Competitive Power Ventures (CPV) has started construction on the CPV Basin Ranch Energy Center, a 1,350MW combined cycle natural gas power facility in Ward County, Texas, US.
The project, located in the Permian Basin, represents an estimated $2bn investment and is expected to generate more than $400m in local tax revenue during its operational lifespan.
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Engineering, procurement, and construction company Gemma Power Systems will oversee the construction of the facility, which will use turbines supplied by GE Vernova.
The plant is designed and permitted to include a carbon capture system in future development phases.
CPV expects the facility to reach commercial operations in 2029, at which point it will have the capacity to supply electricity to approximately 850,000 homes in western Texas.
CPV CEO Sherman Knight said: “These are the days that excite our team, seeing a project enter into construction after years of development. We are committed to bringing responsible energy to regions where power generation is needed.
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By GlobalData“To us, responsible energy means building projects that bolster reliability, retains the risk of the investment on us instead of the ratepayer, while doing so in an environmentally responsible way, and taking our role as a community partner to heart.”
Last month, the project received a $1.1bn loan from the Texas Energy Fund (TxEF), announced by the state’s governor Greg Abbott.
This represents the largest TxEF funding made so far and accounts for more than 10% of the fund’s goal to add 10GW of new dispatchable generation capacity.
CPV said that the company and the project development team have collaborated with local and state officials over the past four years to meet regulatory requirements and engage with community stakeholders.
CPV low-carbon generation president Peter Podurgiel said: “Projects like CPV Basin Ranch will only succeed when they have the support of the people they serve. We’re honoured that your [local people] support will allow us to be part of this community for many, many years to come.”
“Organisations like the Monahans Kids Zone are integral in allowing communities to thrive. It’s our duty, as partners in the region, to do our part to help ensure their success.”
