AES Selects Contractors for New Investment Projects in North Hungary

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Researched by Industrial Info Resources (Sugar Land, Texas)--The AES Corporation (NYSE:AES) (Arlington, Virginia), which has had a presence in Hungary's electricity market since 1996, is currently selecting contractors for the building of a new coal-fired power plant in Borsod County, near the city of Kazincbarcika, and a combined-cycle conversion of its Tisza II power plant in Tiszaujvaros, both in northern Hungary.

The new power plant in Borsod, where the company already owns and operates a coal-fired and biomass-fired facility, will be equipped with two coal-fired steam turbines with a capacity of 155 megawatts (MW) each. Each unit will be coupled with a fluidized bed boiler and will use the cooling system of the already operational power station nearby. Total capital investment is expected to reach $700 million.

At present, negotiation with an undisclosed company is under way for the engineering, procurement and construction contract, and the construction is scheduled to start in the first quarter of 2009, with the commissioning of the first unit in the second quarter of 2012 and the second unit in 2013.

AES, through its subsidiaries, owns and operates three power plants in Hungary, as well as one coal mine. One of the facilities, Borsod, operational since 1953, was refurbished to allow the boilers to burn biomass. The plant has two operational steam turbines, each coupled with two boilers, two of which have been biomass-fired since 2003.

The company also plans to convert its 920-MW oil and gas fired power station, which was upgraded and refurbished in 2004, to combined-cycle mode. Construction is expected to kick off next year for a period of about 27 months with a capital cost of around $290 million.

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