Shaw’s Flue Desulfur Contract for Hong Kong’s Major Power Supplier

---

Researched by Industrial Info Resources (Sugar Land, Texas) – Hong Kong’s primary power supplier Castle Peak Power Company (CAPCO) has accepted clear emission targets for its main 4,108 MW power station over the next two years. The company has been working closely with the Hong Kong environmental protection department to expedite the application and is working on a range of emission reduction initiatives in support of 2010 objectives, which include bringing LNG to Hong Kong and retrofitting emissions reduction equipment in the main power station.

The retrofit project is already underway and The Shaw Group (NYSE:SGR) (Baton Rouge, Louisiana) has been awarded an EPCM (engineering+procurement+construction+management) contract by CAPCO. The contract covers a wet flue gas desulfurization retrofit program for four 680 MW units at the power station and is scheduled for completion in August 2011.

CAPCO is a Hong Kong (HK) based company with ExxonMobil (NYSE:XOM ) (Irving, Texas) holding 60% and China Light Power (CLP) holding 40% shares in the company. Shaw will provide engineering services, procurement support services, construction management and start up management as well as supervision and contract administration on behalf of Castle Peak. The value of the contract was not disclosed.

CLP serves the business and domestic communities in Kowloon, the New Territories, Lantau and most of the outlying islands. Operating a vertically integrated electricity generation, transmission and distribution business the company provides services to over 5.5 million people in the supply area. Then Castle Peak unit supplies 2.2 customers in an area, which has a population density of 6,300 people per square kilometer.

J.M Bernhard Jr, Chairman, President and CEO of Shaw said, “We are very pleased to have been selected by Castle Peak to provide EPCM retrofit services for this facility. Our strong relationship with Castle Peak, with whom we completed the Black Point combined cycle gas-fired project in 2002, enables us to continue our important power related work within this region. We are especially pleased to start our first air quality control project in Hong Kong, as well as bring Shaw’s retrofit expertise to China.”

CLP operates a number of power stations - Castle Peak, Black Point and Penny’s Bay in partnership with ExxonMobil. It also obtains some power from the Guandong nuclear power station in Shenzen and the Guangzhou pumped storage power station in Conhua. It also supplies power to Guangdong province.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.