Bechtel says it will start work later this month to transform an abandoned industrial site in Dover, New York into one of the cleanest, most efficient, power-generation facilities in the United States — at a project cost of $1.584 billion.
Cricket Valley Energy Center LLC has awarded Bechtel a contract to design and build the new, natural-gas fired power plant, which will provide electricity for one million homes and create approximately 1,100 jobs at peak construction. The 1,100-megawatt (MW) combined-cycle plant to be completed in 2020 will have a low-impact design and will use advanced emissions-control technology, the contractor says.
Meanwhile, Cricket Valley Energy Center, LLC, said it had achieved a successful financial close for the project. The investors, who are providing $709 million in equity commitments, include JERA Co., Inc. (half-owned by each of Chubu Electric Power Company and TEPCO Fuel & Power); TIAA Investments; Advanced Power AG; BlackRock Financial Management Inc.; Development Bank of Japan, Inc.; and NongHyup Financial Group (under the direction of the National Agricultural Cooperative Federation of Korea).
Additionally, GE Energy Financial Services, Inc.; BNP Paribas; Crédit Agricole Corporate and Investment Bank; Bank of America, N.A.; CIT BANK, N.A; Industrial Bank of Korea; Shinhan Bank, New York Branch; Industrial and Commercial Bank of China Limited, New York Branch; NongHyup Financial Group; National Australia Bank Limited; Siemens Financial Services, Inc.; and Sumitomo Mitsui Banking Corporation are providing $875 million in funded debt facilities.
The energy center is strategically located adjacent to the Iroquois natural gas pipeline and will sell energy, capacity, and ancillary services to the New York Independent System Operator (NYISO) energy market with interconnection through Con Edison’s nearby 345 kV transmission line, Cricket Valley says in a news release.
“Cricket Valley Energy Center will revitalize a dormant industrial site, create jobs, and generate tax revenue for the Town of Dover in Dutchess County and the State,” said Robert E. De Meyere, Cricket Valley Energy Center project manager. “I am grateful to the Dover community for their continued support for this project. I look forward to bringing Cricket Valley Energy Center to the operational phase.”
Bechtel will undertake the engineering, procurement, and construction. The facility is slated for completion in the first quarter of 2020. The project will create 1,100 jobs during its peak construction period and 80 permanent and indirect jobs when the facility is operational. Advanced Power AG, which led the development of the facility, will be the construction and asset manager.
“We are committed to helping New York State meet its growing energy needs sustainably and we will support the local supply chain by hiring local craft and suppliers,” said Scott Osborne, global sector lead for Bechtel’s power business. “The addition of Cricket Valley to our portfolio of projects firmly establishes Bechtel as the leading engineering contractor for combined-cycle power generation in the U.S.”
Bechtel is responsible for the engineering, procurement, and construction of the generating facility, which will use General Electric power generation equipment including three combustion turbines, each paired with a heat recovery steam generator and steam turbine generator. Bechtel’s financing and development arm, Bechtel Enterprises, partnered with Cricket Valley Energy Center LLC to complete the development of the project.
Cricket Valley is the second combined-cycle power plant that Bechtel has undertaken for Advanced Power. Construction of the first plant, the Carroll County Energy Facility in Ohio started in 2015 and is due to be completed later this year. Bechtel is also currently building combined-cycle power facilities in Pennsylvania and Virginia, and recently completed three similar plants in Texas ahead of schedule.