UK Firm AMEC Plc Looks Poised to Benefit If Obama Pushes a ‘Cleaner’ Coal Agenda

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No matter how bad the U.S. economy gets in the coming months, President-elect Barack Obama is between a rock and a hard place when it comes to coal-fired power plants. If he shuts them down, he will exacerbate a forecasted nationwide power generation shortfall. If he keeps them running without requiring that they utilize expensive new emissions control equipment, he risks undercutting the green energy economy initiative he ballyhooed during the campaign.

Thus does it seem likely that the incoming Obama administration will push for “cleaner” coal power generation. If it does, a company many investors may have never heard of – AMEC Plc of Great Britain – could be in strong position to make a lot of money in the colonies.

Last month AMEC announced that Dominion Resources Inc.’s Virginia Power unit had awarded it a contract to provide essential emissions enhancements to the largest fossil-fueled power station in Virginia. “Projects like this highlight the growth we’re seeing in power generation and air quality control systems and the potential to expand our activities in this sector,” AMEC said, without putting a specific value on the deal.

Power engineering services is a major business for AMEC, which also provides design and consulting services to the oil and gas industry and the mining industry. The expected growth in demand for power-plant emissions-control equipment especially in the U.S. is a key reason why the company just forecast strong overall growth EBITA of 6.5% in 2008, rising to 8.5% in 2010. The company said its order book for its energy and power industry business is up 12% so far this year.

AMEC, which recently acquired a privately-held U.S. engineering firm in order to add to business opportunities in the New England area, reported in August a 37% increase in earnings per share from continuing operations on a 9% increase in revenue. At the time, the company also raised its dividend.



beyondgreen Says:
November 30th, 2008 at 2:47 pm

OPEC has us over a barrel literally. This past year the high cost of gas seriously damaged our economy and society as well. Everything, and I mean everything costs more now as a direct result of high fuel costs. From farming to manufacturing and shipping the costs were all directly passed on to us. Now that gas has come down a tad, have you seen the prices of groceries come down. NO! And, OPEC is planning more cuts in production to get prices back up. I just finished a new book by Jeff Wilson called The Manhattan Project of 2009 Energy Independence Now. It covers every aspect of our oil consumption ..some interesting things I didn’t realize is that we are using oil worldwide at the rate of 2X faster than new oil is being discovered. Electric cars would cost the equivalent of 60 cents a gallon to charge at home and that electricity could be generated by wind or solar.Check out what they are doing in CA with elec cars

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