BAE Systems (LSE: BA.) has been awarded the contract to construct a chemical processing facility for the US army, and combined heat and power is to be at the heart of the project.

The $27m contract at Holston Army Ammunition Plant in Tennessee will use cogeneration to ensure energy consumption is optimised.
Holston Army Ammunition Plant in Tennessee
The steam produced from natural gas in the process will be responsible for 90 per cent of the power required by the plant.

This new contract initiates the final phase of construction that began in 2011 and brings the total project to approximately $143 million.

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