PSEG Power has selected Black & Veatch to lead the development of its 540MW Sewaren 7 dual-fuel, combined-cycle power plant in New Jersey, US.
Black & Veatch will perform engineering, procurement and construction management (EpCM) services for the power plant, which is being built at PSEG’s Sewaren Generating Station site in Woodbridge, New Jersey, to deliver power to the PJM market by mid-2018.
PSEG Fossil president Rich Lopriore said: "Sewaren 7 represents an important investment by PSEG in New Jersey’s power landscape.
"Under PJM’s new capacity performance standards, it’s more important than ever to provide a high-level of reliability."
Black & Veatch energy business president Dean Oskvig said: "Given the demands of the PJM market, schedule and execution are critical to the success of this project.
"When completed, Sewaren 7 will serve as a highly efficient, reliable power source within PJM, the nation’s largest wholesale energy market."
Anticipated to cost more than $600m in 2016, the facility will include GE’s high-efficiency H-class combustion turbine and will offer greater resilience and flexibility through dual-fuel capability.
Dual-fuel capability enables the plant operator to generate power using ultra-low sulphur distillate fuel oil in the event of a gas supply shortfall.
Primarily built by the union labour, the plant is expected to generate 350 jobs during the two-year construction phase, including 28 full-time positions, once it becomes operational.
The power plant is scheduled to replace Sewaren units one, two, three and four, which will be decommissioned after providing energy to the region for nearly 70 years.
The project was finalised after clearing the PJM Reliability Pricing Model Base Residual Auction in August; a critical step in ensuring its ability to dispatch power in New Jersey and the broader PJM transmission area.