Quanta Services Selected for the SunZia Transmission and SunZia Wind Projects
Demonstrates the Power of Quanta's Industry-Leading and Comprehensive High-Voltage Electric Transmission and Renewable Generation Solutions
Projects are Additive to Quanta's Multi-Year Visibility and Growth Opportunity
The SunZia Wind and SunZia Transmission Projects Are Designed to Produce and Transport Wind Power to Consumers in the Western United States and Represent the Largest Renewable Energy Project in United States History
HOUSTON, May 4, 2023 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) announced today that it has been selected by Pattern Energy Group LP (Pattern Energy) to provide comprehensive infrastructure solutions for the SunZia Transmission and SunZia Wind projects, which together represent the largest clean energy infrastructure project in United States history. Demonstrating the Power of One and its substantial scope and scale, Quanta will leverage the capabilities of multiple operating companies to execute these projects for Pattern Energy. Once completed, these projects will generate and transmit a significant amount of abundant wind energy from New Mexico to consumers in the western United States.
"Quanta's selection for these projects builds on a long-standing customer relationship of our industry-leading renewable generation solutions company, Blattner Company, and we appreciate the confidence that Pattern Energy has placed in Quanta to execute on these critical and historic renewable energy projects. We believe these awards validate the power of our combined high-voltage transmission and renewable generation solutions and demonstrate the value of our collaborative approach to providing comprehensive energy transition infrastructure solutions," said Duke Austin, Quanta's President and Chief Executive Officer. "North America's energy transition to a reduced-carbon economy is accelerating but remains in the early stages of a multi-decade process that will require significant investment in power grid and renewable infrastructure. We believe our self-perform capabilities and vertically integrated solutions allow us to provide greater cost, schedule and quality certainty to our clients, which also benefits consumers, and that the comprehensive approach we are taking on the SunZia projects can serve as a model for the renewable and utility industries going forward."
"The SunZia project is changing the landscape for renewable energy, and we need to ensure that we have the best team in place to help bring it to life. Partnering with Quanta Services, an industry leader in the electric power and renewable infrastructure industries, to help build the SunZia projects demonstrates our commitment to delivering a world-class clean energy project that New Mexico, Arizona and the entire country can be proud of," said Hunter Armistead, Chief Executive Officer of Pattern Energy. "Along with enough clean power for 3 million American consumers, SunZia is designed to bring a far-reaching economic boost to the region, including the expected creation of over 2,000 new jobs and an expected $20.5 billion in economic impact."
The SunZia Transmission project is designed to transmit approximately 3,000 megawatts of electricity generated by the SunZia Wind project on an approximately 550-mile, primarily bi-directional, +/-525 kV high-voltage direct current (HVDC) transmission line from central New Mexico to south-central Arizona, facilitating the transportation of renewable energy to the western United States. Quanta's scope of work also includes the construction of two HVDC Voltage Sourced Converter Stations (one in Arizona and one in New Mexico) and two AC Choppers in New Mexico, to be supplied by Hitachi Energy, a global technology leader and a leading provider of HVDC technology in North America. Preconstruction activities have begun, with construction expected to begin in the fourth quarter of 2023 and project completion expected to occur by the end of 2025.
Quanta expects to include the estimated revenues from the SunZia Transmission project in its Renewable Energy Infrastructure Solutions segment remaining performance obligations and backlog in the second quarter of 2023.
Located in Lincoln, Torrance and San Miguel Counties in New Mexico, the SunZia Wind project is a 3,500-megawatt wind generation facility designed to generate enough electricity to power the needs of more than 3 million consumers. Blattner Company was selected to provide comprehensive solutions for the wind farm facility and associated switchyard, which includes the installation of more than 900 turbines, ten substations, seven operations and maintenance facilities and a switchyard. Preconstruction activities have begun, with full construction expected to begin in the fourth quarter of 2023 and project completion expected by the end of 2025. Blattner's scope of work and execution plan for the SunZia Wind project leverages its prior success with building Pattern Energy's Western Spirit Wind project in New Mexico, which was completed in 2021 and, at that time, was the largest renewable energy project in the United States.
Quanta is performing various preconstruction activities for the SunZia Wind project under a limited notice to proceed contract and expects to include the estimated revenues for the project's full scope of work in its Renewable Energy Infrastructure Solutions segment remaining performance obligations and backlog by the third quarter of 2023.
About Quanta Services
Quanta is an industry leader in providing specialized infrastructure solutions to the utility, renewable energy, communications, pipeline and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com.
About Pattern Energy
Pattern Energy is one of the world's largest privately-owned developers and operators of wind, solar, transmission, and energy storage projects. Its operational portfolio includes 35 renewable energy facilities that use proven, best-in-class technology with an operating capacity of nearly 6,000 MW in the United States, Canada, Japan, and Mexico. Pattern Energy is guided by a long-term commitment to serve customers, protect the environment, and strengthen communities. For more information, visit patternenergy.com.
Cautionary Statement About Forward-Looking Statements and Information
This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to expectations regarding Quanta's business or financial outlook; expectations regarding opportunities, technological developments, competitive positioning, future economic and regulatory conditions and other trends in particular markets or industries, including with respect to Quanta's increased operations in the renewable energy market and the transition to a reduced-carbon economy; expectations regarding Quanta's plans and strategies; the expected value of the projects or contracts, as well as the expected timing, scope, services, term or results of the projects; the development of and opportunities with respect to future projects, including renewable energy projects and other projects designed to support transition to a reduced-carbon economy; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance; rather they involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control and reflect management's beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied, or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties including, among others, market, industry, economic, financial or political conditions that are outside of the control of Quanta; trends and growth opportunities in relevant markets, including our ability to obtain future project awards; delays, deferrals, reductions in scope or cancellations of the projects as a result of, among other things, supply chain disruptions and other logistical challenges, weather, regulatory or permitting issues, environmental processes, project performance issues, claimed force majeure events, protests or other political activity, legal challenges, inflationary pressure, reductions or eliminations in governmental funding, or customer capital constraints; inaccurate estimates of project costs or inability to meet project schedule requirements or achieve guaranteed performance or quality standards for a project; unavailability of, or increased prices for, materials, equipment and consumables used in Quanta's or its customers' businesses and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended Dec. 31, 2022, and any other documents that Quanta files with the Securities and Exchange Commission (SEC). For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through the company's website at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release.
Investors - Kip Rupp, CFA, IRC
Media – Liz James
Quanta Services, Inc.
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SOURCE Quanta Services, Inc.
Released May 4, 2023