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Coral, AlliedSignal Form Distributed Generation Alliance

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 industrial services.

"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 utilization services.

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.

Rocco Canoncia

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