Maximizing Investment Recovery on Power Plant Closures Gregg Epstein Perry Videx. LLC May 10, 2013 New Orleans, LA.

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Presentation transcript:

Maximizing Investment Recovery on Power Plant Closures Gregg Epstein Perry Videx. LLC May 10, 2013 New Orleans, LA

Revenue Streams Sale in place Sale for relocation Sale of systems Sale of components Auction Scrap Demo

Why Access the Secondary Market? Built to last Dollar savings Time savings Global Market Wide availability

Sale in Place Brayton Point, MA / Kincaid, IL / Elwood, IL Bartonville, IL / Canton, IL

Entire Site Sale for Relocation Unlikely for coal-based plants Routine in other industries Only 3 rd world

Sale of Components and Systems Air compressors Ash handling Centrifuges Coal Handling Coal pulverizing Diesel generators Railcar unloading Small cooling towers Smaller tanks (under 12)

Price Factors Age Size Condition Adaptability Maintenance Brand Accessibility Geography Compliance

Price Chart - Components Air compressors - $5,000 to $50,000 Ash handling - $10,000 to $40,000 Centrifuges - $50,000 to $150,000 Coal Handling - $10,000 to $40,000 Coal pulverizing - $75,000 to $100,000 Diesel generators - $20,000 to $200,000 Small cooling towers - $20,000 to $85,000 Smaller tanks - $5,000 to $50,000 Full retail, loaded to transport Cost of removal, commissions, marketing

Gas Sells – Coal/Steam Does Not PV gas turbine sales mw - $4.5 million US to Mexico 14.5 mw - $3.5 million Turkey to India 13.4 mw - $3 million Denmark to India 7.2 mw - $3 million US to Mexico 6.4 mw - $1.6 million US to Colombia 1 mw - $550,000 Netherlands to India PV steam turbine sales mw - $102,000 US to US

Auction Compressors Diesel generators Electrical/switchgear Labs Maintenance/shop Motor Control Centers Pumps Rolling stock Small transformers

Scrap of Non-Salable Material Condensers Copper wiring Dust collectors/ESPs Pipe Rail Small transformers Structural steel Transformers Turbines/Generators

Scrap Pricing 90% steel, 1000s of tons. Scrap steel $200/ton Scrap stainless - $950 - $1500/ton Scrap copper - $6700/ton Cost of harvest

Demolition Boilers Cooling towers Structures Stacks Scrap revenues

Where is the Value? Overseas Innovative sales techniques Direct sales Alternative uses Alternative industries Find the one buyer