Dongfang Electric Signs BTG Supply Contract for Deyuan Fugu Coal-fired Units

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Researched by Industrial Info Resources (Sugar Land, Texas)--Dongfang Electric Corporation Limited (SHA:600875) (DEC Limited) (Chengdu, China), the listed flagship of Dongfang Electric Corporation (DEC) (Chengdu), signed a contract with Shandong Luneng Group Company Limited (Luneng Group) (Jinan, China) to supply boiler, turbine and generator (BTG) equipment for two 1,000-megawatt (MW) coal-fired units in the Phase II expansion project of Deyuan Fugu Power Plant in Chengdu, on November 5, 2009.

Si Zefu, general manager of DEC and chairman of DEC Limited; Wen Shugang, president of DEC Limited; and Xu Zhonghua, deputy general manager of Luneng Group, attended the signing ceremony, DEC announced on November 6, 2009.

Deyuan Fugu Power Plant is located in Miaogoumen Town, Fugu County of Yulin City, in Shaanxi province, where it is the center of the largest coal zone in China. The plant is a key project in Luneng Group's "integrated coal and power development strategy." The project has an initially planned capacity of 3,600 MW of air-cooling, coal-fired units, and a coal mine with annual output of 9 million metric tons. Two 600-MW units built in Phase I were commissioned in July 2008 and November 2008. Two 1,000-MW ultra-supercritical, coal-fired units, as well as with flue gas desulfuration and denitration devices, will be built in the Phase II expansion project.

The two firms responsible for the construction and operation of the project are Shaanxi Coal Industry Group Company Limited (Xi'an, China), with 30% of the work, and Shaanxi Deyuan Fugu Energy Company Limited (Yulin, China), the project company jointly invested by Beijing Deyuan Investment Company Limited (Beijing), a subsidiary of Luneng Group, with 70%.

The project received approval from the National Development and Reform Commission in April 2009. According to the schedule, both units of the project are expected to begin operation in 2011.

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