Manufacturers

Siemens Signs $9 Billion Power-Plant Deal With Egypt

Siemens Signs $9 Billion Power-Plant Deal With Egypt

BERLIN, Germany — Siemens has signed contracts worth €8 billion for high-efficiency natural gas-fired power plants and wind power installations that will boost Egypt’s power generation capacity by more than 50 percent compared to the currently installed base. The projects will add an additional 16.4 gigawatts (GW) to Egypt’s national grid to support the country’s rapid economic development and meet its growing population’s demand for power.

The signing ceremony was witnessed in Berlin by Egyptian President Abdel Fattah El-Sisi and German Vice Chancellor Sigmar Gabriel. The orders expand on the memorandums of understanding announced at the Egypt Economic Development Conference (EEDC) held in Sharm El Sheik in March 2015.

“With these unprecedented contracts, Siemens and its partners are supporting Egypt’s economic development by using highly efficient natural gas and renewable technologies to create an affordable, reliable and sustainable energy mix for the country’s future,” said Joe Kaeser, President and CEO of Siemens AG. “The Egyptian people can count on Siemens. This was true more than 150 years ago when Siemens first started working in Egypt, and it remains our commitment today at this historic signing.”

Together with local Egyptian partners Elsewedy Electric and Orascom Construction, Siemens will supply on a turnkey basis three natural gas-fired combined cycle power plants, each with a capacity of 4.8GW, for a total combined capacity of 14.4GW. Each of the three power plants –- Beni Suef, Burullus and New Capital – will be powered by eight Siemens H-Class gas turbines, selected for their high output and record-breaking efficiency.

The plants will add power to the grid in stages. Plans call for an initial 4.4GW to go online before summer 2017 and the full 14.4GW to become available 38 months after the financing has closed and advance payments have been received. Once completed, the three power plants will be the largest in the world.

Siemens will also deliver up to 12 wind farms in the Gulf of Suez and West Nile areas, comprising around 600 wind turbines and an installed capacity of 2GW. The company will build a rotor blade manufacturing facility in Egypt’s Ain Soukhna region, which will provide training and employment for up to 1,000 people. The facility is scheduled to go into operation in the second half of 2017.

The signing ceremony was witnessed by Muhamed Shaker, Minister of Electricity and Energy of Egypt and Siemens CEO Joe Kaeser (front), the German Vice Chancellor Sigmar Gabriel and the Egyptian President Abdel Fattah El-Sisi (back).

photo courtesy of www.siemens.com/press

 

Tagged with ,

Comment on the story

Your email address will not be published. Required fields are marked *