Energy Factors on Thursday signed an agreement with an Oxnard company to build a $45-million cogeneration plant--the largest project in the San Diego-based company’s two-year history.
The plant will be built, owned and operated by Energy Factors, which will sell the generated steam, electricity and refrigerated ammonia to Oxnard Frozen Foods, which processes lima beans, broccoli, and spinach for major food packers and distributors.
Any electricity not bought by Oxnard Frozen Foods will be sold to Southern California Edison Co., according to Rick Kay, Energy Factors vice president of finance.
The finished product will provide up to 49 megawatts of electric power capacity (enough for about 49,000 homes), 10 million ton-hours of refrigerated ammonia and more than 30,000 pounds of steam per hour.
In addition to electricity, the facility will also generate about $20 million in additional annual revenues for Energy Factors, Kay said.
The agreement comes on the heels of Energy Factors’ announcement two weeks ago that it would build two cogeneration plants worth $26.6 million for Schering Corp. in New Jersey.
That contract could add as much as $20 million to the company’s annual revenues.
Teamed with contracts worth about $31.5 million that were announced in the past three months, Energy Factors’ revenues could be boosted by about $54.5 million by 1987, Kay said.
The company--which reported earnings of $2.6 million on revenues of $14 million, up 37% and 18% respectively, for the six months ended June 30--operates cogeneration plants with a total power-generation capacity of 72 megawatts and 800,000 pounds of steam per hour. It also owns plants that chill water for office building air conditioners.