Argan, Inc. (NYSE: AGX) has announced that its subsidiary, Gemma Power Systems, has entered into an Engineering, Procurement, and Construction (EPC) services contract with Sandow Lakes Energy Company, LLC (SLEC) for a 1.2 GW ultra-efficient natural gas-fired plant in Lee County, Texas. The project is set to begin construction this summer and is expected to be completed by 2028.
The power project is expected to supply electricity to approximately 800,000 homes within the Electric Reliability Council of Texas (ERCOT). The plant will be equipped with two Siemens Energy SGT6-9000HL gas turbines, known for their high power output, excellent fuel efficiency, and the capability to operate on hydrogen with minimal modifications.
Gemma Power Systems, a subsidiary of Argan, has a comprehensive experience of 15 GW of installed capacity in the power industry, 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.
Sandow Lakes Energy Company's commitment to constructing a 1200-megawatt, ultra-efficient, natural gas-fueled power plant represents a significant step in reestablishing the regional economic engine that was lost in 2018.
Argan's primary business is providing a full range of construction and related services to the power industry. Its service offerings focus on the engineering, procurement, and construction of natural gas-fired power plants and renewable energy facilities, along with commissioning, maintenance, project development, and technical consulting services through its Gemma Power Systems and Atlantic Projects Company operations.
It's important to note that the press release did not provide specific financial metrics or comparisons to the previous period. As a result of these announcements, the company's shares have moved 9.2% on the market, and are now trading at a price of $156.16. If you want to know more, read the company's complete 8-K report here.
