Argan, Inc. Announces EPC Contract for 1.2 GW Power Plant in Texas

Argan, Inc. (NYSE: AGX) recently revealed significant news as its subsidiary, Gemma Power Systems, has inked an Engineering, Procurement, and Construction (EPC) agreement with Sandow Lakes Energy Company, LLC in Rockdale, Texas. This contract pertains to the development of a 1.2 GW ultra-efficient natural gas-fired power plant in Lee County, Texas. The noteworthy project aims to supply power to approximately 800,000 households within the Electric Reliability Council of Texas (ERCOT).

Expected to kick off construction this summer, the completion date for the project is anticipated to be around 2028. Gemma Power Systems, the wholly owned subsidiary of Argan spearheading this endeavor, stands poised to bring its expertise to bear on this substantial venture.

Charles E. Collins, IV, Chief Executive Officer of Gemma Power Systems, expressed enthusiasm about the collaboration, emphasizing the pressing necessity for additional power facilities to meet the escalating demand for reliable energy. The project includes the utilization of cutting-edge Siemens Energy SGT6-9000HL gas turbines, known for their high power output, exceptional fuel efficiency, and adaptability to operate on hydrogen.

Sandow Lakes Energy Company’s initiative to construct an ultra-efficient natural gas-fueled power plant signifies a pivotal move to bolster the regional economy. Positioned on Sandow Lakes property in Lee County, Texas, this plant marks a significant step in site redevelopment efforts.

Gemma Power Systems, renowned for its innovative solutions in the power industry, is a key player in this strategic alliance. With a robust track record that includes installing 15 GW of capacity across various energy sectors, Gemma Power Systems is well-equipped to deliver successful project outcomes.

Argan, the parent company overseeing Gemma Power Systems, focuses primarily on providing construction services to the power industry. Its operations encompass the engineering, procurement, and construction of natural gas-fired power plants and renewable energy facilities.

As is common with forward-looking statements, certain risks and uncertainties could impact the outcome of projects. Investors are advised to refer to the cautionary statements provided by Argan in its Securities and Exchange Commission filings for a comprehensive understanding of potential risk factors that might affect the company’s future performance.

For more information about Gemma Power Systems and its role in this project, visit www.gemmapower.com.

Inquiries:
David Watson, Company Contact, Phone: 301.315.0027
Investor Relations: John Nesbett/Jennifer Belodeau, IMS Investor Relations, Phone: 203.972.9200, Email: [email protected]

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Argan’s 8K filing here.

Argan Company Profile

Argan, Inc, through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 18 gigawatts of power-generating capacity.