ROCKVILLE, Md.–(BUSINESS WIRE)–Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) announced
today that its wholly owned subsidiary, Gemma Power Systems (“Gemma”),
recently entered into an engineering, procurement and construction
services contract with ESC Harrison County Power, LLC to construct a 625
MW natural gas-fired power plant in Harrison County, West Virginia.
Harrison County Power Project is a combined-cycle facility composed of
one General Electric 7HA.02 combustion turbine generator (CTG),
connected to a heat recovery steam generator (HRSG). The HRSG will
harness exhaust heat from the CTG to generate high-quality, superheated
steam. The steam will drive a steam turbine (ST) to generate additional
electricity in an environmentally friendly and efficient manner. The
plant will also have an air-cooled condenser (ACC), which will
dramatically reduce water usage to less than 3 percent of many similarly
sized facilities. When operating, the plant will provide enough power
for approximately 425,000 homes through the PJM interconnect (grid).
A limited notice to proceed has been issued to Gemma to continue project
planning and engineering activities. Caithness Energy, L.L.C.
(“Caithness”) partnered with Energy Solutions Consortium, LLC (“ESC”) to
develop the project. Construction for the facility is scheduled to begin
in the summer with completion scheduled in 2022.
“We are thrilled to have the opportunity to help deliver cleaner,
reliable energy to Harrison County and the greater West Virginia
community,” said William F. Griffin, Jr., Chief Executive Officer of
Gemma Power Systems.
“Caithness has selected Gemma to construct this important project for a
number of reasons. Gemma recently completed our 1,080 MW Freedom natural
gas-fired power plant which was constructed for the lowest cost per
installed kilowatt of any recent project in the region,” said Ross Ain,
President of Caithness.
“Gemma has been a good member of the local communities in which it does
business. Gemma also has maintained an excellent safety record in
constructing these plants. We believe Gemma will serve the project and
the community well in this large undertaking,” said Mr. Ain.
Rainer Bosselmann, Chairman and Chief Executive Officer of Argan,
stated, “With the signing of another project and receipt of the related
limited notice to proceed, we are pleased to see our project backlog
grow to over $1.4 billion. It has taken a lot of hard work and effort to
get to this point and we appreciate the patience our shareholders have
shown us.”
About Argan, Inc.
Argan’s primary business is providing a full range of services to the
power industry, including the engineering, procurement and construction
of natural gas-fired power plants, along with related commissioning,
operations management, maintenance, project development and consulting
services, through its Gemma Power Systems and Atlantic Projects Company
operations. Argan also owns SMC Infrastructure Solutions, which provides
telecommunications infrastructure services, and The Roberts Company,
which is a fully integrated fabrication, construction and industrial
plant services company.
About Caithness
Caithness Energy, L.L.C. is a privately owned independent power producer
engaged in the development, acquisition, operation and management of
environmentally progressive renewable energy and natural gas power
plants in the United States. Since 1995, Caithness has successfully
invested in 54 power projects utilizing wind, geothermal, solar and
natural gas.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal securities
laws and are subject to risks and uncertainties including, but not
limited to, the Company’s successful addition of new contracts to
project backlog, the Company’s receipt of corresponding notices to
proceed with contract activities and the Company’s ability to
successfully complete the projects that it obtains. Actual results and
the timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to a
number of factors detailed from time to time in Argan’s filings with the
SEC. In addition, reference is hereby made to cautionary statements with
respect to risk factors set forth in the Company’s most recent reports
on Forms 10-K and 10-Q, and in other SEC filings.
Contacts
Company Contact:
Rainer Bosselmann
301.315.0027
Investor Relations Contact:
David Watson
301.315.0027
