French engineering group Alstom said it had won a contract to build Sembcorp’s 800 megawatt cogeneration plant in southwest of capital Singapore.
The contract worth 500 million euros ($684.75 million) will involve the two-phase construction and maintenance of Sembcorp’s second gas-fired combined cycle cogeneration plant in Jurong Island.
Cogeneration plants combine heat and electricity generation in a single machine. It recycles waste energy, which would otherwise escape into the air, to generate power.
Under the contract, Alstom will construct the entire cogeneration plant and supply the GT26 gas turbine, steam turbine, turbo generator, heat recovery steam generator, and AlSPA Series integrated control system.
The construction of the first phase with 400-MW capacity will begin in the second half of 2011 and is expected to be online after two years.
The first-phase contract alone is worth 300 million euros and involves a one-and-a-half-years maintenance.
Alstom said the “combined cycle technology is based on its GT26 gas turbine, which has 60 percent efficiency and lowers the kilowatt-hour cost without reducing availability of power.
GT26 gas turbine, according to Alstom, will provide Sembcorp high flexibility and efficiency in bringing in a stable minimum amount of power to its customers at the lowest cost.
Alstom built Singapore’s first and largest cogeneration plant for Sembcorp in 2001. It has a generation capacity of 815 megawatts. The second cogeneration plant in Singapore, constructed by ExxonMobil, has 155 megawatts.
Sembcorp is the country’s fifth largest electric distributor with a 785-megawatt generation capacity. With this new cogeneration plant, the company’s generation capacity will almost double to about 1.6 gigawatts.
This new cogeneration plant, Sembcorp said, will strengthen its position in Singapore’s power market. It will enable them to supply steam as well to the petrochemical and chemical manufacturing industries in Jurong Island.
Sembcorp said the new cogeneration plant is not expected to have a material impact on the earnings and net asset value per share of the company for the current year.
