Six year maintenance deal for National Power

Six year maintenance deal for National Power

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Zimbabwe Electricity Supply Authority (ZESA) and Rio Tinto Zimbabwe, the metal and mining corporation, have been awarded exclusive negotiating rights by the Government of Zimbabwe to develop Southern Africa's first major independent power project. The plant will consist of four 350MW generating units. Three are to be operational by the winter of 2004, with the fourth planned to be onstream three years later, in line with ZESA's system development plan. Financial arrangements for the project are expected to be completed in fiscal year 1999/2000. The power station will be supplied with coal from a new .open cast mine, to be developed alongside it by Rio Tinto. The mine has proven resources of more than 500 million tonnes of low sulphur coal. Output from the plant will be sold through a 25-30 year power purchase agreement with ZESA. "Zimbabwe currently imports a substantial proportion of its electricity from neighbouring utilities to meet its growing needs. The Gokwe North power project could produce around a third of the country's power demand and act as a catalyst for further growth and regional development," said National Power chief executive, Keith Henry.

COASTAL PLANS L A R G E S T DIESELFUELLED PLANT IN NICARAGUA Coastal Power, a subsidiary of the energy holding Coastal Corp, is to build the largest diesel engine-fuelled power generation facility in Nicaragua. The 50MW plant is to be built in Tipitapa, near the country's capital Managua. Construction is scheduled to begin in the first quarter of 1998. Coastal Power and its Nicaraguan partners will build, own and operate the facility. The power produced will be sold to the Nicaraguan utility

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company, Empresa Nicaraguense de Electricidad, in a 15 year power-purchase agreement. Robert Hart, president of Coastal Power Company, explained that the Tipitapa power plant will complement Coastal Power's other regional power plants. The other Coastal Power facilities in the region include a 150MW diesel engine power plant in E1 Salvador, a 67MW diesel engine barge in the Dominican Republic, and a 120MW coal-fired power plant in Guatemala, scheduled to begin commercial operation in 2000.

ROLLS-ROYCE TO P O W E R UP HOSPITAL Rolls-Royce has won a C$7 million, cogeneration project to construct a power plant at London Health Sciences Centre (LHSC), Ontario, Canada. The new plant will generate 5MW of electricity and up to 29MW of steam, simultaneously, from a natural gas fuel source. Detailed engineering is in progress and construction is scheduled to begin in the spring of 1998. The power plant will be commissioned and enter service in late 1998. "Teaching hospitals use an enormous amount of electricity and steam. Cogeneration allows us to be more efficient, as well as protecting hospital operations from power interruptions," said Doug Albion, manager of facilities at LHSC.

OCCIDENTAL AND C O N O C O TO BUILD TEXAS COGENERATION FACILITY Occidental Energy Ventures Corp, a subsidiary of Occidental Petroleum Corp, and Conoco Global Power Inc, a wholly-owned subsidiary of Conoco, the energy arm of DuPont, have announced

that financing is complete for a 440MW natural gas fired cogeneration power plant. The jointly developed US$210 million project is to be built near Ingleside, Texas, USA. Construction is scheduled to begin in early 1998 and commercial operation is expected to start in January 2000. The plant is designed to produce 440MW of electric power and 1.1 million pounds per hour of process steam. It will be built adjacent to existing chemical complexes, which will purchase the majority of the plant's output. Excess electricity will be sold into the Texas power markets.

SIX Y E A R MAINTENANCE DEAL FOR NATIONAL P O W E R A major six year power station maintenance deal, likely to be worth around £170 million, has been announced between National Power, the UK electricity generator, and Mitsui Babcock Energy, the UK boiler manufacturer and after market service contractor. Under the alliance, boiler overhaul services, maintenance, technical support and spares will be provided by Mitsui Babcock to National Power's coal and oil-fired plants, initially in the UK, with the possibility of expansion worldwide. Both companies have major global ambitions and believe this alliance will provide a springboard for joint new business opportunities overseas.

PRAXAIR EXPANDING RARE GASES CAPACITY Praxair, the industrial gases company, is to expand its rare gas production capacity

at its Calumet, Indiana, USA, facility. The expansion will increase annual production of xenon by 300 000 litres, krypton by two million litres and neon by 15 million litres. The growing demand for these gases is driven by increased applications in the aerospace, medical, lighting and other high technology industries. Praxair also intends to increase capacity at two other facilities during 1998.

AIR P R O D U C T S CONTINUES EXPANSIONS Air Products and Chemicals Inc, the industrial gases and related equipment supplier, is continuing to invest in capacity expansions at various locations. The company is doubling the capacity of its industrial gas facility near Butler, Indiana, USA, to produce additional quantities of gaseous oxygen, nitrogen and argon for Steel Dynamics lnc (SDI), and its wholly-owned subsidiary Iron Dynamics Inc (IDI). The expansions are due for completion by late 1998. The additional oxygen and argon are needed for SDI's new caster and furnace complex, due for completion in the second quarter of 1998. Nitrogen is needed for IDI's 520 000 metric ton per year iron plant, which will come onstream in late 1998. Air Products has also expanded its air separation plant in Midlothian, Texas, USA, to meet the increased demands of customers. The Midlothian facility produces oxygen for Chaparral Steel, which requires 100 additional tons of oxygen per day, to help boost production by over 30 per cent by 1999. Air Products is now also supplying 100 tons per day of oxygen to Texas Industries Inc from this plant.