Mexican oil company Pemex has signed a memorandum of understanding (MoU) with Spanish company Abengoa and Italian energy and gas industry operator Enel to develop a 517MW cogeneration power plant in Mexico.
The project is estimated to cost $950m.
The power plant will be located at the Pemex’s subisidiary Pemex Refinación’s Dovalí Jaime refinery, close to Salina Cruz (Oaxaca).
Pemex will be supplied with electricity and steam from the 517MW cogeneration power plant. The company plans to sell the excess power in the market.
Cogeneration process will produce electricity and thermal power simultaneously from a single fuel source like natural gas, which will restore the heat.
The process will improve the thermal efficiency and result in higher heat values and low amount of carbon dioxide emissions.
According to Abengoa, the objective of the project is to help the Mexican Government to meet its commitment to reduce greenhouse gas emissions by up to 50 % by 2050.
The construction, operation and maintenance of the plant is also expected to generate around 1,500 new jobs, as well as create large amount of indirect employment in the region.
The new project is likely to help the Enel Group broaden its presence through the development of conventional generation projects in Mexico.