Alstom is to build two combined-cycle power plants using four GT26 gas turbines in central and southern Italy in a pair of contracts worth some €470 million.

An 800 MW power plant is to be developed at Gissi, in the Abruzzo region of central Italy in a deal worth €300 million with Abruzzoenergia. Along with the gas turbines, Alstom will also supply two heat recovery steam generators, air-cooled condenser systems, the control system and balance of plant.

The first unit is due to begin generation in November 2007 and the second unit in December 2007.

The second contract comes from Eurosviluppo Elettrica for the construction of a turnkey 800 MW cogeneration power plant in Scandale, in the Calabria region of southern Italy. The contract is worth around €340 million, of which Altom’s share is around 50% as part of a consortium. Along with the gas turbines, Alstom is to supply two steam turbines, four TOPAIR generators, two air-cooled condensers, the control system and balance of plant for the power island.

The project is expected to be completed in April 2008.

Associated long-term service contracts for both power plants are currently under negotiation.

The deals come as Alstom announces its full year results from 2005 – 2006 showing a net profit of euro 178 million, up from a €628 million loss on the previous year’s operations. With the forthcoming sale of its Marine Sector, Alstom is refocusing on its core businesses of power generation and rail transport. Power Turbo-Systems / Power Environment achieved an operating margin of 2%, after a negative margin of -2.3% in 2004 – 2005 while its Power Service division exceeded its target with a margin of 15.5%.

The company also claims that problems with GT24/GT26 gas turbines have now been resolved and new machines sold.