General Electric Co. (NYSE: GE) has announced that its Energy Financial Services division along with partners Competitive Power Ventures, Inc. (CPV) and Mitsubishi Corporation subsidiary Diamond Generating Corporation (DGC) has secured US$800 million in financing for construction costs for a new thermal power plant in California.
Located in Riverside County, California the CPV Sentinel project will employ eight GE gas-fired LMS100 turbine-generators that will combine to generate 800 MW of electricity.
According to GE when compared to "typical simple cycle gas systems" the LMS100 gas turbine can reduce natural gas consumption by over 566,000 gigajoule a year while simultaneously reducing 35,000 metric tons of CO2 emissions. GE claims that the CPV Sentinel project supports California's goal to source 33 percent of its power from renewable sources by 2020 by providing energy when the wind sources are insufficient at the facilities neighboring 600 MW wind farm.
With financing secured, Gemma Power Systems California, Inc. can now begin construction, which is expected to be complete in 2013. Once operational, CPV Sentinel's energy will be sold to Edison International (NYSE: EIX) subsidary Southern California Edison through a long-term power purchase agreement.
GE, which owns 25% of the CPV Sentinel project, saw its miday stock up 0.5% to US$19.54. CPV, the project's manager and developer, owns 25% and DGC owns 50%.
“With the help of GE’s technology and financial backing, the CPV Sentinel plant’s supply of consistent and reliable power on demand will facilitate the growth of intermittent energy sources like wind and solar that are plentiful in this area of southern California,” said Darryl Wilson, vice president—aeroderivative gas turbines for GE Power & Water.
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