Dive Brief:
- Entergy Texas has given McDermott International full notice to proceed on construction of an estimated $937 million natural gas combined cycle power plant in Willis, Texas. A McDermott press release indicated that its contract with the power company is for between $500 million and $750 million. Entergy originally awarded McDermott the contract in early 2017.
- The contractor will provide engineering, procurement, construction and commissioning services for the 993-megawatt plant that is scheduled to go into operation in 2021. The power station project is expected to generate 750 construction jobs and have a $1 billion impact on the surrounding economy.
- In May, McDermott announced it combined with Chicago Bridge & Iron Co. to create an integrated technology, engineering and construction solutions company for the energy industry.
Dive Insight:
Natural gas is considered a much cleaner fuel than coal, and a number of energy companies nationwide have plans to build gas power plants. South Field Energy announced last month that it selected Bechtel to build its $1.3 billion combined cycle plant in Columbiana County, Ohio. The project will create 1,000 construction jobs at the peak of its schedule, and when complete, the plant will power 1 million homes.
Earlier this year, Entergy's Louisiana division broke ground on an $872 million combined cycle, natural gas-fired plant in Lake Charles, Louisiana. The conversion from coal to natural gas is expected to save the company's customers between $1.3 billion and $2 billion over 30 years. The new facility will also reduce carbon dioxide emissions by an estimated 40%.
The Lansing Board of Water and Light in Michigan also wants to make the switch from coal and announced plans to build a $500 million natural gas plant, which is expected to enter into service in early 2021. The board wants to produce 30% clean energy by 2020, and the Lansing plant figures prominently in that plan.
