2 Plants to Be Built for $26.6 Million : Energy Factors, N.J. Firm Sign Accord
Completing a summer’s worth of activity that could significantly boost its revenue base, Energy Factors on Thursday said it had entered into an agreement to build two cogeneration plants worth $26.6 million for Schering Corp. in New Jersey.
The plants will be built, owned and operated by Energy Factors, which will sell the generated steam and electricity to Schering Corp., which is the U.S. pharmaceutical division of Schering-Plough, an international drug and personal-care products manufacturer.
Any generated energy not bought by Schering will be sold to various New Jersey utilities, according to Rick Kay, Energy Factors vice president of finance.
The agreement--in the form of letters of intent--calls for Energy Factors to build a $21.6-million, 27-megawatt cogeneration plant at Schering’s Kenilworth, N.J., plant and a $5-million, five-megawatt plant at the company’s Union, N.J., facility.
The plants are expected to be on-line by mid-1987 and could add as much as $20 million to Energy Factors’ annual revenue stream, Kay said.
This summer, Energy Factors agreed to build a $26.5-million cogeneration plant north of Sacramento and, last week, announced it would build a $5-million facility at the Methodist Hospital in Brooklyn, N.Y.
Those two projects, when completed, will add $14.5 million to the cogeneration company’s annual revenues, said Kay.
For the six months ended June 30, Energy Factors reported earnings of $2.6 million on revenues of $14 million, up 37% and 18%, respectively. The company, an independent spinoff of San Diego Gas & Electric that is headed by former SDG&E; chairman Robert Morris, operates cogeneration plants with a total power-generation capacity of 72 megawatts and 800,000 pounds of steam per hour.
Energy Factors also owns facilities that chill water for office building air conditioners.