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February 2006 MARKET PROSPECTS POWER GENERATION ENDESA ORDERS 2 LARGE-SCALE FGD SYSTEMS Mitsubishi Heavy Industries Ltd (MHI), Mitsubishi Corp and Duro Felguera SA, a Spanish heavy machinery manufacturer, have jointly received a full-turnkey order from Endesa SA, Spain’s largest electricity provider, for the construction of two large-scale flue gas desulfur- ization (FGD) systems. The systems on order will be retrofitted to the No 4 and 5 coal-fired power generation units at Endesa’s Compostilla power generation plant in the north of Spain. By installing the FGD systems, Endesa is aiming to cope with new EU standards for flue gas that will go into force from 2008. Under the full-turnkey contract, which includes civil engineering work, MHI will be responsible for the basic design and supply of major system components. Duro Felguera will perform civil engineering and installa- tion work as well as supply the peripheral equipment for the project. MAJOR HYDROGEN POWER PROJECT FOR CALIFORNIA BP and Edison Mission Group (EMG) are planning a new US$1 billion hydro- gen-fueled power plant in California that would gener- ate clean electricity with minimal carbon dioxide emissions. The first-of-its-kind plant would be located alongside BP’s Carson refinery, about 20 miles south of Los Angeles, and would be capable of producing 500 MW of low- carbon generation, enough power to serve 325 000 Southern Californian homes. BP and EMG hope to complete detailed engineering and commercial studies in 2006, finalise project invest- ment decisions in 2008 and bring the new power plant online by 2011. The proposed Carson proj- ect would preserve limited fresh water sources by using recycled and treated city wastewater for plant needs. ALSTOM TO BUILD WORLD’S BIGGEST LIGNITE POWER PLANT Alstom has won a 450 mil- lion contract to build the world’s biggest lignite fired plant in Neurath, Germany, for utility giant RWE Power. The new Neurath lignite fired power plant, with a net capacity of 2100 MW, will include some of the most advanced steam turbine and generator technology in the world. Under the contract, Alstom will carry out the overall power plant engineering. Alstom will also supply, erect and commission two steam turbine islands including con- densers and deliver two steam generators. ONTARIO THERMAL CONTRACT GOES TO SNC-LAVALIN SNC-Lavalin Power Ontario Inc has been awarded a C$757 million contract by Sithe Global Power Goreway ULC to design and build the Goreway 880 MW Combined Cycle Thermal Power Plant in Brampton, Ontario. SNC-Lavalin Power Ontario will carry out all engi- neering, procurement and con- struction for the new power plant, the largest of its kind ever constructed in Canada. Goreway will be designed for maximum efficiency, including a system to capture and recycle its own exhaust heat. Work on Goreway is already underway, and will be completed in two key phas- es. The simple cycle compo- nent of the plant is scheduled for commercial operation in June 2007, with combined cycle operation online by July 2008. VA TECH SELECTED FOR SCOTTISH HYDRO PLANT VA Tech Hydro is to supply and install the complete electromechanical equip- ment for the Glendoe Hydropower project in Scotland. The 100 MW power plant will be built in an underground cavern, not far from Loch Ness. The project will be exe- cuted by the German sub- sidiary company, VA TECH Escher Wyss GmbH based in Ravensburg. The turnkey contract was awarded to Hochtief Construction AG at the end of last year by Scottish and Southern Energy Generation Ltd. VA Tech Hydro participat- ed in the planning, conception and optimisation of the project over the last two years. The installation work will be executed together with the local partner company Weir Engineering Services. SHAW, WESTINGHOUSE TO SUPPORT NUCLEAR FLEET EXPANSION Shaw Stone & Webster Nuclear Services and Westinghouse Electric Co are to provide engineering 2 Pump Industry Analyst Pump Company Index Aker Kvaerner 12 Alfa Laval 7,11,15 Allweiler 14 Almatec 13 Ampco-Pittsburgh 15 Andritz 10,15 AxFlow 13 Baker Hughes 12,15 BHEL 15 Bjørge 10,15 Blackmer 12 Bornemann 11,12,13 Cardo 10,12,15 Centrilift 12 Crane 7,13,15 Crane Pumps & Systems 7 Crown 16 Curtiss-Wright 12,15 Custos 15 DMW 15 Dover 12,15 Ebara 15 Finish Thompson 10 Flowserve 13,15 Franklin Electric 13 Gabbioneta 12 Gardner Denver 15 GE 15 Gévelot 10,12,15 GL&V 15 Gorman-Rupp 12,15 Graco 8,13,15 Graham 11 Grundfos 11,16 Grundfos South Africa 11 GUD Holdings 15 Hamworthy 11,15 Hyundai Heavy Industries 15 Idex 8,10,13,15 Ingersoll-Rand 15 Interpump Group 10,13 ITT Flojet 13 ITT Fluid Technology 16 ITT Flygt 13 ITT Jabsco 13 ITT Industries 13,15,16 Jesco 13 Johnson 16 Johnson Pumps of America 10 Kirloskar Brothers 12,15 KSB 1,9,10,11,15 Kubota 15 Layne Christensen 15 Lewa 1 Lewa Herbert Ott 1 Lutz 13 Met-Pro 15 Metso 15 Moyno 6 National-Oilwell Varco 15 Nikkiso 5,14,15 Nikkiso Pumps America 5 PACO 16 Pan World 13 PCM Pompes 12 Pentair 9,15 Pfeiffer Vacuum 10,15 Pursuit Dynamics 15 PXPUMPS 11,13 Richter Chemie-Technik 16 R&M Energy Systems 6 Robbins & Myers 6,13,15 Roper Industries 13,15 Schlumberger 12,15 Seepex 11 Shakti 16 SKF 15 Spirax-Sarco 10,15 Sulzer 10,15 Sulzer Pumps 16 Sulzer Pumps UK 11 Sundyne 5 Taco 10 Tarby 6 Techniques des Fluides 13 Tecumseh 15 Teikoku Electric 15 Textron 15 Thompson Pump 10 Torishima 15 Tsurumi 15 Tyco 12 United Technologies 15 Watson Marlow 14 Weatherford 15 Weir 10,12,15 Wilden 12,13 Wood Group 15 Wood Group ESP 10

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February 2006

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POWERGENERATION

ENDESA ORDERS 2 LARGE-SCALEFGD SYSTEMS

Mitsubishi Heavy IndustriesLtd (MHI), Mitsubishi Corpand Duro Felguera SA, aSpanish heavy machinerymanufacturer, have jointlyreceived a full-turnkey orderfrom Endesa SA, Spain’slargest electricity provider,for the construction of twolarge-scale flue gas desulfur-ization (FGD) systems.

The systems on order will be retrofitted to the No 4 and 5 coal-fired powergeneration units at Endesa’sCompostilla power generationplant in the north of Spain.

By installing the FGD systems, Endesa is aiming tocope with new EU standardsfor flue gas that will go intoforce from 2008. Under thefull-turnkey contract, whichincludes civil engineeringwork, MHI will be responsiblefor the basic design and supplyof major system components.Duro Felguera will performcivil engineering and installa-tion work as well as supply the peripheral equipment forthe project.

MAJORHYDROGEN

POWER PROJECTFOR CALIFORNIA

BP and Edison MissionGroup (EMG) are planninga new US$1 billion hydro-gen-fueled power plant inCalifornia that would gener-ate clean electricity withminimal carbon dioxideemissions.

The first-of-its-kind plantwould be located alongsideBP’s Carson refinery, about 20 miles south of Los Angeles,and would be capable of producing 500 MW of low-

carbon generation, enoughpower to serve 325 000Southern Californian homes.

BP and EMG hope to complete detailed engineeringand commercial studies in2006, finalise project invest-ment decisions in 2008 andbring the new power plantonline by 2011.

The proposed Carson proj-ect would preserve limitedfresh water sources by usingrecycled and treated citywastewater for plant needs.

ALSTOM TOBUILD WORLD’S

BIGGEST LIGNITEPOWER PLANT

Alstom has won a �450 mil-lion contract to build theworld’s biggest lignite firedplant in Neurath, Germany,for utility giant RWE Power.

The new Neurath lignitefired power plant, with a netcapacity of 2100 MW, willinclude some of the mostadvanced steam turbine andgenerator technology in theworld.

Under the contract, Alstomwill carry out the overall power plant engineering.Alstom will also supply, erectand commission two steamturbine islands including con-densers and deliver two steamgenerators.

ONTARIO THERMAL

CONTRACT GOESTO SNC-LAVALIN

SNC-Lavalin Power OntarioInc has been awarded aC$757 million contract bySithe Global Power GorewayULC to design and build the Goreway 880 MWCombined Cycle ThermalPower Plant in Brampton,Ontario.

SNC-Lavalin PowerOntario will carry out all engi-neering, procurement and con-struction for the new power

plant, the largest of its kindever constructed in Canada.Goreway will be designed for maximum efficiency,including a system to captureand recycle its own exhaustheat.

Work on Goreway isalready underway, and will be completed in two key phas-es. The simple cycle compo-nent of the plant is scheduledfor commercial operation inJune 2007, with combinedcycle operation online by July2008.

VA TECH SELECTED FOR

SCOTTISH HYDROPLANT

VA Tech Hydro is to supplyand install the completeelectromechanical equip-ment for the GlendoeHydropower project inScotland.

The 100 MW power plantwill be built in an undergroundcavern, not far from LochNess. The project will be exe-cuted by the German sub-sidiary company, VA TECHEscher Wyss GmbH based inRavensburg.

The turnkey contract wasawarded to HochtiefConstruction AG at the end oflast year by Scottish andSouthern Energy GenerationLtd. VA Tech Hydro participat-ed in the planning, conceptionand optimisation of the projectover the last two years.

The installation work willbe executed together with thelocal partner company WeirEngineering Services.

SHAW,WESTINGHOUSE

TO SUPPORTNUCLEAR FLEET

EXPANSIONShaw Stone & WebsterNuclear Services andWestinghouse Electric Coare to provide engineering

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Pump Industry Analyst

Pump CompanyIndex

Aker Kvaerner 12Alfa Laval 7,11,15Allweiler 14Almatec 13Ampco-Pittsburgh 15Andritz 10,15AxFlow 13Baker Hughes 12,15BHEL 15Bjørge 10,15Blackmer 12Bornemann 11,12,13Cardo 10,12,15Centrilift 12Crane 7,13,15Crane Pumps & Systems 7Crown 16Curtiss-Wright 12,15Custos 15DMW 15Dover 12,15Ebara 15Finish Thompson 10Flowserve 13,15Franklin Electric 13Gabbioneta 12Gardner Denver 15GE 15Gévelot 10,12,15GL&V 15Gorman-Rupp 12,15Graco 8,13,15Graham 11Grundfos 11,16Grundfos South Africa 11GUD Holdings 15Hamworthy 11,15Hyundai Heavy Industries 15Idex 8,10,13,15Ingersoll-Rand 15Interpump Group 10,13ITT Flojet 13ITT Fluid Technology 16ITT Flygt 13ITT Jabsco 13ITT Industries 13,15,16Jesco 13Johnson 16Johnson Pumps of America 10Kirloskar Brothers 12,15KSB 1,9,10,11,15Kubota 15Layne Christensen 15Lewa 1Lewa Herbert Ott 1Lutz 13Met-Pro 15Metso 15Moyno 6National-Oilwell Varco 15Nikkiso 5,14,15Nikkiso Pumps America 5PACO 16Pan World 13PCM Pompes 12Pentair 9,15Pfeiffer Vacuum 10,15Pursuit Dynamics 15PXPUMPS 11,13Richter Chemie-Technik 16R&M Energy Systems 6Robbins & Myers 6,13,15Roper Industries 13,15Schlumberger 12,15Seepex 11Shakti 16SKF 15Spirax-Sarco 10,15Sulzer 10,15Sulzer Pumps 16Sulzer Pumps UK 11Sundyne 5Taco 10Tarby 6Techniques des Fluides 13Tecumseh 15Teikoku Electric 15Textron 15Thompson Pump 10Torishima 15Tsurumi 15Tyco 12United Technologies 15Watson Marlow 14Weatherford 15Weir 10,12,15Wilden 12,13Wood Group 15Wood Group ESP 10