There will be an increase in the supply of reliable, lower-emissions energy for Chihuahua, Mexico as GE (NYSE: GE) is set to supply two Frame 7FA Gas Turbines and long-term services for the Norte II Combined-Cycle Power Plant, an independent power project (IPP) located in the region.
GE announced the Norte II project at the Latin America Engineering, Procurement & Construction (EPC) Summit in Mexico City, which calls on GE’s EPC partners from throughout Latin America to discuss market and technology trends. The announcement came as GE bared its ambitious plan to work on the first phase of a 2-year, $3 million wind energy project by the U.S. Department of Energy to develop a next generation wind turbine generator that targets 10-15MW.
A consortium formed by South Korean companies Samsung Construction & Trading Corp., Korea Electric Power Corporation (KEPCO) and Techint Engineering and Construction in Mexico will operate the Norte II power plant, while the EPC contractors are Samsung Engineering and Techint Engineering and Construction. Scheduled to enter commercial operation in May 2013, Norte II will supply 433 megawatts of power to Comisión Federal de la Electricidad (CFE), the state-owned utility, for use in the northern part of Mexico.
“The Norte II project will utilize GE’s advanced technology to produce reliable, efficient power with lower emissions than conventional power plants,” said Changjin Jeong, general manager of KEPCO.
“It demonstrates how IPP plants can a play a key role in providing power to support the continuing growth of the region’s infrastructure.”
“This contract reflects the confidence of our clients in GE’s technology. Our turbines offer high reliability, availability and operating flexibility, making them an excellent fit for IPPs,” said Marco Vera, general manager—thermal business for GE Energy Latin America.
A member of GE’s well-proven F technology portfolio, 7FA Gas Turbines have compiled 25 million fired hours worldwide. The 7FA technology continues to evolve and today, this gas turbine offers greater than 57 percent thermal efficiency in combined-cycle operation. Each point of increased efficiency translates into significant savings in fuel cost per megawatt of energy produced.
In a combined-cycle power plant, exhaust heat from a gas turbine is used to generate steam to drive a steam turbine-generator and create additional plant output without an increase in fuel, leading to a significant reduction in emissions.
In addition to supplying gas turbines, GE will provide plant services under a long term contractual service agreement (CSA). CSAs cover the supply of parts, repairs and field services for planned and unplanned outages for gas turbine-generators and accessory equipment, along with performance guarantees.
These agreements are structured to provide customers with predictable maintenance costs, while ensuring a steady revenue flow from power plant operations. To date, GE has long-term service agreements including CSAs in place at more than 700 sites worldwide.