Gemma Power Systems, the U.S.-based engineering and construction contractor and wholly owned subsidiary of Argan Inc., has received the Notice to Proceed (NTP) from Sandow Lakes Energy Company, LLC (SLEC) for the execution of a major Engineering, Procurement, and Construction (EPC) contract. The project involves the delivery of a new 1.2 GW ultra-efficient combined cycle natural gas power plant located in Lee County, Texas.
About the Lee County Power Plant
The plant, to be developed and owned by a subsidiary of SLEC, is designed to serve the Electric Reliability Council of Texas (ERCOT) market. Once operational, it will contribute 1,200 MW of generation capacity, bolstering regional grid stability and supporting both residential and industrial loads.
The facility will incorporate two Siemens Energy SGT6-9000HL gas turbines, recognized globally for their high efficiency, robust output, and advanced flexibility. These turbines are hydrogen-ready with only minor equipment modifications, aligning the project with longer-term decarbonization objectives without compromising short-term reliability. This model is the same that will be another major power plant project in Saudi Arabia – Rumah 2 and Nairyah 2.
Located adjacent to a 24-inch tap on the Matterhorn Natural Gas Pipeline, the site ensures consistent fuel supply while maximizing logistical efficiency during construction and operation (more about the project on the video below – credit: slectx.com)
The NTP marks a significant milestone, formally allowing Gemma to commence full-scale execution of the project. This phase transition typically follows project development and commercial agreements, serving as a contractual green light for EPC contractors to mobilize and begin construction-related activities.
Charles E. Collins IV, CEO of Gemma, stated:
“We’re thrilled to move forward with SLEC on this major power project. Their strong development efforts set the stage for success, and we look forward to working together. Expanding power infrastructure is essential to meeting rising energy demands, and our team is dedicated to delivering exceptional results.”
A Site with Industrial Legacy
The Sandow Lakes property carries a rich industrial history, having supported operations from 1950 until 2018. With much of the existing infrastructure still in place, the new plant marks an initial step in a broader redevelopment strategy for the site. SLEC’s long-term vision includes reactivating the economic potential of this once-thriving industrial base.
The facility is poised to deliver reliable, flexible, and lower-emission energy from 2029 while contributing meaningfully to local economic development.
A Step Forward in Efficient, Lower-Carbon Generation
SLEC’s development represents a growing trend in the U.S. energy sector—using combined-cycle technology to increase efficiency and lower emissions. Combined-cycle systems utilize both gas and steam turbines. Heat recovery steam generators (HRSGs) capture exhaust heat from the gas turbines to power steam turbines, thereby maximizing the energy output from each unit of natural gas consumed.
This configuration allows the plant to achieve significantly greater efficiency than simple cycle facilities and contributes to lower greenhouse gas emissions per MWh of electricity generated. The choice of natural gas as the primary fuel also supports the transition toward cleaner energy while ensuring dispatchable capacity remains available during peak demand.
Economic and Community Impact
The project is also expected to deliver positive economic ripple effects for the surrounding area. SLEC has highlighted the anticipated creation of hundreds of construction-phase jobs, with additional opportunities available during the operational phase. The presence of the plant is expected to stimulate broader economic revitalization in Lee County, particularly as it brings renewed industrial activity to the former Sandow Lakes industrial corridor.
In a statement, SLEC emphasized its commitment to the region’s growth:
“This state-of-the-art facility represents a significant milestone in our commitment to providing reliable, efficient, and environmentally responsible energy solutions to meet the growing demands of our communities.”
