Siemens secures orders from Russia for power plant components

Dec. 6, 2007

Erlangen, Germany, December 3 -- Siemens Power Generation (PG) has been awarded a contract by Power Machines (PM) for the supply of major power plant components for the Urengoiskaya and Kirishi projects in Russia. Power Machines is Siemens PG's strategic partner in Russia. Only a few weeks ago Siemens PG and the majority shareholder of Power Machines, Alexsey Mordashov, concluded an agreement on extensive cooperation with the leading Russian supplier of power plant equipment, Power Machines. These two projects are further evidence of the role of Power Machines and Siemens as market leader in Russia in the field of gas turbine technology. The total value of the orders for Siemens PG is approximately EUR90 million.

"Siemens has been cooperating successfully with Power Machines since the early 1990s. In the course of the last 12 months there has been an enormous dynamic upswing in demand in the Russian power plant market," said Michael Suess, member of the Group Executive Management of Siemens Power Generation. "As a strategic partner of Power Machines Siemens is actively involved in the requisite modernization and further expansion of the Russian power plant fleet."

For the advanced 450-MW combined cycle power plant Urengoiskaya in the Tjumen region of northwest Siberia, Siemens PG and PM will supply two gas turbines.

The existing 6x300 MW steam power plant Kirishi, located 120 kilometers east of St. Petersburg, is the first project in which the new Siemens Repowering System (SRS concept) will be deployed. One of the existing steam power plant units will be equipped with advanced gas turbines instead of a boiler. For Kirishi, Siemens PG will supply two gas turbines, two generators, the electrical equipment, and the requisite auxiliary systems. The conversion will uprate the power plant unit from 300 to 800 MW. It is to serve as a reference for further repowering projects using this concept at other power plants. With the new components plant efficiency and thereby profitability and also environmental compatibility can be significantly increased. With repowering it will be possible to increase efficiency from the current figure of between 35 and 40 percent to as much as 58 percent and will also reduce the specific CO2 emissions per kilowatt-hour (kWh) generated by approximately 30 percent.