Gemma Renewable Power to Proceed on $50 Million Wind Farm Contract

Argan has announced that its wholly owned subsidiary Gemma Power Systems, through its joint venture entity Gemma Renewable Power, has received an initial limited notice to proceed from Grand Ridge II for an approximately $50 million contract to design and build the expansion of a wind farm in LaSalle County, Illinois.

The Grand Ridge wind farm is expected to consist of up to 166 wind turbines and Gemma Renewable Power will provide design and construction of roads, foundations and electrical collection systems in addition to erecting towers, turbines and blades.

Gemma Renewable Power expects to receive the final notice to proceed shortly, subject to negotiation of the balance of plant contract. The project is anticipated to be completed in 2009.

Rainer Bosselmann, chairman and CEO of Argan, said: “We are very pleased to receive approval to move ahead on this important alternative energy project. Gemma Renewable Power was formed to access the tremendous opportunities that exist in the renewable energy sector and we are confident that Gemma’s project management and construction capabilities will contribute to the success of this project.”