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GE Energy Receives EUR 635 Million (Nearly US$1B) Contract for Power Project to Help Meet Algeria's Electricity Needs

Posted on: Tuesday, 10 June 2008, 12:00 CDT

A new planned power plant featuring GE Energy's F-class gas turbine technology will help meet the rapidly growing energy needs of eastern Algeria when it enters service at the end of 2011.

Algerian electric company Shariket Karhaba Koudiet Eddraouch Spa, owned by Sonelgaz and Sonatrach, has awarded a contract to GE and its consortium partner, the Spanish engineering firm Iberdrola Ingenieria y Construccion, for the construction of the Koudiet Eddraouch power plant in El-Tarf province, 700 kilometers east of Algiers.

GE's contract is valued at approximately EUR 635 million (nearly US$1B). Additionally, GE also is in the process of signing a contractual services agreement to provide maintenance and parts over 20 years.

The new facility is expected to produce 1,200 megawatts of power, which would increase Algeria's current installed generation capacity by approximately 18 percent. As one of the largest combined-cycle power plants in the region, the project would help to meet Algeria's electricity demand, which is growing at the rate of more than seven percent per year, according to the Commission of Electrical Regulation for Gas. Overall, GE has supplied approximately 70 percent of the gas turbines operating in Algeria.

"We're very pleased that our technology has been selected for this project, which will play a significant role in meeting the future energy needs of Algeria," said Ricardo Cordoba, president of GE Energy Western Europe and Northern Africa.

Sonelgaz Production de Electricite, Kahrama SpA and Shariket Kahraba Skikda are generating more than 7,900 megawatts of power. According to the Ministry of Energy and Mining, Algeria's power requirements will reach 14,000 megawatts by 2010, as the country's economy continues to grow.

"Today, Sonelgaz is pleased to announce the purchase of additional gas turbines and an agreement for a long term maintenance contract for its overall installed gas turbine fleet in Algeria. The benefits of this long term agreement include plants with better efficiency and reliability, controlled costs spending for the maintenance and is made possible due to the trust we have in our business relationship and in the latest technologies developed by GE," said Mr. Douadji Kinane, CEO, Sonelgaz Manufacturing.

GE plans to manufacture the F-class gas turbines for the Koudiet Eddraouch at GE Energy's facilities in Belfort, France. Previously, GE provided its F-class technology for the 1,227-megawatt Hadjret En-Nouss plant and the 800-megawatt Skikda project located in Algeria.

"This latest contract in Algeria illustrates our continued focus on meeting the global energy demand with leading technology solutions," said Steve Bolze, president and CEO of GE Energy's power generation business, based in Schenectady, N.Y. "Our highly efficient, F-Class gas turbines provide our customers a proven, highly reliable power generation platform."

GE's installed fleet of F-class gas turbines has surpassed 23 million hours of commercial operation worldwide, making GE the leader in advanced technology F-Class field experience.

About Iberdrola Ingenieria y Construccion

GE's consortium partner, Iberdrola Ingenieria y Construccion, is a leader in electric sector engineering services and is the corporate engineering arm of Iberdrola, the fourth largest energy company in the world. The spectrum of services provided by Iberdrola Ingenieria y Construccion ranges from specialist consulting to the turnkey supply of generating plants, sub-stations, lines or major civil works, fundamentally in the area of electricity companies with network services. Iberdrola Ingenieria y Construccion's projects have been carried out in more than 30 countries. In 2007, the awards reached up to 2,669 MMEUR , 200% more than the previous year.

About GE Energy

GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2007 revenue of $22 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.

About GE

GE is Imagination at Work--diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing and media content, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.

Source: Business Wire

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