A Glastonbury power plant engineering firm says it has accumulated a $750-million backlog of business, thanks to the industry’s thirst for renewable and efficient energy projects.
Gemma Power Systems LLC, which was founded in 1997, designs and engineers power facilities that typically replace aging power plants with more energy efficient ones. That line of business has grown in recent years with the rising demand for generators that emit fewer greenhouse gasses.
New U.S. Environmental Protection Agency rules make operating coal, oil, and inefficient power plants more expensive, and they are being replaced by more energy efficient facilities that use cleaner fuels.
That’s creating significant business opportunities for Gemma and other firms that cater to the clean energy industry.
“We plan on expanding our home office in Glastonbury in order to work on the projects we’re pursuing,” said Bill Griffin, Gemma Power’s CEO. “We go to wherever the demand is.”
Gemma’s project backlog is highlighted by two, 829-megawatt gas facilities being built in Pennsylvania and a 50-megawatt biomass plant in Woodwill, Texas that is 90 percent complete. The company has other projects as well including in California.
Texas power development company Panda Power Funds is one of Gemma’s main clients. Panda is building a natural gas facility in Towanda, Pa. to take advantage of the nearby Marcellus Shale deposits. Both companies are working to complete the Panda Liberty Power and Panda Patriot Power developments, which are 829-megawatt combined cycle power plants, consisting of two gas turbines and two steam turbines. Gemma serves as the engineering-procurement-construction contractor.
Panda Power Public Affairs Vice President Bill Pentak said big projects like installing the Panda Liberty plant is a major risk for the company, so they’ve tapped Gemma to provide a predictable budget and to ensure the project is completed on time.
“Gemma is a very focused company,” said John Coleman, Panda project manager. “They are very methodical in the way they execute the project.”
Coleman said the combined cycle plant is the most efficient form of a gas-fueled power plant because it utilizes waste and is air cooled, using less water. The combined power plant captures heat that comes from the turbines that would normally go to waste to create steam. The steam then goes into a turbine to generate electricity.
Griffin said Gemma tries to differentiate itself from competitors by touting its smaller size and ability to put decision makers on project sites, so they can be involved in day to day work. That’s important, he said, because it avoids bureaucracy and allows them to have more flexible contracts and take on projects more quickly.
“Our culture makes us different from other engineering companies,” said Griffin. “We do our own engineering and allow autonomy for project managers, allowing us to take on projects quickly.
The Panda Liberty project is the first new power plant developed in the area of the Marcellus Shale, which is seen as a major untapped natural gas reserve. Panda Liberty is set to be complete in March 2016, and Panda Patriot is scheduled to open June 2016.
“We’re seeing more natural gas power plants being constructed not just across the Northeast but across the entire country,” said Travis Windle, spokesman for the Marcellus Shale Coalition, based in Pittsburgh.
Marcellus Shale is the second largest natural gas system in the world, Windle said, an energy resource that provides more affordable and cleaner electricity to consumers. Pennsylvania is now producing more than 20 percent of America’s natural gas, making the state an attractive place for companies like Gemma to find business opportunities.
“There’s been a real change in the electric power generation,” said Windle. “We’ve been utilizing more natural gas in the past several years, and it’s a trend we continue to see.”
Griffin said Gemma looks for opportunities like these to keep replenishing its backlog.
Griffin initiated his start with Gemma by finding aging power generation facilities in the Northeast that needed to be replaced with combined-cycle, gas-fired plants to accelerate the reduction of carbon emissions.
Gemma progressed as it started engineering new and more efficient power plants, which helped it attract new clients.
In 2008, Gemma Renewable Power was formed to meet renewable energy demands, such as the use of wind turbines.
