Case Study: Valuation of Unused CCGT Equipment for Large-Scale Energy Development
Location: Europe → USA (planned deployment)
Scope: Remote appraisal and market valuation of unused SGT-800 combined cycle gas turbine equipment package
Date: August 2025
Overview
In 2025, CESS was engaged to provide an independent market valuation of an unused SGT-800 combined cycle gas turbine (CCGT) equipment package. The assets, originally procured for a project that did not proceed, were under consideration for redeployment in an $11 billion mega-project focused on energy and AI infrastructure in North America.
The subject equipment included six 52 MW Siemens SGT-800 gas turbines, six HRSGs, one Siemens steam turbine, and a full scope of mechanical and electrical auxiliaries, all preserved in OEM storage facilities.
Scope and Timeline
The client required a fast, defensible valuation to support internal review and assess whether unused CCGT equipment could be viably financed into a planned large-scale infrastructure initiative. A one-week window was available to reach a critical internal funding decision that would determine the project’s progression.
Drawing on its expertise in comparable equipment and resale markets, CESS completed the appraisal within five days, delivering a credible and market-aligned report to inform a time-sensitive investment decision.
The valuation played a key role in enabling that decision within the required timeframe and resulted in a $350 million financing package comprising both equity and senior debt facilities.
Valuation Scope and Methodology
The valuation was performed on an equipment-only, resale-for-relocation basis. The approach included:
- Remote technical appraisal based on OEM documentation and component-level scope
- Review of market demand and benchmarks for both combined-cycle and simple-cycle reuse
- Analysis of logistical considerations, including dismantling, transport, and preservation
- Segregated valuation estimates for the full CCGT configuration and individual gas turbine packages
- Commentary on expected value trajectories if the equipment were to be installed and operated prior to resale
Separate values were provided for Fair Market Value (FMV), Orderly Liquidation Value (OLV), Net Orderly Liquidation Value (NOLV), and Forced Liquidation Value (FLV).
Market Context
The assets’ value was supported by constrained OEM lead times (three years quoted for new production), strong buyer appetite for immediately available equipment, and the rarity of unused CCGT packages of this scale. The modular design and bypass-equipped gas turbines further enhanced resale flexibility.
However, relocation of a full CCGT package remains a complex proposition. The market for full-plant redeployment is narrow, with limited buyers able to absorb the high cost and engineering burden of disassembly and reinstallation.
Outcome
- Appraisal delivered within five days, enabling client to meet project deadline
- Evidence-based valuation informed internal funding decision
- Clear view of comparative value paths: full plant vs modular resale
- Successful close of $350 million financing package
Why It Matters
This project highlights CESS’s ability to deliver rapid, market-aligned valuations for unused generation assets—particularly in scenarios where timing is critical to investment outcomes. By combining technical expertise, global buyer insights, and practical redeployment knowledge, CESS helps clients make confident decisions even under pressure.