Trillium CNG, a business wing of diversified energy holding
Integrys Energy Group
), entered into a joint venture with Chicago based integrated
transportation company, AMP Americas, to build a network of
compressed natural gas ("CNG") stations across the US. This will be
done through the joint venture company AMP Trillium.
AMP Trillium will initially try to rope in the long distance
trucking fleets and hence the first CNG stations will be
commissioned along the I-65 and I-75 truck corridors. CNG and
renewable CNG will reduce the carbon footprint thereby rendering
environmentally beneficial service.
In addition, modern technology based equipment will enable fast
fueling of the trucks resulting in efficient transportation
services. The first station is expected to come online by the
second half of 2012.
The combined project will substantially add to Integrys' vast
energy delivery business and strengthen Trillium CNG's profile in
the alternative fuel industry. In addition, Integrys'
transportation cost burden resulting from rise in fuel prices will
be mitigated with the placing of cost-effective CNG units. With
increasing focus on use of clean emission based products in the US
economy, demand for CNG is expected to surge which will boost the
company's sales in the coming years.
At the inception of the second quarter, Integrys inked a deal with
Golden Eagle Distributors to bring two compressed natural gas
fueling stations in the state of Arizona. The high pressured
storages will enable trucks to fuel at a much faster rate.
The company's closest competitor
Wisconsin Energy Corporation
) is also solidifying its position in the renewable market with its
construction of a 50-megawatt biomass plant in Northern Wisconsin.
The company's management expects electricity delivered from
renewable sources to constitute 10% in 2015, up from 5% in 2010.
Integrys' pro forma earnings guidance for 2012 is estimated to be
in the band of $3.35 - $3.55 per share. The company evaluates GAAP
earnings in 2012 to be in the range of $3.38 - $3.58 per share.
The Zacks Consensus Estimates for the second quarter and full year
2012 are currently pegged at 38 cents per share and $3.43 per
Based in Illinois, Chicago, the company provides products and
services, in both regulated and non-regulated energy markets,
through its subsidiaries. In addition, the company has a 34% equity
ownership interest in American Transmission Company LLC (ATC), an
electric transmission company operating in Wisconsin, Michigan,
Minnesota, and Illinois.
INTEGRYS ENERGY (TEG): Free Stock Analysis
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