Siemens wins pounds 180m gas-turbine contract in Scotland

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SIEMENS AG, Germany's largest electronics and engineering company, said its KWU energy unit has won the contract to install new gas turbines at Peterhead Power Station, the Scottish steam power plant owned by Hydro- Electric.

Siemens said the contract to increase efficiency and cut pollution is worth pounds 170-pounds 180m. Work will start in late spring. Siemens said the new equipment, set to go into operation in the summer of 2000, will make the plant, north of the city of Aberdeen, more efficient and environmentally friendly.

The project will cut emissions of noxious gases such as NO by 85 per cent, and CO2 by 50 per cent, and increase the station's efficiency by 50, Hydro-Electric said.

Siemens said its main construction contract is to design, manufacture, erect, integrate and set to work the new plant at Peterhead, and the total cost of the project will be pounds 220m.

The German engineering giant said the order is its seventh-largest for a power plant in Britain since the opening up of the UK electricity market to competition in the beginning of the 1990s.

Dr James Martin, director of generation at Hydro-Electric, said: "The project represents the first re-powering of a major power station in the UK, although the technology has been individually proven in Europe and the US."