Kvaerner Secures US$120 Million Power Plant Contract From Calpine, in Pennsylvania, USA

Apr 26, 2001, 01:00 ET from Kvaerner

    LONDON, April 26 /PRNewswire/ -- Kvaerner, the Anglo-Norwegian engineering
 and construction Group, today announced that it has been awarded a
 US$120 million contract by Calpine Corporation, to build a 563MW natural gas,
 combined-cycle merchant power plant project in Pennsylvania, USA.
     Keith Henry, CEO of Kvaerner's core E&C business, commented: "With the
 current energy crisis in America -- and the country's ever-increasing demand
 for power set to reach new records over the next decade -- there is huge
 demand for experienced power construction suppliers in the market-place.  The
 strategic alignment we already have with major independent power producers in
 the U.S. -- together with our long history in the industry, puts Kvaerner in a
 strong position to respond swiftly in that market," he said. "Kvaerner is an
 alliance partner with Calpine and this is the second award to us.  This high
 level of activity is set to continue, and we're currently bidding for several
 further projects in the sector.  We have the resources and technical expertise
 to help accelerate construction in the energy market -- and this is a position
 we intend to optimise," Henry concluded.
     Kvaerner will act as prime contractor for Calpine's Ontelaunee Energy
 Center, located in Reading, Pennsylvania, and it will execute the project on a
 union direct hire basis supplemented by speciality subcontractors.  Major
 activities being undertaken by Kvaerner's construction team include site
 management, underground utilities, foundations, structural steel, and all
 major mechanical equipment installations.  Calpine will own and operate the
 plant, which, is scheduled for completion in mid-2002.
     During 2000, Calpine Corporation also awarded Kvaerner a lump-sum turnkey
 US$105 million construction contract for another power plant in Baytown,
 Texas -- an 800MW co-generation facility.  Other major energy projects in the
 U.S. include a 540MW gas-fired power plant for Kinder Morgan, and a selective
 catalytic reduction installation for Allegheny Energy.  Kvaerner is also
 currently undertaking a waste to energy plant for United Waste, on the Isle of
 Man.
 
     Notes
     1.  Kvaerner is a world-class Anglo-Norwegian engineering and construction
 Group.  It meets the needs of its customers by adding value to their
 business -- through the provision of innovative, cost-effective
 solutions -- for challenges in the hydrocarbons, process and metals
 industries.  The Group's activities are currently organised in two core
 business areas: E&C (Engineering and Construction), and Oil & Gas.  Kvaerner
 is a Norwegian registered business, but has a London, UK-based international
 headquarters.  The Group has annual revenues in excess of US$6 billion, with
 some 35,000 permanent staff located in almost 35 countries throughout Europe,
 Asia and the Americas.
     2.  The E&C business area of Kvaerner specialises in the provision of
 process technology, design, engineering, project management, procurement and
 construction to a number of industrial sectors on a worldwide basis: chemicals
 and polymers, pharmaceuticals, oil and gas, water, energy, nuclear, minerals,
 mining, steel and transportation.  Kvaerner's breadth of capability is unique
 among its competitors.  It offers the complete range of services that are
 necessary to realise global projects from conception to start-up.  These
 services include a portfolio of advanced process technologies, research and
 development, test work, a full range of engineering studies (including
 bankable feasibility and environmental studies), total project management,
 engineering and design, procurement, construction and maintenance services.
 Kvaerner E&C employs more than 9,000 people operating from over 30 offices
 worldwide.  This global reach enables Kvaerner to tailor its services and
 resources to suit individual client needs and market conditions to provide
 cost-effective technical solutions.
 
 

SOURCE Kvaerner
    LONDON, April 26 /PRNewswire/ -- Kvaerner, the Anglo-Norwegian engineering
 and construction Group, today announced that it has been awarded a
 US$120 million contract by Calpine Corporation, to build a 563MW natural gas,
 combined-cycle merchant power plant project in Pennsylvania, USA.
     Keith Henry, CEO of Kvaerner's core E&C business, commented: "With the
 current energy crisis in America -- and the country's ever-increasing demand
 for power set to reach new records over the next decade -- there is huge
 demand for experienced power construction suppliers in the market-place.  The
 strategic alignment we already have with major independent power producers in
 the U.S. -- together with our long history in the industry, puts Kvaerner in a
 strong position to respond swiftly in that market," he said. "Kvaerner is an
 alliance partner with Calpine and this is the second award to us.  This high
 level of activity is set to continue, and we're currently bidding for several
 further projects in the sector.  We have the resources and technical expertise
 to help accelerate construction in the energy market -- and this is a position
 we intend to optimise," Henry concluded.
     Kvaerner will act as prime contractor for Calpine's Ontelaunee Energy
 Center, located in Reading, Pennsylvania, and it will execute the project on a
 union direct hire basis supplemented by speciality subcontractors.  Major
 activities being undertaken by Kvaerner's construction team include site
 management, underground utilities, foundations, structural steel, and all
 major mechanical equipment installations.  Calpine will own and operate the
 plant, which, is scheduled for completion in mid-2002.
     During 2000, Calpine Corporation also awarded Kvaerner a lump-sum turnkey
 US$105 million construction contract for another power plant in Baytown,
 Texas -- an 800MW co-generation facility.  Other major energy projects in the
 U.S. include a 540MW gas-fired power plant for Kinder Morgan, and a selective
 catalytic reduction installation for Allegheny Energy.  Kvaerner is also
 currently undertaking a waste to energy plant for United Waste, on the Isle of
 Man.
 
     Notes
     1.  Kvaerner is a world-class Anglo-Norwegian engineering and construction
 Group.  It meets the needs of its customers by adding value to their
 business -- through the provision of innovative, cost-effective
 solutions -- for challenges in the hydrocarbons, process and metals
 industries.  The Group's activities are currently organised in two core
 business areas: E&C (Engineering and Construction), and Oil & Gas.  Kvaerner
 is a Norwegian registered business, but has a London, UK-based international
 headquarters.  The Group has annual revenues in excess of US$6 billion, with
 some 35,000 permanent staff located in almost 35 countries throughout Europe,
 Asia and the Americas.
     2.  The E&C business area of Kvaerner specialises in the provision of
 process technology, design, engineering, project management, procurement and
 construction to a number of industrial sectors on a worldwide basis: chemicals
 and polymers, pharmaceuticals, oil and gas, water, energy, nuclear, minerals,
 mining, steel and transportation.  Kvaerner's breadth of capability is unique
 among its competitors.  It offers the complete range of services that are
 necessary to realise global projects from conception to start-up.  These
 services include a portfolio of advanced process technologies, research and
 development, test work, a full range of engineering studies (including
 bankable feasibility and environmental studies), total project management,
 engineering and design, procurement, construction and maintenance services.
 Kvaerner E&C employs more than 9,000 people operating from over 30 offices
 worldwide.  This global reach enables Kvaerner to tailor its services and
 resources to suit individual client needs and market conditions to provide
 cost-effective technical solutions.
 
 SOURCE  Kvaerner