Fluor Corporation (NYSE: FLR) announced that it was awarded an early-phase engineering, procurement and construction (EPC) contract by PNM (NYSE: PNM) to provide environmental services upgrades for four power units at the coal-fired San Juan Generating Station in New Mexico. Fluor will book the undisclosed first phase value of this project into backlog in the fourth quarter of 2012.
Fluor expects to begin the second phase in January 2013 with full notice-to-proceed projected for mid-2013. Fluor will provide full EPC services to design, build, install and commission new selective catalytic reduction (SCR) equipment for each of the San Juan Generating Station’s four units totaling 1,848 megawatts of capacity, which will significantly reduce the nitrogen oxide (NOx) emissions. When the environmental upgrades are completed, the equipment utilized will provide one of the highest NOx removal efficiencies in the country and will comply with the Environmental Protection Agency federal plan to address regional haze at San Juan Generating Station.
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“This first phase contract for a new SCR project has been the result of a highly collaborative process with PNM,” said Dave Dunning, president of Fluor’s Power Group. “Fluor is a leader in providing environmental compliance services for power plants across the country with more than 39,000 megawatts of SCR upgrade projects completed. We will assist PNM with creative, flexible solutions to bring cleaner power to its customers.”
“We have been very impressed with Fluor’s professionalism and flexibility as we have been engaged to bring this project to reality over the past several months,” said Ron Talbot, senior vice president and COO of PNM Resources, the parent company of PNM. “We appreciate Fluor’s willingness to develop approaches that keep our compliance with the federal regional haze rule on track while also giving PNM and the other San Juan Generating Station owners the flexibility to aggressively explore alternatives to the federal plan. Minimizing the cost impact to customers while alternatives were explored is important, and Fluor has helped us achieve that.”
The San Juan Generating Station is located in Waterflow, N.M., and is expected to have more than 500 craft laborers at construction peak in mid-2015. All units are expected to be online by mid-2017. Fluor’s Greenville, S.C. office is expected to lead the project.
Fluor previously served as EPC contractor for the LUNA (partially-owned by PNM) natural gas, combined cycle facility in Deming, N.M. that was completed in 2006.