Argan Inc. announced on April 7 that its subsidiary, Gemma Power Systems (Gemma), has received the official Notice to Proceed on its previously announced Engineering, Procurement, and Construction (EPC) contract with Sandow Lakes Energy Company, LLC (SLEC) for a significant 1.2 GW ultra-efficient natural gas-fired power plant in Lee County, Texas. This major project has now been officially added to Argan’s project backlog. Construction is slated to commence this summer, with the anticipated completion date set for 2028.

The ambitious project will be developed and owned by a subsidiary of SLEC and will operate within the Electric Reliability Council of Texas (ERCOT) grid, a crucial electricity market experiencing increasing demand. The combined cycle power station will feature two cutting-edge Siemens Energy SGT6-9000HL gas turbines, recognized globally for their high power output and exceptional fuel efficiency. Notably, these advanced turbines possess the capability to operate on hydrogen with only minor modifications, positioning the plant for potential future decarbonization efforts. The location of the power station will be near a 24-inch tap off the Matterhorn Natural Gas Pipeline.

Charles E. Collins, IV, CEO of Gemma, expressed his enthusiasm for the project, stating, “We’re thrilled to move forward with SLEC on this major power project. Their strong development efforts set the stage for success, and we look forward to working together. Expanding power infrastructure is essential to meeting rising energy demands, and our team is dedicated to delivering exceptional results.”

Sandow Lakes Energy Company also conveyed its excitement about this significant undertaking. In a statement, SLEC highlighted that this 1.2 GW combined cycle natural gas power plant represents a “significant milestone” in their commitment to providing reliable, efficient, and environmentally responsible energy solutions to meet the growing demands of Texan communities. The company emphasized the plant’s technical excellence and its role in contributing to the state’s ever-growing power needs.

Beyond its technological advancements, the project is expected to generate significant economic benefits for Lee County and the wider region. SLEC anticipates the creation of numerous jobs during the construction phase, followed by continued employment opportunities in the plant’s operation and maintenance. The presence of the power plant is also projected to foster a thriving economic environment within the local community.

Gemma Power Systems, a leading EPC services company within the power industry, brings extensive experience to this large-scale project. Their portfolio includes over 15 GW of installed capacity across various technologies, including combined cycle and simple cycle natural gas power plants, renewable energy facilities, and other environmental projects. This track record underscores their capability to successfully execute complex and critical infrastructure projects like the SLEC power plant.