Power Systems Secures Major EPC Contract for Texas Power Project
Key Ideas
- Secured a significant EPC contract for a 1.2 GW natural gas-fired power project in Texas, benefiting 800,000 homes in the ERCOT grid.
- Introduction of advanced Siemens Energy turbines capable of running on hydrogen with minor modifications, supporting clean energy goals.
- Strategic positioning in Texas's critical power infrastructure expansion, offering potential revenue growth and competitive advantage.
- The project's scale and timing align with Texas's capacity needs, contributing to grid reliability and future market leadership for Argan.
Argan's subsidiary, Gemma Power Systems, has successfully secured an EPC contract with Sandow Lakes Energy Company for a 1.2 GW natural gas-fired power plant in Lee County, Texas. This project is set to provide electricity to 800,000 homes within the ERCOT grid, with construction scheduled to commence in the summer of 2024 and completion expected by 2028. The power station will feature two Siemens Energy SGT6-9000HL gas turbines known for high power output and efficient fuel usage, designed to operate on hydrogen with minimal adjustments, thus supporting both reliable power generation and decarbonization objectives. This strategic win for Argan places the company at the forefront of Texas's expanding critical power infrastructure and showcases their competitive edge in the power generation EPC market. The project's scale and incorporation of advanced technology not only address current power demands but also anticipate future needs, aligning well with ERCOT's forecasted capacity requirements. This contract presents a significant revenue opportunity for Argan and reinforces their market leadership in power infrastructure development, opening doors for similar high-value projects in emerging power markets.