Thursday, August 20, 2009

Yokogawa receives power plant control system orders from Egyptian electricity holding Co. (EEHC)*1

by Namrata Merchant, YME

Yokogawa Middle East will provide the CENTUM integrated Production Control System (PCS) to five power plants in Egypt and carry out engineering, commissioning, and supervision of installation.

Egypt is planning to construct many new power plants as well as upgrade existing plants due to the rising demand for electric power driven by steady economic growth. Yokogawa aims to help satisfy this demand with its state-of-the-art control system by controlling the boilers and the balance of plant facilities in each of the following projects:

Power Plant NameTypeCapacity (MW)User or Buyer of Automation SystemConsultant for User
Cairo West Power PlantNew700Cairo Electricity Production CompanyPGESCo.*2
Nubaria III Combined Cycle Power Plant*3New750Middle Delta Electricity Production CompanyPGESCo.
Kafr El Dawar Power PlantNew110West Delta Electricity Production CompanyNot Applicable
El Atf Combined Cycle Power PlantNew750Middle Delta Electricity Production CompanyPGESCo.
Sidi Krir Combined Cycle Power PlantNew750West Delta Electricity Production CompanyPGESCo.


Yokogawa has received these five contracts for the following reasons:
1. The Company's extensive, global track record in providing control systems for power plants such as an 800 MW combined cycle facility in Spain.
2. Yokogawa’s highly-regarded power plant automation expertise and engineering capability.
3. Yokogawa’s global approach to project execution based on the One Global Yokogawa initiative which brings together the expertise and capabilities of the entire Yokogawa Group and is based on leading-edge technology.

Global demand for power plant control systems is predicted to grow approximately 20% between 2008 and 2010*4. While growth is expected to slow down in 2009, the forecast is for steady growth in the power plant control system market driven by rising demand for electricity in emerging countries.

Yokogawa entered the international power plant control market in 2001 and has been expanding this business by developing close relationships with customers and carrying out extensive sales, engineering, and service activities through its regional subsidiaries. Since the establishment of Yokogawa Middle East in Bahrain in 1990, Yokogawa has begun to experience steady growth in the Middle East. With the growth of its business particularly in the oil and petrochemical industries, the company has achieved a full-scale entry into the power market.

Encouraged by this success at securing orders in Egypt, Yokogawa will accelerate its global business activities in the Middle East and other regions, and plans to receive 30 billion yen of power plant system orders in fiscal year 2010.

*1. A governmental electric company which regulates the production, transmission and distribution of electricity throughout Egypt.
*2. Power Generation Engineering & Service Company - A consulting company operated by a joint venture between EEHC and Bechtel.
*3. A more efficient type of plant that makes combined use of gas and steam turbines.
*4 Source: Distributed Control Systems Worldwide Outlook, Market Analysis and Forecast Through 2012, published by the ARC Advisory Group on May 8, 2008.

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