Distributed generation joint venture agreed

Coral Energy and AlliedSignal Engines have formed an alliance to jointly market comprehensive cogeneration solutions for industrial customers in the USA and Canada.

The alliance will target industrial sites with power needs ranging from 3 to 50 MW and steam loads of 900 to 454 000 kg/hr. Under the agreement, Coral, an affiliate of Shell Oil Company, will package customized cogeneration solutions using AlliedSignal`s small to mid-sized gas turbine range.

Coral will initially target its existing natural gas customers, and already has a number of project agreements which are close to finalization. It aims to draw on its financial and technical resources to provide turnkey solutions for clients – from economic analysis to installation and operation and maintenance.

The deal strengthens both Coral`s and AlliedSignal`s position in the deregulating North American energy market. It is a major part of Shell`s strategy to own ten to 15 per cent of the unregulated power generation capacity in the USA by 2003. For AlliedSignal, the alliance will enhance its gas turbine engine sales opportunities.