Summary
Duke Energy Indiana, Inc. (a subsidiary of Duke Energy Corporation) has entered into a significant agreement with Bechtel Power Corporation for the engineering, procurement, and construction management of a new integrated gasification combined cycle (IGCC) coal-fired electrical generation facility. This facility, located in Edwardsport, Indiana, is designed to provide 630MW of base-load capacity and is targeted for commercial operation by the summer of 2012. The agreement with Bechtel has an approximate value of $200 million, and Duke Energy Indiana retains the flexibility to terminate the contract, subject to standard cancellation fees. This development signifies a substantial capital investment by Duke Energy into new generation capacity, utilizing advanced IGCC technology for coal power. Investors should note the project's timeline and its strategic importance in meeting future energy demands for the Indiana system. The contract structure with Bechtel provides some flexibility for Duke Energy Indiana, which is a key consideration for managing project risks and costs over the development period.
Key Highlights
- 1Duke Energy Indiana, Inc. entered into a material definitive agreement with Bechtel Power Corporation.
- 2The agreement is for the engineering, procurement, and construction management of a new 630MW IGCC coal-fired power facility.
- 3The facility will be located at DE Indiana's existing Edwardsport station in Knox County, Indiana.
- 4The project is expected to provide base-load capacity for the Indiana system.
- 5Commercial operation is planned for the summer of 2012.
- 6The approximate contract value with Bechtel is $200 million.
- 7Duke Energy Indiana has the right to terminate the agreement at its convenience, subject to cancellation charges.