Archives (2010 & Beyond)

Gas-fired Power Plants Make a Comeback

Homewood, IL - January 4, 2009 -- The first wave of gas-fired power plant construction - a boom that started in the early 1990s and ended a decade later - was driven by cheap natural gas prices and spurred by the desire for a quick return on investment by merchant developers and independent power producers in a newly regulated power market.

However, it is a different set of circumstances altogether that has brought about a recent renewed interest in gas-fired power plants being built throughout the United States.

"Recently we've seen plans for many coal plants being delayed or canceled due to environmental concerns surrounding the use of coal in power production," said Tom Gore, vice president, Graycor Industrial Constructors Inc. "In order to bridge increased power demand, clean-burning, natural gas-fired plants are proving to be an effective alternative, having shorter cycle times, and operating and fuel flexibility," he added. "When power producers are faced with increasing demands for power, a coal-fired facility takes years to permit and build. Gas-fired plants, again, seem to be the natural choice at this time to fill the gaps."

Gas-fired electricity generation is expected to increase steadily over the next 20 years. Graycor's experience with natural gas combined-cycle plants - designed for intermediate to base-load service - and simple-cycle, or peaking plants - which are built to handle power demands during peak times, such as summer months - spans with numerous plants built from Nevada to Pennsylvania over the past two decades.

In Primm, Nev., Graycor Industrial built Reliant Energy's 548-megawatt, combined-cycle, gas-fired power plant to serve nearby Las Vegas and the surrounding region. The project included installation of two Siemens Westinghouse 501FD combustion turbines, one steam turbine, two heat recovery steam generators, an air-cooled condenser and a switchyard.

Also for Reliant Energy, Graycor Industrial built an 873-megawatt simple-cycle gas-fired facility in Aurora, Ill. The design-build project included installation of 10 combustion turbines (four General Electric Frame 7 FAs and six General Electric LM 6000s), as well as site work and civil construction.

"Graycor Industrial also has the distinction of building the only two new power producing facilities in the city of Chicago in decades," Gore added. For Exelon Generation, Graycor Industrial helped rejuvenate the city's southeast industrial corridor by building a 350-megawatt power plant, consisting of eight General Electric 6Bcombustion turbines, all fueled by natural gas, a switchyard, a power distribution center building and an operations building.

"Graycor's experience, project team, safety record and proven track record on fast-track jobs made them an easy choice for this project," said Jack Thomas, senior project manager, Exelon. On Chicago's South Side, Graycor Industrial constructed a 300-megawatt generation facility for Calumet Energy LLC, including installation of two Siemens Westinghouse V84 turbines.

For Constellation Power, Graycor Industrial built two simple-cycle gas-fired plants - one in Kennerdell, Pa., and another in University Park, Ill. Five Pratt and Whitney twin pack turbines were set in constructing the 250-megawatt facility in Kennerdell. The 300-megawatt plant in University Park consisted of installation of six Pratt and Whitney twin-pack combustion turbines.

Also in University Park, Ill., Graycor Industrial built a 530-megawatt, simple-cycle plant for PPL Global. The project included installation of 12 General Electric LM6000 natural gas-fired combustion turbine generators.


About Graycor Industrial Constructors Inc.    For more than 80 years, Graycor Industrial Constructors Inc. (Graycor Industrial) has been taking on the toughest heavy industrial construction projects across North America in a variety of markets including metals, power and process. The company has earned a reputation in the industry for developing long-term, collaborative partnerships that result in projects being completed efficiently, effectively and, most importantly, safely.

About the Graycor Companies    The Graycor companies - Graycor Industrial Constructors Inc., Graycor Construction Company Inc., Graycor Blasting Company Inc., and Graycor International - provide a wide variety of industrial and commercial construction services, as well as industrial maintenance technologies, across North America. As a top ranking industry leader with annual revenues in excess of $600 million, Graycor commits to safe working environments, demands excellence and rewards passion. Established in 1921, Graycor employs more than 1,500 construction specialists at the Chicago headquarters, regional offices and project locations across the United States, Canada and Mexico. For more information on the Graycor family of companies, visit www.graycor.com or call 1-630-684-7110.

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For further information:

Tom Midura

Tom_Midura@graycor.com

Phone: 630.684.7294