HOUSTON, July 1, 2013 /PRNewswire/ -- Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") (NYSE: DRC) announced today that it received a project award from Apex Compressed Air Energy Storage, LLC ("Apex") for the supply of equipment to be used in a new 317 MW compressed air energy storage ("CAES") facility to be constructed near Tennessee Colony, Texas in the Electric Reliability Council of Texas ("ERCOT") market. The Apex Bethel Energy Center would be the first CAES facility to be built in the United States since the Power South facility in McIntosh Alabama, which was built in 1991 and also contains Dresser-Rand turbo machinery. The Dresser-Rand related contract is valued at approximately $200 million.
According to Vincent R. Volpe Jr, President and CEO of Dresser-Rand, "This project award is of strategic as well as financial significance to our Company.
First, it validates the view that the value of large energy storage in the form of CAES is a viable economic investment. As explained over the past several years, we have been working with numerous clients to support their research of this bulk storage option. This order from Apex, affirms the value proposition of CAES.
Secondly, we are pleased that we have been chosen by Apex on this important project, which we believe will lead to further CAES projects in the coming years. We believe this order represents the first step in the development of a compelling market opportunity.Dresser-Rand continues to expand outside of the Oil and Gas supply chain into the greater energy infrastructure market through participation and investment in the environmental solutions power space by supplying high speed rotating equipment and services solutions. We believe our evolution is an important differentiator from companies whose revenue streams depend principally on one or a few specific segments within energy infrastructure. Our participation in CAES further strengthens this approach, which is the result of a conscious strategic effort undertaken several years ago by the Company."