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The project, worth $1,550 million, includes construction of the plant and 25 years of operation and maintenance.
- The plant, which will have a capacity of 924 MW, will strengthen the power supply in northern Mexico.
WASHINGTON, Jan. 9, 2015 (GLOBE NEWSWIRE) -- Abengoa (MCE: ABG.B/P SM) (Nasdaq:ABGB), the company that applies innovative technology solutions for sustainability in the energy and environment sectors, has been chosen by Mexico's Federal Electricity Commission (CFE) to carry out the Norte III project, consisting of a 924 MW combined cycle plant in Ciudad Juárez (Mexico) as part of the National Investment Plan 2014-2018 recently announced by the Mexican government.
Abengoa will be responsible for the engineering, design and construction of the combined cycle plant, as well as its subsequent operation and maintenance for a 25 year period. The total contract is worth $1,550 million, including construction, operation and maintenance of the plant. Abengoa's project is expected to be completed within 30 months, creating up to 2,000 direct and indirect jobs during the construction phase. The investment during the construction phase will total around $700 million, which will be financed with a mix of equity and non-recourse debt. Abengoa will take an equity stake in the project.
This latest contract will bring the estimated backlog for Abengoa's engineering and construction division to around €9,300 million, based on the figure from the end of 2014.
The plant will produce enough power to supply more than 500,000 homes every year, providing an efficient response to the needs of the region's inhabitants while improving the country's energy independence. It will also reduce greenhouse gas emissions and the end cost of electricity to consumers.
The Norte III project is the largest combined cycle plant in Mexico and the second that Abengoa will have constructed for the CFE, after the 640 MW Centro Morelos plant currently under construction. Abengoa is also carrying out two power transmission projects for the CFE.
This new contract will consolidate Abengoa's leadership position in Mexico where it has been present for 30 years. It has carried out numerous projects in the country, helping to develop its energy system through innovative technology solutions.
About Abengoa
Abengoa (MCE: ABG.B/P SM) (Nasdaq:ABGB) applies innovative technology solutions for sustainability in the energy and environment sectors, generating electricity from renewable resources, converting biomass into biofuels and producing drinking water from sea water. (www.abengoa.com)