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Details - Information last confirmed on March 22, 2021
This Northern California-based Heavy Industrial Contractor is a California S Corporation and was formed in 2004 and for 17 years has been building a great reputation nationwide in the industry. They are a full-service heavy industrial contractor capable of performing almost all facets of construction. In particular, they are very strong in the power generation business in the US. This includes the relocation, upgrade, and installation of gas turbines. They have extensive experience with General Electric (LM and Frame Units), Pratt & Whitney, and Westinghouse designs. Additionally, this company is on the leading edge of completing Battery Storage - including integration with gas turbine plants and has just recently completed three facilities one as large as 20 MW. This is a large part of the green energy initiatives that are occurring nationwide. They have also completed Landfill Gas to Energy and Solar projects as well as general construction activities in commercial/industrial facilities.
This company is small and nimble enough to take on unique, fast track, highly profitable projects nationwide, that their larger competitors are just not flexible enough to accommodate.
Growth / Expansion overview
Gas Turbine market size exceeded $6B in 2019 and is anticipated to grow at a rate of over 8% Compound Annual Growth Rate (CAGR) through 2026. Favorable government policies regarding the reduction of Greenhouse Gas (GHG) emissions and the usage of clean fuels for electricity generation are expected to increase demand for natural gas-based power plants over coal-based power plants. The US market is anticipated to witness a prominent growth on account of rising government support for power generation technologies that aim to reduce carbon dioxide emissions and support Green Energy Initiatives. According to the Energy Information Administration, natural gas was the largest source of electricity generation in the US in 2019, occupying a 38% share in sources of the US power generation market. This holds true in California, where they still rely on natural gas plants to meet about one third of the stateâ€™s electricity demand. Energy storage (battery storage) in conjunction with natural gas turbines is gaining significant traction. This company has some of the leading-edge experience in doing this. Why is it important? Because of the requirements in California and that will be sweeping across the US, it may become mandatory at some point for energy storage to be coupled with each new natural gas plant. The Federal Energy Regulatory Commission (FERC) is now requiring energy storage to be incorporated as well.
Support / Training Comments
The Seller is willing to stay on and work with new ownership for at least one year under an employment agreement to assist with transition and help secure more business. A longer stay can be mutually agreed upon between the Buyer and Seller.
Reason For Sale
Seller is moving out of state
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