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Sat 13 Apr 2013 11:52 AM

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Alstom wins $978m Saudi power contract

Global energy firm to supply equipment for Yanbu 3 power and desalination plant

Alstom wins $978m Saudi power contract
(Photo for illustrative purposes only)

Global energy and transport giant Alstom has been awarded a $978m contract to supply equipment for the Yanbu 3 power and desalination plant located on the Red Sea coast in the western part of Saudi Arabia.

This will be one of the country's first supercritical power plants to run on heavy fuel oil and is part of Saudi Arabia's objective to expand its power generation base while minimising impact on the environment.

Alstom's part in the contract includes the basic engineering of the power block, advisory services during detailed engineering and procurement, supervision services during construction and commissioning and delivery of main equipment, Alstom said in a statement.

It added that the plant is due to enter commercial operation in 2016.

Alstom will supply the equipment to Al-Toukhi Company for Industry, Trading & Contracting, which is leading the consortium in charge of the engineering, procurement and construction of the plant for the Saline Water Conversion Corporation (SWCC).

The plant will produce 3100MW power to meet the increasing electricity demands in the region as it will feed the grid in the western part of the country where the cities of Makkah, Jeddah and Yanbu are located.

"The Yanbu 3 project will add 2500MW of cleaner high-efficiency power to the Saudi grid and steam to a new desalination plant thanks to our market-leading supercritical technology combined with Alstom's ability to integrate equipment into complete and complex power projects," said Andreas Lusch, senior vice president for Alstom's steam business.

Alstom has equipped over 20 percent of Saudi Arabia's installed power generation base. Its steam turbine technology also features in Shoaiba, the region's biggest power plant.

Alstom has already supplied or has under construction over 36GW capacity globally including projects in South Africa, Germany, Poland, Malaysia and China.

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