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Siemens to build German gas-fired power plant

Siemens to build German gas-fired power plant
FRANKFURT - Siemens AG SIEGn.DE has won a 500 million euro ($585.5 million) contract to build a gas-fired power station on the German Baltic Coast, operator Concord Power, half-owned by utility EnBW EBKG.DE , said this week. The construction of the plant, however, depends on state approval to connect the site in north eastern Lubmin with Germany\'s capital Berlin through a new gas pipeline as well as on a government decision on gas-tax exemptions. \"Siemens has prevailed,\" Concord Power managing director Herbert Aly said. \"The contract is roundabout 500 million euros and if you add operation and maintenance works over a 10-year period, which would also be carried out by Siemens, it would amount to around 600 million euros,\" he told Reuters. He said the figures did not include the around 120 million euros needed to link Lubmin with international east-west pipeline networks near Berlin. Plans to build environmentally friendly combined cycle gas turbine (CCGT) plants, such as in Lubmin, are closely observed by Europe\'s energy industry as many experts see them as a way to secure future energy supply, while also cutting emissions. Aly said he hoped that Concord will by the end of the year get the green light from two German states, Mecklenburg Western-Pomerania and Brandenburg, to build the Lubmin-Berlin pipeline, which was necessary for the project. \"We then could start building the plant next spring and connect it to the network in 2006,\" said Aly. His firm was also awaiting a decision by the federal government on details of a five-year gas tax exemption for new gas plant projects that are up and running by March 2006. Aly urged the government to allow for more time or no company would be able to make use of the exemption in Germany. \"We need around nine months more time,\" he said. Besides Concord\'s 1,200 megawatt (MW) plant, German utility EnBW aims to construct its own 800 MW CCGT plant on an adjacent site in Lubmin. EnBW also owns half of Concord, while German family-owned firm Saalfeld KG holds 47.5 percent and manager Aly 2.5 percent. Plans by utility E.ON EONG.DE to enter the Lubmin project were abandoned, said Aly. REUTERS NEWS SERVICE
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