Quanta Services, Inc. (stock ticker: PWR) provides infrastructure services for electric power, pipeline, industrial and communications industries. Headquartered in Houston, Texas, they serve customers in the US, Canada, Australia, and several other countries.
PWR's Role in Drawdown
Within the electric and gas utility, communications, pipeline and energy industries, Quanta Services provides engineering, construction, and repair and maintenance of infrastructure, such as electric power transmission and distribution networks, substation facilities, communications and cable multi-system operator networks.
Their work in electric power infrastructure (p. 3) includes the design, engineering and construction of electric power transmission and distribution infrastructure and substation facilities to support utility customers’ effort to ensure the safety and reliability of the power grid and integrate renewable generation and the growing trend toward the electrification of transportation and other industries. They also work on the installation of smart grid technologies on electric power networks, engineering and construction of micro-grids, battery storage and solar generation facilities.
As part of their work on the electrical grid, an operating company owned by Quanta is providing engineering, procurement and construction solutions for the Wataynikaneyap Transmission Project (p. 60) in Northwestern Ontario, Canada, starting in September 2019. Once completed, this project will consist of 990 miles of transmission and distribution infrastructure and 22 substations.
Beyond this project, Quanta is working (p. 62-63) on a 100+ MW solar facility in Texas, a 409 MW-capacity solar-powered battery storage center, installing electric vehicle charging stations across North America, and upgrading transmission and distribution infrastructure in various locations.
All told, their electric power infrastructure segment accounts for ~70% of Quanta’s total revenue.
PWR: What We Like
There are several things we like about Quanta. One is that they’ve taken a few initiatives (pp. 66-67) to improve the environmental sustainability of their operations. For example,
They recycled over 1,300 pounds of electronics in 2020
More importantly, they’re recycling electrical infrastructure equipment - old utility poles and lines, scrap pipe, etc.
They installed a 187 KW solar system at their office in Napa, California, in 2015, which has since eliminated 229 tons of CO2 from that location
Their Michigan operating company diverted more than 25,000 tons of construction waste from landfills
In the area of grid resiliency, Quantana is doing important work in an area that’s very vulnerable to the effects of climate change. Along with two other companies, Quanta created a joint venture named Luma Energy in 2020, which aims (p. 19) to provide a resilient and clean power grid to Puerto Rico by:
Modernizing the grid to meet Puerto Rico’s goal of generating 100% of its electricity from renewable sources by 2050
Building a grid that’s strong, resilient, and able to withstand unpredictable catastrophic events like hurricanes and earthquakes
Upgrading the grid to facilitate efficient power delivery and reduce electricity line loss