Alstom to develop $525 million plant for industrial zone

Hong Kong is to receive a power boost with the news that Keppel Energy has started work on a 500 MW station costing $525 million. The plant is located on Jurong Island in the new Tembusu sector, close to potential industrial customers.

Alstom is developing the plant, which is scheduled for completion in the first quarter of 2007, under a $360 million construction contract. The plant will be operated by Keppel Merlimau Cogen (KMC) which obtained a $525 million bank loan to fully cover costs.

A service corridor will also be set up so the imported natural gas-fired station can also supply utilities such as steam, cooling water and demineralised water.

Despite overcapacity in Singapore, Keppel expects to have more than 70% of capacity contracted.