Fast-Track Turnkey Power Agreement
APR Energy, GE team for mobile turbine power business; deal includes 520 MW capacity, current rental contracts, supply, service
APR Energy has formed a strategic alliance with GE, extending both companies’ reach in the growing fast-track turnkey power solutions segment.
Under terms of the deal, GE contributes its turbine rental business to APR Energy in return for cash and approximately 16.5% of APR Energy, making GE a key strategic investor in the company. The deal includes approximately 520 MW of capacity and rental contracts that GE currently has in place in Canada, Iraq, Australia, the U.S. Virgin Islands and Bangladesh.
Additionally, GE and APR Energy have entered into a supply and services agreement that will continue to provide support to current and future clients of APR Energy.
APR said the transaction diversifies its revenue base, gives it exposure to new geographies and sectors, and enhances the company’s natural gas footprint. APR’s mobile turbine power capacity will increase to 1.2 GW – enough to power the equivalent of 1.2 million U.S. homes.
Demand for fast-track power is driven by factors that include increasing energy consumption, aging infrastructure, geopolitical and natural events, and climatic impacts. Mobile turbine usage within this space has grown rapidly as customers look towards larger-scale, semi-permanent solutions that integrate into their existing plants or operations and can offer greater reliability, fuel flexibility and lower emissions, the company said.