BASF AG to Invest $265 Million on Greenfield Power Plant

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). BASF AG (NYSE:BF/Fra:BAS) (Ludwigshafen, Germany) Germany's largest chemical company has awarded Siemens Power Generation (NYSE: SI/FRA: SIEGn.f) (Erlangen, Germany) an engineering, procurement, and construction (E+P+C) contract for a new $265 million 440 megawatt combined heat & power (CHP) plant. The purpose of this power plant is to provide the Ludwigshafen site with a long-term supply of relatively cheap power and up to 650 metric tons of steam per hour to enhance it's production facilities.

Siemens Power Generation will deliver the (CHP) plant at Ludwigshafen former coal-fired power plant that is currently going through demolition work at this time. Mechanical construction kick-off is scheduled for the third quarter 2003, if the conditions remain favorable. The power plant will consist of two natural gas fired combustion turbine generators utilizing either a Siemens 187 megawatt (W501.F) or a Siemens 190 megawatt (V94.25A) combustion turbines and each to be fitted with a heat recovery steam generator (HRSG) and both will be driving a single steam turbine generator.

Siemens (PG) will also supply all the mechanical equipment, electrical systems, instrumentation and control systems, low NOx combustion system and Siemens (PG) advanced cooling technology. BASF AG awarded the contract to Siemens (PG) because of its excellent power plant performance track record and experience to bring nearly 90 percent energy efficiency plus reduce significant amount of CO2 emissions to the environment.

BASF AG is the world's leading chemical company and offers its customers a range of high-performance products, including chemicals, plastics, coatings systems, dispersions, agricultural products, fine chemicals as well as crude oil and natural gas.

BASF AG acts in accordance with the principles of sustainable development and in 2001 BASF had sales of $ 29 billion plus has 90,000 employees worldwide.

Siemens Power Generation (PG) is active in the development engineering and construction of hydroelectric, nuclear renewable energy and fossil fueled power stations Siemens (PG) employs a staff of 26,500 employees. In 2002, sales amounted to

$9.4 billion (Euro) and has received new orders totaling $1.582 billion (Euro).