NextEra Energy Inc.
) operating wing Florida Power & Light ("FPL") Company
announced the successful conclusion of a string of operational
tests on the first natural gas-powered combustion turbine at its
Riviera Beach Next Generation Clean Energy Center.
The preliminary testing phase commenced in late Sep 2013 and
involved a range of assessments as well as running the combustion
turbine at 25 megawatts (MW) of electricity. The high-tech
Riviera Beach facility has three combustion turbines.
Development work at the facility is still underway and on
completion will have a generating capacity of up to 1,250 MW
which will adequately serve NextEra Energy's 250,000 customers by
the first half of 2014.
NextEra Energy is using the first combustion turbine to carry
out a series of steam pipe-cleaning activities to prepare the
facility's piping for full operation. At the moment, testing on
the second combustion turbine is proceeding with the third
turbine set for testing in November.
NextEra Energy spent over $1 billion for the cutting-edge
infrastructure of the Riviera Beach Center. The facility will
generate power using 33% less fuel per megawatt-hour and will
have lower emissions than the previous plant, demolished in
The Riviera Beach Center employs combined-cycle natural gas
technology which will contribute to substantial net savings for
NextEra Energy's customers. The facility's operational lifespan
is projected to be 30 years.
The project is a part of NextEra Energy's strategy to steadily
minimize its reliance on fuel imports. It has reduced its foreign
oil dependency by 98% and is gradually steering its investments
to more fuel-efficient power plants.
These modernization efforts are directed towards providing
almost 100% service reliability and offering attractive power
rates than its peers in Florida. This move will certainly lead to
customer retention as well as add more non-FPL customers. We note
that the Florida market is gaining traction owing to a decline in
housing inventories and an increase in construction
In early 2013, its Cape Canaveral Next Generation Clean Energy
Center came online and the company has already torn down its Port
Everglades plant to build a new center to be open in 2016.
FPL is also expanding its transmission network to bring
domestically sourced natural gas services to Florida by 2017. It
is collaborating with
Spectra Energy Corp.
) to build the Saba Trail Transmission line which will boost
NextEra Energy's gas-based infrastructure.
NextEra Energy's focus on strengthening its natural gas
operations will bode well for the company's future growth
objectives as the current pulse in the U.S. market is
increasingly in favor of clean energy.
Currently, the company carries a Zacks Rank #3 (Hold).
However, other well-placed operators include Zacks Ranked #2
We are reissuing this article to correct a mistake. The
original article, issued Wednesday, October 23, 2013,
erroneously mentioned FirstEnergy Corp. [FE] as being involved
with this development. It was not and is not; the original
article should no longer be relied upon.
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