Alstom has signed a EUR 950 million contract with Narva Elektrijaamad AS, a subsidiary of Estonia's state owned utility Eesti Energia, to supply two 300 MW units for a fossil fuel power plant based on Circulating Fluidized Bed boiler technology in Estonia.

The power plant, located in Narva, will be fuelled with local oil shale. This agreement includes a first unit of 300 MW for an amount of EUR 540 million and an option for a second unit of 300 MW for EUR 410 million, which could be exercised by the customer within the next 18 months. The new power plant will supply an important part of the country's domestic electricity consumption and ensure Estonia's compliance with the EU LCPD emissions directive by substantially reducing emissions.

Under the terms of the contract, Alstom will design, manufacture, supply, install, test and commission the units. This includes the supply of final fuel handling, CFB boiler, steam turbine, flue gas treatment, automation & control systems and electrical systems for each unit.

Alstom has previously supplied enhanced dust removal systems (electrostatic precipitators) to Eesti Energia and performed three low-pressure turbine retrofits at the Narva power plants. Alstom is currently supplying new desulphurization systems for four 200 MW Narva plants and has also a long term service agreement with Narva since the year 2000.

MR Patrick Kron chairman & CEO of Alstom said that "This contract illustrates Eesti Energia's sustained trust and confidence in Alstom's technology and expertise in project execution. We are proud to support the modernization of Estonia's production fleet and to help it attain energy security."

Mr Sandor Liive CEO of Eesti Energia said that "We chose Alstom as a global leading company for complex EPC projects to deliver its CFB boiler technology to ensure cleaner, and locally sourced power for our growing customer base."