Eesti Energia and Alstom signed new oil shale power plant building contract

Eesti Energia and Alstom Consortium signed an EPC building contract for a new oil shale power plant. The new plant of up to two oil shale-fired power units (2x 300 MW) is planned next to an existing power plant close to Narva.

At current stage, the contract allows Alstom to start only with the preliminary preparations. Full notice to proceed will be given to Alstom once the state support scheme needed for new oil shale power plant has been approved.

"Today is a very important day in the history of Estonian energy. Estonian people must know that this contract will secure our domestic energy supply for the coming decades. Both, from the viewpoint of energy security as well supply assurance, we will be in a much better position than today once the new oil shale power plant is completed. Also, the new energy units will give us cleaner environment and greener future for our children," said Juhan Parts, Minister of Economic Affairs and Communications of Estonia.

"This day – January 14th – will go to history for two reasons. In a few hours Estonian own currecy, Eesti Kroon will go out from the circulation. Let us say goodbye to the Kroon that has served so well from 1991 through all the years of building up the economy," said Pierre Lellouche, State Secretary of Economy, Finance, Industry and Foreign Trade of France.

"Today is also historical for the reason that brought us all here together – to sign the contract for building the new energy units. This contract is one of the important and decisive steps to guarantee your energy security and we all know how important share the energy security possesses in the general security."

„The discussion concerning our energy future has been long and thorough. It has lead us to a well considered decision – to build a new, domestically fuelled power plant. The plant will be completed by the end of 2015, just in time, when it is needed in Estonia," said Sandor Liive, CEO of Eesti Energia. „The new power plant will use the best technology available, it will be effective and environmentally sustainable, a mix of oil shale and biofuel can be used there."

"This contract illustrates Eesti Energia's sustained trust and confidence in Alstom's technology and project execution expertise. We are proud to support the modernisation of Estonia's production fleet and to help it attain energy security," says Patrick Kron, Chairman and CEO of Alstom.

After announcing the tender for building new power plant, Eesti Energia received two bids in summer 2010. As bid from SNC Laval Polska did not qualify, the negotiations were started with Alstom Consortium (Alstom Estonia AS, Alstom Power Sp. z oo, Alstom Power Systems SA). By the end of December 2010 Eesti Energia and Alstom had agreed on the conditions of the contract.

The new power plant of up to two oil shale-fired power units (2x 300 MW) equipped with Circulating Fluidised Bed (CFB) technology will be built next to an existing power plant close to Narva, in northeast Estonia. The completion of the first power unit is scheduled in 2015. Investment decision on the second unit will be taken in 2012. Total cost of the power plant is approximately 950 million euros.

New power plant and shale oil plant, completed in 2012, will form a new oil shale energy complex, consisting of common oil shale stock, fuel-supply and ash management systems, as well a new 330 kV subdivision.

Marina Bachmann
Press Officer
Eesti Energia AS
Tel: 71 51 218
GSM: 56 456 600
[email protected]