) announced last week that it won a marine contract worth $23
million in third quarter. ABB will provide waste heat recovery
systems, each powered by a power turbine generator (PTG), for 14
new container vessels. Following the news, the shares of ABB rose
0.4% on Nov 18.
Installing the waste heat recovery system will increase the
power output of the container vessels by up to 4%. The deployment
of waste heat recovery system (WHRS) onboard ships is becoming a
viable mean of reducing fuel costs. In marine propulsion plants,
more than 50% of the energy from fuel is lost to heat when
converted to mechanical work by the main engine.
Therefore, by supporting the ship's main propulsion plant with
a waste heat recovery solution, it is believed that up to 4% of
the lost fuel energy can be recovered and converted into
electricity. The WHRS system is energy efficient and reduces CO2
emissions in relation to the engine's mechanical power
Per the contract, ABB is required to supply power turbines
with control valves, alternators, reduction gears and dynamic
compensators. The contract also requires ABB to provide two
newest generation turbochargers. The electrical output of the
system is 1.65 megawatt (MW).
Of the 14 ships, seven will be built at the Dalian
Shipbuilding Industry Co. Ltd., (DSIC), while the other seven
vessels will be constructed at New Times Shipbuilding Co. Ltd.,
for China International Marine Containers Group Co. and
Mediterranean Shipping Co. S.A (MSC). These container vessels are
expected to be delivered in 2015 and 2016.
ABB has a Zacks Rank #3 (Hold). Other companies in the
industry that look promising at the moment include
Jacobs Engineering Group Inc.
Quanta Services Inc
). VSE Corp has a Zacks Rank #1 (Strong Buy), while Jacobs
Engineering and Quanta Services both have a Zacks Rank #2
ABB LTD-ADR (ABB): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
VSE CORP (VSEC): Free Stock Analysis Report
To read this article on Zacks.com click here.