Coral Energy Announces Joint Venture with Allied Signal at Power-Gen '98
Yesterday during Power-Gen '98 Coral Energy and Allied Signal announced that they are teaming up to market cogen services to industrial customers in the U.S. and Canada. This is the first joint venture between an energy services company and a major gas-turbine manufacturer.
According to Allied Signal Engines Industrial Power Director Tom Bray: "the Coral and Allied Signal alliance is a proactive and cost-effective industrial cogeneration marketing approach. Teaming with Coral makes it possible to offer customers the whole turnkey package, which enhances sales opportunities for our gas turbine engines."
This joint venture enables each company to offer complementary resources that customers would ordinarily need to separately seek out for a cogen project. Together, the two companies can offer customer support at every step of the project cycle, from concept and planning through installation, operation, and maintenance of a cogen project. Coral will offer risk management, project financing, and energy utilization services while Allied Signal will provide the equipment and operational support. Cogen services offered by the new alliance will include:
- Site operational and technical review
- Project economic analysis
- Engineering
- Design
- Permitting
- Installation
- Equipment
- Operations
- Maintenance
- Equipment upgrades
- Fuel
- Risk management
- Financing
- Ownership
Coral and Allied Signal will be targeting industrial sites with power need from three megawatts to 50 megawatts and steamloads of 20,000 to 1 million pounds per hour. This target group represents a significant segment of the potential customers who are candidates for this type of on-site power generation.
The drive towards more distributed generation will increase the market for these types of projects. Some of the advantages of on-site cogen projects like this include high efficiency, competitive costs, and superior environmental performance.
Though the partnership was just announced yesterday, the agreement to join forces was actually completed in June. Further, the pairing has already resulted in a number of cogen-project contracts already nearing finalization. Terms of the agreement are confidential between the two companies and no details have been disclosed.