MPX Receives Installation License for 360 MW Porto Itaqui Power Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Brazilian energy company MPX Energia SA (SAO:MPXE3) (Rio de Janeiro) has recently announced that the preliminary installation permits for the Porto Itaqui Phase I project have been granted by the Federal Environmental Authority, IBAMA. The license allows the company to start site-preparation and worksite assembly. In November 2008, the Brazilian environmental authority granted the preliminary and environmental permits for the project. For related information, view November 6, 2008 article - Brazil's Porto Itaqui Power Plant Receives Permits.

The engineering, procurement and construction contract was awarded to the Mabe Consortium, which consists of Efacec (Sao Mamede de Infesta, Portugal), Alusa (Santiago, Chile), BC Projetos (Rio de Janeiro) and Maire Engineering (Rome, Italy), a division of Maire Tecnimont (BIT:MT) (Rome). The $1.5 billion project, also known as Termomaranhao, will have a total power capacity of 720 megawatts (MW) and will be constructed in two phases.

The first phase, which has a total investment cost of $698 million, is expected to become operational in January 2012 and will be equipped with a 360-MW Siemens AG (NYSE:SI) (Munich, Germany) steam turbine and a Doosan Babcock Energy Limited (Crawley, United Kingdom) boiler. The second phase, which is currently under feasibility studies, will have an estimated total investment cost of $733 million and is expected to start operations in January 2014. The power station is located at the Itaqui Port in Maranhao State.

MPX is developing nine power generating projects that are expected to be completed before 2018. All the projects are located in Brazil except for the 1,400-MW UTE Castilla coal fired thermal power plant in Chile. The 1,400-MW UTE Porto do Acu coal fired power plant in Rio de Janeiro State is the company's main project and is scheduled to start operations in 2012. The plant will be equipped with two 700-MW steam turbines. MPX has recently started the construction of the 720-MW Porto do Pecem coal-fired power plant, which will be equipped with two 360-MW Siemens steam turbines. For related information, view July 8, 2008, article - MPX and EDB to Restart Construction of 720-Megawatt Porto do Pecem Power Plant.

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