Abengoa and GE to Invest US$180 million in Mexico's Largest Cogeneration Power Plant

Abengoa, a Spanish multinational and GE Energy Financial Services, a unit of GE, have announced plans to invest US$180 million to develop the largest cogeneration power plant in Mexico.

The new 300 megawatt gas-fired facility with a total project cost of US$640 million, will be located in the Nuevo Pemex gas processing complex. The plant will supply Nuevo Pemex with power and steam under a 20 year services agreement.

The facility will help the Mexican government meet its commitment to reduce greenhouse gas emissions by 50 per cent below 2002 levels by the year 2050.

Abengoa will finance $108 million of the project alongside GE’s $72 million, with a further $460 million being provided in the form of a structured loan from a pool of banks including Banobras, Santander, Scotiabank, La Caixa, Banco Espirito Santo, and HSBC.

The facility is expected to be fully operational in 2012.

Abengoa recently expanded their Asia Pacific presence in February 2010, opening an office in Brisbane, Australia.