General Electric Company (GE) recently announced that it will provide financing, technology and maintenance services to Invenergy LLC for the construction of a 584-megawatt natural gas-fired power plant in Illinois.
Under the long-term maintenance services agreement, the plant will operate with General Electric’s 7F gas turbine technology. The plant will also use two GE A10 steam turbines and General Electric will upgrade the units with its technology and improve the overall operational performance.
Invenergy Development Company LLC is a joint venture between an affiliate of Invenergy LLC and investment firm Stark Investments. It is building the plant and expects to begin operations in early 2015. The maintenance and operations of the plant will be done by Invenergy Services LLC.
GE Energy Financial Services already had a business relationship with Invenergy LLC and has made several equity or debt investments in the past in power generation projects. In association with a consortium of other lenders, GE Energy Financial Services are providing construction and term loans for the plant, details of which were undisclosed. With this transaction, Invenergy will benefit from General Electric’s latest technology, local resources and its global experience, which are likely to help its customers generate steady revenues.
GE Energy is a leading global provider of power generation and energy delivery technologies in all areas of the energy industry including coal, oil, natural gas and nuclear energy as well as renewable resources such as water, wind, solar and alternative fuels.
General Electric, the parent company, is one of the largest and most diversified technology and financial service corporations in the world with products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content, and industrial products.
General Electric currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include ITT Corporation. (ITT), Hutchison Whampoa Ltd (HUWHY) and Raven Industries Inc (RAVN). All these stocks carry a Zacks Rank #2 (Buy).