After its highly publicised work decommissioning the Chernobyl nuclear power plant (see video below) Aconex enterprise partner Bechtel has just won significant government contracts to decommission all remaining nuclear power plants in Germany and Sweden (reported here.).
The projects will be undertaken as a joint venture with GE Hitachi Nuclear Energy.
Both countries are in the process of decommissioning all of their remaining nuclear power plants. Germany is in the process of shutting down 8 plants while Sweden has 10 to decommission.
The value is significant. For example, the decommissioning of the San Onofre power plant in California is valued at US$4.4bn. San Onofre is an AECOM project.
Bechtel (and AECOM) has a dynamic, user based enterprise agreement with Aconex which means that new Bechtel projects add to Aconex’s revenue stream.
A very conservative estimate for the entire project (@US$1bn per plant) would be US$18bn for Bechtel.
This is a very significant development for Bechtel enterprise partner, Aconex. It also demonstrates that significant infrastructure work continues to be rolled out in Europe.
The Bechtel enterprise agreement reads:
SAN FRANCISCO, California, June 25, 2015 – Aconex Limited (ASX: ACX), provider of a leading cloud collaboration platform for the global construction industry, today announced that it has signed an enterprise agreement with Bechtel, one of the world’s largest engineering, procurement and construction (EPC) firms.
The three-year agreement will standardize the use of Aconex across all Bechtel business units globally in a phased implementation.
Under the agreement, new Bechtel projects will be implemented on the Aconex platform as part of a multi-year plan to replace Bechtel’s internal document and record management system with project-wide collaboration.
The terms of the agreement are user-based, providing flexibility for Bechtel to add an unlimited number of platform users to its projects over time.
------------------------------------------------------------------------------------------------------------- This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.
