MADRID – Spain’s Iberdrola said on Monday it signed a contract with
petrochemical company Dynasol to build a 56 MW cogeneration power plant in the
northeastern Mexican state of Tamaulipas.
The cogeneration plant will
cost 1.3 billion pesos ($84 million), Iberdrola said in a
Cogeneration is a process that simultaneously produces both
electricity and heat from one fuel source, such as natural gas, making use of
heat that would otherwise be lost.
The deal is part of an expansion
strategy in Mexico, where plans call for investing up to 78 billion pesos ($5
billion) in generation projects over the next few years, the Spanish company
Iberdrola, Spain’s largest power company, operates in Britain, the
United States, Mexico and Brazil.