McDermott completes $6bn CB&I acquisition, eyes Middle East expansion with Saudi Aramco
American offshore engineering giant McDermott has completed the acquisition of Chicago Bridge & Iron Company (CB&I), a move which has created a fully integrated provider of tech, engineering and construction services for energy clients.
The deal is said to be worth $6bn including debt, will open up business opportunities in key markets such as the US and Middle East.
McDermott now has a workforce of more than 40,000, including 5,000 engineers, serving markets in 54 countries.
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David Dickson, President and Chief Executive Officer, commented: “The combination of McDermott and CB&I brings together a global upstream and subsea engineering, procurement and construction company with an established downstream provider of industry-leading petrochemical, refining, power, gasification and gas processing technologies and solutions – creating a company that spans the entire value chain from concept to commissioning.
“Together, we have the integrated technology, engineering expertise, construction experience and global reach to design and build the energy infrastructure of the future.”
According to Reuters, McDermott will expand its work in Saudi Arabia after Dickson met with Saudi Aramco executives.
While current work with Aramco is focussed on offshore, upstream projects, the addition of CB&I expertise opens up the possibility of further business.
The acquisition will also lead to a reorganisation of McDermott by territory – North, Central and South America; Europe, Africa, Russia ad Caspian; Middle East and North Africa; and Asia Pacific. Each of these areas will be supported by executive presence.
At present, McDermott’s innovation portfolio includes more than 100 licensed proprietary technologies, bolstered by more than 3,500 patents and patent applications.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.