Since last summer Coral Energy and AlliedSignal Engines havekept a lid on their alliance to market cogeneration solutions toindustrial customers because the generation market has become socompetitive. The two companies finally brought the deal out in theopen last week. It is one of the first alliances between a majorenergy and financial services company and a leading manufacturer ofgas turbine engines for cogeneration units.

Together, Coral and AlliedSignal can provide financial andtechnical resources covering every step of small to midsizecogeneration projects, from economic analysis through installationand long-term operations and maintenance. “[We bring] together allthe necessary resources for industrial customers needing less than50 MW of power,” said Coral’s Kim Johnson, vice president ofindustrial services.

“Teaming with Coral makes it possible to offer customers thewhole turnkey package, which enhances sales opportunities for ourgas turbine engines,” said Tom Bray, director of industrial powerat AlliedSignal Engines. The alliance is a “proactive andcost-effective industrial cogeneration marketing approach.”

The alliance is targeting a large segment of the market forinside-the-fence power plants, commonly referred to as distributedgeneration. The partners are focusing on industrial sites withpower needs ranging from three to 50 MW and steam loads of 20,000to one million pounds per hour. Coral said it will providecustomers in the U.S. and Canada with customized cogenerationsolutions through its risk management, financing and energyutilization services.

A spokesman said the two companies plan to keep quiet about anydeals they’ve signed or are about to sign with buyers. Theagreement to form the alliance was completed June 15 and hasresulted in a number of cogeneration project agreements nearingcompletion, he said.

Coral’s small to midsize cogeneration project business is onecomponent of Shell Oil’s power generation business. Shell said italso plans to undertake larger power generation projects, includingcogeneration, merchant plants and generation asset acquisitions inthe U.S. and Mexico.

Rocco Canoncia

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