Iberdrola has awarded Castellon, Spain-based Alva a E1.1 million contract to supply and assemble equipment for its Castellon 4 combined cycle plant.

Alva beat bids submitted by five other firms to win the contract for the 850MW Castellon 4 plant. The company will supply and install six tanks at Iberdrola’s new gas plant: two for demineralized water, one for potable water, one for condensates, another for storing diesel and one more for receiving diesel.

The Castellon 4 plant, which will be located next to the first combined cycle plant that Iberdrola commissioned in Spain in mid-2002, is anticipated to begin operating at the end of 2007.

The company ended last year with 4,800MW of managed power through combined cycle plants in Spain. This year it aims to reach 5,600MW of power by incorporating the Escombreras plant (800MW), which has been in the testing phase since July, and in 2007 it will exceed 6,400MW with the commissioning of Castellon 4.

At the time of announcing the Alva contract deal, Iberdrola also revealed that its combined cycle generation in Spain has grown by 18.1% throughout the first half of the year, up to 7,379kWh, which represents 22.5% of the company’s total production in Spain, more than coal and fuel oil plants combined.