After the city issues a permit, work can begin on Stellar Energy’s takeover of the former GE Oil & Gas manufacturing plant in AllianceFlorida at Cecil Commerce Center.
The city is reviewing a permit application for Jacksonville-based Ladson Construction for site work and building modifications at a project cost of almost $1.14 million.
Jacksonville-based Stellar Energy is taking over the building at 12970 Normandy Blvd. in West Jacksonville. Property records show two buildings of 524,271 square feet and 8,400 square feet.
Stellar Energy confirmed in a news release issued Jan. 23 that it is expanding its manufacturing capacity in Jacksonville after a deal with the city as Project Orion.
The company said it plans to triple manufacturing capacity in 2024 and projects a fivefold increase in 2025, creating 250 jobs this year.
The release, issued by JAXUSA Partnership, said Stellar Energy plans to invest more than $28 million in the project, comprising $20 million in the building and more than $8 million in equipment.
The Jacksonville City Council unanimously approved the economic development deal in October for Stellar Energy, which was code-named Project Orion.
JAXUSA Partnership is the economic development division of JAX Chamber.
The project permit in review includes site, electrical, structural and concrete work; roll-up and bay doors; pavement; and a gate for truck access.
The news release said Stellar Energy’s Turbine Inlet Air Chilling systems for power and LNG producers, and Modular Cooling Systems for hyperscale technology industries, are in high demand as companies seek to operate more efficiently and sustainably.
Stellar Energy Executive Chairman Peter Gibson said the expansion will not only bring a $28 million “investment to the city but also create high-paying jobs for the local community. This is a big plus for everyone.”
A city project summary says Project Orion will lease the building and generate an annual payroll of more than $12.5 million excluding benefits. At a minimum of 250 new jobs, the annual pay would average $50,000.
Stellar Energy says it is an industry leader in the design, construction, fabrication, installation, operations and maintenance and servicing of a range of energy systems that can enhance energy performance.
While the release did not identify the location, Jacksonville real estate market reports showed that Stellar Energy leased the former GE Oil & Gas and Baker Hughes Co. manufacturing facility.
General Electric Co. opened the plant in 2015 and merged its oil and gas division with Baker Hughes in 2017. GE retained a majority stake in Baker Hughes after the merger but it sold off its stake beginning in 2020.
Terraza 13 LLC, part of Realty Income Corp., owns the property.
On Oct. 24, 2023, Jacksonville City Council unanimously approved a Recapture Enhanced Value Grant up to $1.5 million for the unidentified Project Orion.
According to Resolution 2023-0715, the code-named company is an established manufacturer of mechanical equipment in Jacksonville and “operates a state of the art manufacturing operation which designs, engineers and delivers modular equipment to aid power suppliers.”
The company seeks to continue operations in its current location and increase production of its product at a new location.
Completion of improvements will be no later than Dec. 31, 2027.
The expansion would retain 175 jobs and add 250 jobs to its current operation with an additional annual payroll of more than $12.5 million, excluding benefits, by Dec. 31, 2028, under the terms of the REV grant agreement.
Stellar Energy owns and operates a manufacturing facility at 989 Imeson Park Blvd. in North Jacksonville. Property records show Star Fabricators LLC, part of Stellar Energy, owns the almost 19.7-acre site.
Star Fabricators LLC bought the property in 2003 and developed two buildings totaling almost 96,000 square feet in 2004, property records show.
Stellar Energy says it uses 115,000 square feet of manufacturing space and that the facility features the latest technology, equipment and tools, “enabling us to completely fabricate entire systems, modular systems, partial structures, piping and skids.”
Stellar Energy also is relocating its headquarters within Jacksonville to 1776 American Heritage Life Drive in South Jacksonville. It has been based at 3015 Hartley Road in the Mandarin area of Jacksonville.