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Gemma Power Systems Receives Notice to Proceed on a 1.2-GW Power Project in Texas

LCG, April 8, 2025--Gemma Power Systems (“Gemma”), a wholly owned subsidiary of Argan, Inc. (“Argan”), has received a notice to proceed on its previously announced engineering, procurement and construction (“EPC”) services contract with Sandow Lakes Energy Company, LLC (“SLEC”) for a 1.2-GW power plant in Lee County, Texas. Construction of the natural gas-fired, combined cycle facility is scheduled to commence this summer, with an expected project completion date in 2028

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NeuVentus Receives Storage Permits for its Texas Reliability Underground (TRU) Hub Salt Cavern Storage Project

LCG, April 4, 2025--NeuVentus, LLC ("NeuVentus") announced this week the receipt of a final order from the Railroad Commission of Texas (RRC) that grants a subsidiary of NeuVentus authority to create and operate 12 salt caverns for storage of a variety of gases (including natural gas and hydrogen) and liquids at its Texas Reliability Underground Hub ("TRU Hub") salt cavern storage project located in Liberty County, Texas.

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Industry News

Plant Ready to Provide Peaking Power to Silicon Valley

LCG, Mar. 31, 2003--Calpine Corporation's 180-megawatt Los Esteros Critical Energy Facility is now operating as a peaking plant that will be able to provide capacity to the California Department of Water Resources and sell power on the open market.

The plant was sited in north San Jose, in an area not far from Calpine's downtown headquarters. Los Esteros is under contract to provide peaking power for up to 4,000 hours annually, and will receive payments that will average $38.8 million per year during the current three-year contract. When not serving these obligations, the plant can be operated as a merchant facility.

Bob Fishman, a senior vice president with Calpine, commented that "Silicon Valley has long been dependent upon imported electricity . By locating Los Esteros close to the power demand, Calpine can help overcome electricity transmission cosntraints as well as addressing supply issues." Of various high-demand areas within California, Silicon Valley, overlapping with the more formally named Santa Clara Valley, was cited by the California Independent System Operator as being one of the most electrically vulnerable due to a supply-demand imbalance.

The Los Esteros plant, consisting of four 45-megawatt gas turbines, was conceived as a cleaner alternative to 98 diesel generators that were first planned as a source of power for a power-intensive Internet campus owned by U.S. Dataport. U.S. Dataport is a developer of secure facilities serving Internet data service providers, and still plans to be a customer of the plant.
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