Siemens steam power plant modernization business is trending upward

Orders in the U.S. and Sweden total about €190 million


July 25, 2002 -- Siemens Power Generation (PG) will upgrade the turbines in four power plants in the U.S. and Sweden, including two separate stations for the U.S. utility PSEG, based in Newark, New Jersey, one plant for Texas-based TXU Energy, and one unit for Swedish operator Forsmarks Kraftgrupp AB.

"We continue to see signs of renewed strong commitments by our customers to their existing steam assets. And in the U.S. market, the Environmental Protection Agency's recent revisions to the New Source Review rules could drive further growth in this segment," said Craig Weeks, president of the Operating Plant Services Division of PG.

"During these turbulent times, it seems that the most secure place to invest is in the modernization of proven workhorses that are the backbone of the electricity supply system. Siemens upgrade technology and service concepts are tailor-made for such applications and we are extremely pleased that our customers have placed their trust in us," he continued.

The new steam turbines are intended to increase the efficiency and power output of the plants without additional fuel consumption. In addition, the upgrades will result in reduced time required for future maintenance and the associated costs.

Units 1 and 2 of PSEG's Salem nuclear power plant, each rated at 1,150 megawatts, were built by Westinghouse and have been supplying power to the eastern seaboard of the U.S. since 1977 and 1981 respectively. By installing a new high-pressure turbine in each of the plant's two units and three new low-pressure turbines in Unit 1, power output will increase by approximately 90 megawatts. The turbines will be manufactured at the PG plant in Muelheim/Ruhr.

The upgrade of Unit 2 will take place during the annual refueling outage in the fall of 2003, with Unit 1 to follow during the annual refueling outage in the spring of 2004. The high-pressure turbines of Unit 2 will be further optimized in the spring of 2006.

Originally built by Westinghouse in 1968, the 600-megawatt Hudson Unit 2 coal-fired power plant is one of the largest fossil-fuel electric generating units in New Jersey. Siemens will, during a fall 2003 outage, install a new high-pressure turbine that will significantly improve the unit's performance and reliability for owner PSEG. The turbine will be manufactured at PG's facility in Charlotte, North Carolina.

The order for four new low-pressure turbines for the TXU Energy Comanche Peak twin-unit nuclear plant, which is located near Dallas, Texas, is a continuation of the previous high-pressure turbine modernization performed by Siemens in 1999. These measures will provide additional output of more than 70 megawatts of incremental power at the 2,300-megawatt power plant, which has been generating electricity since the early '90s. The turbines will be manufactured in PG's manufacturing plant in Muelheim/Ruhr and are planned for installation in 2004 and 2005.

Siemens PG's contract with Swedish operator Forsmarks Kraftgrupp AB, a subsidiary of Vattenfall AB, call for upgrading three new low-pressure turbines in the ABB-built Forsmark 3 nuclear power plant located in Sweden northeast of Stockholm. These components, also to be built at the PG plant in Muelheim/Ruhr, will increase the power output of the 1,200-megawatt plant by approximately 30 megawatts. The upgrade work will be performed during the refueling outage in mid 2004.

The Power Generation Group (PG) of Siemens AG is in the international power generation sector. In fiscal 2001 (which ended September 30), Siemens PG posted sales amounting to EUR8.6 billion and received new orders totaling EUR12.2 billion. Earnings before interest, taxes and amortization (EBITA) amounted to EUR634 million. On September 30, 2001, Siemens PG had a workforce of around 26,500 around the world.


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