Denmark's Dong Energy to Complete 280-Megawatt Combined Heat and Power Station in Norway by Year-End

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Mongstad Power Station began construction in 2007 and is expected to be completed by the end of this year. Located on the west coast of Norway, north of Bergen at the site of StatoilHydro ASA's (NYSE:STO) (Stavanger, Norway) Mongstad Refinery, the plant's investment cost is about $250 million.

The power station will supply 280-megawatts (MW) of electricity and 350 MW of heat. The output will serve the Mongstad Refinery as well as supply the Troll A Gas Platform with power. Troll is Norway's largest gas and oil field in the North Sea.

The project involves installing two General Electric (NYSE:GE) (Fairfield, Connecticut) Frame 9 gas turbines of 130 MW each, heat-recovery steam generators, and a steam turbine to close the cycle. The generators are manufactured by NEM (Leiden, Netherlands). Most of the equipment is already in place, and officials expect to begin the plant's start-ups by August of this year.

The facility will run on natural gas from Troll and fuel gas supplied by the refinery. The Mongstad oil refinery has an annual capacity of 10 million tons. The facility belongs to Mongstad Refining, which is owned 79% by StatoilHydro and 21% by Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands). The refinery's main products are petrol, diesel oil, jet fuel and other light petroleum products.

Danish energy company Dong Energy (Skaerbaek, Denmark) will own and operate the Mongstad plant for a period of 20 years. Efficiency of the facility will be about 70% at start-up, which will at the same time, reduce emissions of carbon dioxide per kilowatt-hour of energy output. For more information view related, July 15, 2004, article - Norway's $1.25 Billion Integrated CHP Gas-Fired Projects Bring CO2 Disposal Challenges.

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