Endesa to push for international growth
Spanish electricity major Endesa has announced plans to expand overseas following its failed bid to merge with Iberdrola. The group will sell €5bn ($4.6bn) of assets in Spain to help finance acquisitions in Europe and Latin America.
Endesa is aiming to invest a total of €20.5bn over the next five years in Europe, the US and Latin America. To help finance this plan, Endesa will sell 2500-2600 MW of generation capacity and distribution networks serving 600 000 clients, mostly in Cantabrico.
Endesa will invest €5bn in Europe – mainly in France, Italy, Poland and the Netherlands – to secure 8000 MW of capacity and 5m clients. Investment in Latin America will reach €4.2bn, and will be aimed mainly at Brazil where Endesa is aiming to capture ten per cent of the market.
The assets sales, equivalent to five per cent of the domestic market, will take place over the next two years. Endesa expects to receive a good price for these assets from foreign companies vying to gain a foothold in the Spanish market.
Endesa’s plans for expansion in its domestic market fell through in February when restrictions imposed by competition authorities forced it to call off its planned merger.
Foster Wheeler FGD deal
Foster Wheeler Corporation has signed an agreement giving it worldwide rights to market, sell and supply Lurgi Lentjes Bischoff GmbH’s ammonia-based flue gas desulphurization (FGD) equipment.
The deal will allow Foster Wheeler to install the Lurgi Lentjes FGD technology on plants that it constructs using its circulating fluidized bed (CFB) boiler technology. The FGD systems will help these plants meet increasingly stringent emission regulations.
The Lurgi Lentjes technology also produces a by-product that can be converted into a sulphur-rich, commercial-grade fertilizer for the agricultural industry.
CFB boilers are well-suited to the combustion of high sulphur, solid waste fuels. When combined with FGD technology, the amount of limestone consumed and the quantity of calcium-rich ash generated can be greatly reduced.
Global Power IPO
Global Power Equipment Group Inc., which manufactures equipment for gas turbine power plants, is planning to raise $125m through an initial public offering. The US-based firm will use proceeds to repay existing debt and accrued and unpaid preferred dividends.
Global Power’s products include heat recovery steam generators, gas and steam turbine enclosures and exhaust systems. The company will sell common shares and has applied for a listing on the New York Stock Exchange under the symbol ‘GEG’.
Revenues for 2000 grew to $416m from $275m in 1999, driven by high demand for gas turbine-based generation equipment. The firm sees growth potential in the US market, citing the Energy Information Administration’s estimate that 1300 new plants and 390 GW is needed by 2020.
Wood Group buys H&L
Wood Group Power has acquired H&L Accessory Inc., a gas turbine repair and overhaul company, for $12m. The deal will allow Wood Group Power to expand its industrial accessory repair and overhaul portfolio, and is in line with the company’s strategy of becoming a one-stop shop for its client’s accessory and component repair needs.
“There is a huge amount of complementary capability between H&L and our existing accessory repair and overhaul companies,” said John Angus, managing director of Wood Group Power’s Accessories and Components business.
The acquisition is the latest part of a major programme of international expansion by Wood Group, an independent gas turbine maintenance, repair and overhaul service provider.
Ensource becomes microturbine distributor
Canada-based Ensource Energy Services Inc. has signed a deal with Capstone Turbine Corporation to become a global distributor of Capstone’s microturbines. Ensource will become a distributor and authorized service provider for the oil and gas industry in western Saskatchewan, Alberta and northeastern British Columbia.
Dr. Mike Almgren, president of Capstone, said: “We are very pleased to have Ensource as our distribution partner for the oil and gas industry in western Canada. Ensource is uniquely positioned, through its extensive branch office coverage … to put out technology to wider use and provide top quality after sales support.”
Capstone’s microturbines are capable of burning solution gas, including sour gas with up to seven per cent hydrogen sulphide content, making them ideal for converting flared gas into onsite electricity in remote locations.