EDB and MPX Begin Construction of 720-Megawatt Brazilian Power Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Energias do Brasil S.A. (Sao Paulo, Brazil) and MPX Energia S.A. (SAO:MPXE3) (Rio de Janeiro, Brazil) have recently started construction of the 720-megawatt (MW) Porto do Pecem coal-fired power plant. The $1.2 billion power plant is due for completion before January 2012. The first unit is expected to become operational in May 2011 and the second unit in November of the same year. The engineering, procurement and construction contract was awarded to Maire Engineering (Rome, Italy), a division of Maire Tecnimont (BIT:MT) (Rome), with a total investment cost of $936 million. View related February 6, 2008, article - Maire Engineering Awarded Contract to Build Two Coal-Fired Plants in Brazil.

Porto do Pecem coal-fired power station will be equipped with two 360-MW Siemens steam turbines and two Doosan Babcock boilers. The facility is located in northeastern Brazil in Sao Goncalo do Amarante, 55 kilometers from Fortaleza in the state of Ceara. View related July 30, 2007, article - EDB and MPX Form Partnership to Develop Two Coal-Fired Plants in Northern Brazil.

Energias do Brasil and MPX own the power plant equally and foresee the realization of a second phase for Porto do Pecem, which would consist of two additional 360-MW units at the plant's site. This second phase is currently under study.

MPX is developing nine other generating projects that are expected to be built before 2018. All the projects are located in Brazil except for the 1,400-MW UTE Castilla coal-fired thermal power plant, which will be located in Chile. The company's main project is the 1,400-MW UTE Porto do Acu coal-fired power plant, which is projected to start operations in 2012. The plant will be located in Rio de Janeiro state and will be equipped with two 700-MW steam turbines.

Energias do Brasil S.A. is controlled by Portuguese energy company Energias de Portugal (OTC:EDPFY) (Lisbon, Portugal). Since 1996, the company has been devoted to the generation, commercialization and distribution of power electricity in Brazil.

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