Leading power and automation technology company, ABB Ltd. (ABB), recently received multiple contracts from Italy-based power generation plants and related services provider – Ansaldo Energia. The news, coming on Nov 13, did not provide much impetus to the company’s shares which remained flattish.
Per the first contract, ABB is required to provide a plant automation system and substation expansion for the latest gas-fired power plant in the Batna, Algeria – Ain Djasser III. The plant is operated by the leading power generation company of Algeria – Sociéte Algérienne de Production de l'Electricité.
ABB will be deploying its distributed control system for the open cycle power plant, which has a capacity of 340 megawatt (MW). The control system is designed on the basis of ABB’s Symphony Plus total plant automation platform. The efficient and user-friendly platform comes with S+ Operations human machine interface, along with a turbine control system based on Symphony Harmony rack I/O (Input/Output).
Per the second contract, ABB will be enhancing the substation to extend the power generated in Ain Djasser plants to the transmission grid in Algeria. The air-insulated substation, with a capacity of 220 kilovolt (KV), was deployed by ABB in 2008. The substation will be expanded presently, in order to handle the increased power generation after the third plant at the site becomes operational. For this, ABB will be offering a diverse range of solutions from providing high-voltage components to protection and management of the substation.
ABB, being in charge of the designing, engineering and supply as well as commissioning of these two contracts, expects to initiate the energy production at the plant by 2016.
ABB and Ansaldo Energia have partnered previously as well to augment power generation in Algeria. Presently, as much as 30% of the country’s power generation capacity is attributable to gas turbines from Ansaldo Energia and control systems from ABB. ABB has supplied control systems for over 4,400 MW of power generated from the Ain Djasser I and II plants and also a couple of 340 MW plants in the Ain Djasser complex. These plants were commissioned by the two companies in 2010 and 2014, respectively.
ABB currently has a Zacks Rank #4 (Sell). Some better-ranked stocks that can be considered at present include Pioneer Power Solutions, Inc. (PPSI), AO Smith Corp. (AOS) and CLARCOR Inc. (CLC). While Pioneer Power Solutions sports a Zacks Rank #1 (Strong Buy), both AO Smith and CLARCOR carry a Zacks Rank #2 (Buy).
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