Panda Sherman Power Project

The Panda Sherman Power Project is a clean natural gas-fueled, 758-megawatt combined-cycle generating facility. The plant can supply the power needs of up to 750,000 homes and should infuse up to $1.7 billion into the North Texas economy.

Panda Sherman Power Project

Natural Gas Generation Facility Facts

Location: Progress Industrial Park Sherman, Texas
Site Size: 200 acres
Size: 758 megawatts
Technology: combined cycle
Fuel: Clean, natural gas
Air Permit Received: Feb. 4, 2010
Construction Start: July 2012
Construction Time: Approximately 24 months
Commercial Operation: July 2014

Natural Gas Facility Highlights

The Panda Sherman Generating Station will:

  • Contribute up to $1.7 billion to the area’s economy during construction and the plant’s first ten years of operation
  • Create 700-800 construction jobs; 27 direct jobs to operate the plant and 45 indirect jobs to support the plant
  • Utilize the latest, most advanced emissions-control technology, making it one of the cleanest natural gas-fueled power plants in the United States
  • Employ “Quick start” turbines which can achieve 50% power production in 10 minutes and full baseload capacity in 30 minutes
  • Support the development of additional renewable generation by closing the generating gap caused when renewable energy suddenly drops offline
  • Provide higher power output during high temperature conditions, making the plant ideal for Texas’ hot summers

Market Need

  • ERCOT has forecast reserve margins declining to 10.5% in 2015 and 8.5% in 2016 — below the 13.75% reserve requirement necessary for grid reliability
  • The Panda Sherman project has been strategically sited in an area that will serve one of the fastest growing regions of the United States. According to the U.S. Census Bureau’s data as of Sept. 2012, eight of the 15 fastest growing cities in the United States are located in Texas. Of these cities, five are located in North Texas. The North Texas Council of Governments has projected that the North Texas area will swell from the current population of 6.6 million to more than 9 million people by 2030. This equates to an additional:
    • 930,000 homes
    • 640 new schools
    • 14 shopping malls
    • 40 new hospitals
    • 340 new neighborhood retail centers
    • 630,00 new multi-family units; and
    • 56 million square feet of new office space.
  • Texas large amount of wind generation requires natural gas-fueled
    back-up generation

Power Plant Financing

Equity: Panda Power Funds and institutional co-investors
Debt: Lead arrangers — Goldman Sachs and Credit Suisse; Documentation agent —
Ares Capital

Construction and Technology Providers

Siemens Energy Inc — one of the world’s largest suppliers of turbine technology — will provide the power island package including the natural gas turbines, steam turbine and waste heat recovery boilers

Bechtel — one of the world’s largest construction and engineering companies — will be responsible for the engineering and procurement for the balance of the plant and the installation, construction and commissioning of the facility.

Learn more about relationship between Panda, Bechtel and Siemens in this video produced by Bechtel for their Project of the Year competition

Contact us if you are interested in being a vendor or an employee for the Sherman power plant project

Sherman, TX logo

About Sherman, Texas

The City of Sherman, Texas, is located at the crossroads of U.S. 75 and U.S. 82 in North Texas. The county seat of Grayson County, Sherman is a community of 36,000 residents and home to several Fortune 100 industries in addition to Austin College, a vibrant arts community, and abundant recreational opportunities. Excellent schools, beautiful scenery, and a variety of shopping, restaurants and hotels add to the community.

Sherman is 60 miles north of Dallas—close enough to the Dallas-Fort Worth Metroplex to access the urban amenities—yet it still retains an unhurried and friendly atmosphere of smaller communities. Sherman also has a richly diverse history and is only 10 miles south of Lake Texoma, one of the largest reservoirs in the state of Texas and well-known for its champion bass fishing, sailing, camping and hiking.
Used with permission from the Department of Tourism

Local Support

“Panda representatives have been actively engaged with community leaders since the beginning of the site selection process. They've done a good job answering questions and building support for this project. Panda has also been accessible and has proactively communicated with City Hall throughout all phases of this exciting development. Panda's actions have shown us that they will be a good corporate citizen of our community.” -- City of Sherman Mayor Bill Magers

“This power plant will have a significant impact on the area's economy for years to come. It will expand the tax base, enlarge payrolls and drive revenues for contractors, suppliers, engineering firms, hotels, restaurants, retailers and a host of other businesses. The plant will create an estimated 700-800 construction jobs, 27 direct jobs to run the facility and 45 indirect jobs to support it. This is good for the city of Sherman.” -- Scott Connell, president, SEDCO