Iberdrola Plans Construction of Laguna II Power Station

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Researched by Industrialinfo.com (Industrial Information Resources Incorporated: Houston, Texas). Iberdrola SA (OTCBB: IBDRF) (Bilbao, Spain) has awarded an engineering, procurement, and construction contract to ICA Fluor Daniel, which is a joint venture between Fluor Daniel Corporation (Aliso Viejo, California) and Empresas ICA Sociedad Controladora (Mexico City, Mexico). The contract calls for the construction of a 500-megawatt natural gas fired combined cycle power station that goes by the name of Laguna II and is to be built adjacent to Mexico's state owned utility Comision Federal de Electricidad Gomez Palacio power station located in Mexico's Durango State. The power generated will be sold to the local state owned utility under the Mexico's independent energy producer's development plan.

The project will involve constructing two 250-megawatt power plants (blocks) consisting of two natural gas fired 171-megawatt (MS7001FA) General Electric combustion turbine generators. The gas turbines will be supplied with heat recovery steam generators (HRSG's) to drive two 79-megawatt steam turbine generator sets utilizing GE's CCGT Technology. The F-class gas turbines will be equipped with GE's advanced DLN (dry low NOx) emissions system that achieves levels of NOx emissions well below 25 ppm in commercial operation and runs at 15-18 ppm NOx at caseload. At present the project in the engineering phase and is scheduled for a mechanical construction kick-off during the first quarter of 2003 with commercial operation planned for the second quarter 2005.

Iberdrola is Spain's second largest electricity utility and serves nearly nine million customers, plus owns nuclear power facilities, hydroelectric and thermal power stations with a generation capacity of more than 16,000 megawatts. The company is planning to branch into new businesses: Iberdrola Diversificacion which will manage telecommunications, real estate, aerospace & water holdings and Iberdrola Ingenieria y Consultoria will manage consulting & energy engineering and finally Iberdrola Sistemas will provide information consulting services. Iberdrola has over 9,800 employees as of 2002 and has company worth of over ten billion.

Empresas ICA Sociedad Controladora (ICA) is Mexico's number one construction company participating in private and public construction sectors plus engineering projects. The company builds civil and industrial projects, develops real estate, and operates toll roads and water supply systems. ICA's industrial projects are handled through a joint venture with US-based engineering company Fluor Daniel. ICA has over 11,500 employees and has a company worth of $1.5 billion.