Caterpillar Inc. (NYSE: CAT) said Southern Minnesota Municipal Power Agency (SMMPA) has signed an agreement to purchase four G16CM34 natural gas-fired generator sets to replace an oil and gas-fired steam plant in Fairmont, Minn.

The new Cat medium speed reciprocating engines will work in conjunction with SMMPA’s existing 12 MW of dual-fuel reciprocating engine capacity to restore the plant’s original permitted capacity of 37 MW.

The Fairmont Energy Station project is the third power plant in the U.S. in which Caterpillar is installing its natural gas-fired generator sets.

The project is scheduled to begin May 1, 2012 to enable final completion by December 2013.

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