Aggreko CEO Says Africa, Asia Will Increase `Stranded Gas' Generator Sales
Aggreko Plc, the world’s largest provider of mobile power-supplies, plans to boost its fleet of gas-power generators by two-thirds as more customers seek to tap waste gas as an alternative fuel to diesel.
Aggreko will add about 200 megawatts of natural gas-fueled generators in 2011 to its existing 300-megawatt capacity, Chief Executive Officer Rupert Soames said today. Though they are double the cost of diesel varieties, gas generators harness stranded gas that’s often disposed of by flaring.
“There are quite a lot of our customers in Africa, Asia, who have gas nearby, but it’s called stranded gas, it’s gas that they can’t really take to market,” Soames said.
Aggreko, which supplied generators for the soccer World Cup in South Africa, will boost spending on its fleet by 23 percent next year. Money will be channeled into cleaning up the emissions of its North American fleet, Soames said.
“For customers that can get hold of gas, gas is generally cheaper than diesel,” Soames said. “The other thing is, it’s cleaner fuel.”
The company, based in Glasgow, today said business levels in the fourth quarter were better than expected. It predicted full-year revenue will increase 20 percent to 1.22 billion pounds ($1.4 billion), with pretax profit up 25 percent to 305 million pounds. Shares of the company were little changed at 1,501 pence as of 9:49 a.m. local time.
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