Environmental Group Unit Wins A$12.7 Million Contract

Environmental Group Ltd’s (ASX: EGL) Baltec IES business unit has secured a major contract to deliver a gas turbine silencer and exhaust gas system to Engie Group in Australia.

The A$12.7 million contract is for the engineering, design, supply and installation of the two-stage system.

Baltec IES will undertake this work over the next 12 months with installation expected to be completed in April 2025.

Unique silencer design

Gas turbines are widely used to support the renewable energy sector by supplementing peak load energy requirements.

This requires the turbine to deal with the thermal dynamics of heating and cooling over thousands of cycles.

Baltec’s unique silencer design has been able to meet the latest applicable EPA noise requirements whilst optimising turbine performance.

Expertise in acoustic technology

The new project is exciting in that it is taking an existing base load power plant and adding bypass stack equipment to give the client more operating flexibility.

EGL CEO Jason Dixon said: “This project builds on Baltec IES’ expertise in the field of acoustic technology, including silencer design and noise measurements.”

Dixon anticipates further similar opportunities in future with clients looking to convert existing combined cycle power plants to peaking operation.

Year-to-date contract wins of ~$35M

Securing the Engie Group project brings the value of contracts won by Baltec IES year to date to ~$35M.

This positions the company for strong performance in the current and following financial year.

EGL had $7.7M cash on hand on 31 December 2023 plus a $5M undrawn working capital facility available to fund future growth.

 

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