Israel Chemicals (ICL) subsidiary DSW has entered into an agreement to develop a new 250MW combined cycle co-generation power plant in Sdom, in southern Israel.

To be built at an expected cost of $320m, the dual fired power plant will replace the current diesel fired plant at the site and will employ a gas turbine delivered by Siemens, which can also be powered by light fuel oil.

ICL Fertilisers CEO Dani Chen was quoted by Reuters as saying the construction of the new power plant will secure the company’s long-term energy needs.

"The plant’s use of a combined cycle cogeneration architecture utilising a Siemens gas-fired turbine will enable us to generate steam and electricity at exceptionally high efficiency, thereby lowering its cost while enhancing its environmental profile," added Chen.

Construction work is expected to begin in the third quarter of 2012 and Siemens will be responsible for the maintenance of the turbines.

The new facility will produce 330 tons of steam per hour and would address the power requirements of ICL’s production plants when it is operational in 2015.