The financing of Mexico’s largest cogeneration power plant—owned by GE Energy Financial Services, a unit of GE (NYSE:GE), and Abengoa (MCE: ABG.MC)—has been named Overall Latin American and Latin American Power Deal of the Year by Project Finance magazine.
Announced at the 12th Annual Project Finance Deals of the Year Awards Dinner in New York City on March 3, the magazine selected the financing for the 300-megawatt cogeneration power plant under construction in Tabasco, México, because it enabled construction of the first independently-owned power plant to supply Mexican state oil company PEMEX.
“These awards are a tribute to the willingness of the Méxican government and the project’s sponsors—GE and Abengoa—to work through the effects of the credit crunch and should herald easier private investment in Mexico’s energy sector,” said Tom Nelthorpe, Editor of Project Finance magazine.
In June 2010, GE and Abengoa announced that they would jointly invest $180 million to develop the largest cogeneration power plant in Mexico. Construction began in September 2009, with commercial operation expected next year.
The cogeneration power plant will use two GE Energy Frame 7FA gas turbines and will supply electricity and steam under a 20-year services agreement to the Nuevo Pemex gas processing complex, owned by a subsidiary of PEMEX. The plant is expected to directly supply 55 percent of Nuevo Pemex’s steam demand and all of its power demand; additional power output will be provided to other PEMEX operations throughout Mexico over its national transmission system.
Cogeneration, the simultaneous production of electricity and heat using a single fuel source such as natural gas, harnesses heat that would otherwise be wasted. This can result in higher thermal efficiency or higher heat values; also, carbon dioxide emissions can be substantially reduced.
These awards strengthen Abengoa’s position as a global leader in the application of innovative solutions for sustainable development, and underscore GE Energy Financial Services’ core strengths in structuring investments in long-lived, critical energy assets.
Abengoa, GE 300MW cogeneration plant named Latin American power deal of the year