ATCO subsidiary Canadian Utilities will build the plant in partnership with Mexican energy infrastructure developer Ranman Energy on the site of the Chemours Company Mexicana’s chemical facility in Durango state.
The La Laguna cogeneration plant is planned to use gas and steam by-products of the Chemours facility’s chemical processes to produce power and heat. Power not used at the facility will be sold back to the grid.
ATCO said the total investment in the project was around CAD70m ($54m).
The new plant is expected to come online in 2019.
“Industrial customers in Mexico are increasingly looking for creative solutions that allow them to capitalize on the country’s energy market reforms,” said Wayne Stensby, ATCO’s Managing Director, Electricity.
“Our latest project ensures Chemours has access to the reliable electricity and steam it needs to run its operations, while also providing low-carbon electricity back to the market.”
ATCO said it entered the Mexican market in 2014 and this latest project “continues to expand its portfolio in Mexico”.