Coral, AlliedSignal Form Distributed Generation Alliance
Since last summer Coral Energy and AlliedSignal Engines have
kept a lid on their alliance to market cogeneration solutions to
industrial customers because the generation market has become so
competitive. The two companies finally brought the deal out in the
open last week. It is one of the first alliances between a major
energy and financial services company and a leading manufacturer of
gas turbine engines for cogeneration units.
Together, Coral and AlliedSignal can provide financial and
technical resources covering every step of small to midsize
cogeneration projects, from economic analysis through installation
and long-term operations and maintenance. "[We bring] together all
the necessary resources for industrial customers needing less than
50 MW of power," said Coral's Kim Johnson, vice president of
"Teaming with Coral makes it possible to offer customers the
whole turnkey package, which enhances sales opportunities for our
gas turbine engines," said Tom Bray, director of industrial power
at AlliedSignal Engines. The alliance is a "proactive and
cost-effective industrial cogeneration marketing approach."
The alliance is targeting a large segment of the market for
inside-the-fence power plants, commonly referred to as distributed
generation. The partners are focusing on industrial sites with
power needs ranging from three to 50 MW and steam loads of 20,000
to one million pounds per hour. Coral said it will provide
customers in the U.S. and Canada with customized cogeneration
solutions through its risk management, financing and energy
A spokesman said the two companies plan to keep quiet about any
deals they've signed or are about to sign with buyers. The
agreement to form the alliance was completed June 15 and has
resulted in a number of cogeneration project agreements nearing
completion, he said.
Coral's small to midsize cogeneration project business is one
component of Shell Oil's power generation business. Shell said it
also plans to undertake larger power generation projects, including
cogeneration, merchant plants and generation asset acquisitions in
the U.S. and Mexico.
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