July 30, 2008

Gemma Receives EPC Contract From CPV Sentinel for California Peaking Plants

Power generation infrastructure developer Argan has announced that its wholly owned subsidiary, Gemma Power Systems, has signed a $210 million engineering, procurement and construction contract and received a limited notice to proceed from CPV Sentinel to design and build eight simple cycle peaking plants in southern California.

CPV Sentinel has a power purchase agreement with Southern California Edison. The project will be completed in two phases. The first phase, which includes the construction of five simple cycle peaking units, is expected to be completed in the summer of 2010.

The second phase of the project, comprising the construction of three units, is expected to finish in April 2011.

Rainer Bosselmann, chairman and CEO of Argan, said: "Gemma has a great deal of experience in the project management and construction of simple cycle peaking plants and has completed numerous facilities of this type in locations across the US. We look forward to working with CPV Sentinel toward the successful, on-time completion of this project."