Press archive 2006

First award of a turnkey coal-fired power plant in Germany

Oberhausen, 20. November 2006 Hitachi Power Europe GmbH (HPE) has booked the order for the turnkey construction of Unit 10 at the STEAG Aktiengesellschaft power plant site in Duisburg-Walsum. The scope of supply includes steam turbine and generator, the utility steam generator, environmental engineering and the requisite civil engineering including cooling tower. Complete plant planning, the basics of which represent STEAG's concept planning, is also in the hands of the renowned energy plant constructor. The customer is a project company made up of STEAG Aktiengesellschaft (Essen) with a 51% stake and EVN AG (Maria Enzersdorf), the Austrian energy and infrastructure company, with 49%.

The total investment volume is around EUR 800 million with most of it for the delivery and construction of the new power plant. The Walsum plant is the first one in Germany ordered as an "integrated package".  HPE is responsible for all components up to commissioning and handover of the entire power plant. An ultra-modern coal-fired power plant unit with an installed 790 megawatt gross capacity is to be created in Duisburg-Walsum. When finished, the new unit will be the most up-to-date coal-fired power plant in Germany. Commercial operations are to start in 2010 – some three years from the start of construction. With a net efficiency in excess of 45%, the Walsum Unit 10 is clearly far ahead of other modern plants in Germany and thus contributes to resources conservation and CO₂ emissions reduction.  Moreover, the power plant unit will be fitted with highly effective emission-reduction systems (De-NOx equipment, electrostatic precipitator for dust extraction, flue gas desulfurization equipment). The limiting values will be kept to at all times.  Noise emissions will also be cut to a large extent.

This new power plant will have considerable positive employment effects for the energy state of North Rhine Westphalia and, in particular, for the Ruhr region. Since numerous power plant component manufacturers have their head offices in the Rhine/Ruhr area, a considerable slice of the investment sum will go to strengthening the regional economy. Much of the EUR three-digit million infrastructure volume required for instance on roads, road works and earthworks will be undertaken by companies in the region. Over 1,000 people will be working on the project site at peak periods.

 "An order booked for a turnkey coal-fired power plant is confirmation of the attractiveness of our range of supplies and services", emphasizes HPE Managing Director Klaus-Dieter Rennert. "Not only individual components have fulfilled customer expectations. The technological aspirations and low price of the complete package also went down well." The contract award is also proof of the effectiveness of the strategy embarked upon - a strategy extending the classic utility steam generator, components and gas–fired power plants product program under the Hitachi Group umbrella with turbines and turnkey coal-fired power plants. "We have thus grown into a provider of all-in system solutions for power producers. We provide customers with all the sophisticated key components for a power plant from a single source." Along with the strong technology position, a further distinct competitive advantage is the financial clout of the Hitachi Group which simplifies project financing aspects.

The company has developed admirably since the takeover by the Hitachi Group in 2003. The workforce has practically doubled over the past three years. Mr. Rennert stressed that this showed the importance that energy plant construction has for North Rhine Westphalia and economic development in Germany. He said that Germany could benefit appreciably from the impending capital expenditure in power plant construction. "The development of capacities in all fields of new power plant construction brings about strong positive impulses for the economy and makes a significant contribution to the upsurge in economic activity". This is something that Mr. Rennert is convinced of.  He said it was also important that the power plant construction industry both created and maintained industrial jobs at high-grade component suppliers. 

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Oberhausen, 30.10.2006 Hitachi Power Europe GmbH has booked the order from E.ON Kraftwerke GmbH (Hanover) to build four utility steam generators for new power plants. The order has a total value of over EUR 1.2 billion. The first unit will be at Datteln. Hitachi Power Europe (HPE) will supply three more 1100 MW steam generators to E.ON Kraftwerke GmbH. The delivery of three more steam generators is subject to the approval of the customer's supervisory bodies on building the associated power plants.

Hitachi Power Europe obtained the order against stiff international competition. "This convoy represents the reference for the renewal of the European power generation system in this class", stressed Managing Director Klaus Dieter Rennert during contract signing, "against which future competitors will be measured." The plant has a 46% efficiency and, as such, Datteln is 5 percentage points up on coal power plants in operation and even 10% up on the average efficiency of the European power generation system (coal).

Imported coal is to be used as the fuel. The plant on being commissioned in the spring of 2011 will be the largest in Europe; super-critical steam parameters ensure the best-possible fuel utilization and both minimize emissions and the use of resources.  The steam will be heated to 600°C at a 285 bar pressure. Almost 3,000 tons of steam an hour will be supplied to the turbine. This huge performance data is possible thanks to the excellent engineering expertise of the Hitachi Power Europe team and the use of high-tech materials which have already proven their suitability for these challenges.

The power plant convoy has a host of benefits for both the manufacturer and operator.  The experience gained from building the first unit goes into the following plant. Successor plants can also make use of maintenance concepts and operating optimization. The lack of capital expenditure in the generation system has meant that the last convoy was built in Germany in the 1960s. "The convoy awarded illustrates the confidence that the customer has in the technological competence of HPE", said Rennert, "and in the quality of the handling." He went on to say that this was an important criterion in power plant construction. It also applied just as much to work safety on the site made possible by an experienced and skilled team. Moreover, the past had shown that a further plant brought about utility steam generator optimization - even during construction and commissioning. Mr. Rennert says it so succinctly: "Enhanced quality from shorter construction times."

The customer was obviously more than satisfied with HPE's production and material acquisition concept for the convoy. A challenge in view of the globally scarce resources here. "Our qualified supplier network developed over the years provides us with substantial benefits", explains Managing Director Rennert. "We can provide a structured and calculable acquisition of capacities over a lengthy period. Something of course that also benefits our customers."

Building is to begin at Datteln in the spring of 2007. The plant will be "under steam" for the first time in the summer of 2010 and commercial operations will start in the spring of 2011. The required approval procedures are ongoing at the moment. Hitachi Power Europe's scope of supply includes the steam generator plus components. They comprise the de-NOX unit, coal bunkers and five coal mills to be manufactured by an HPE subsidiary in Oberhausen. HPE is also responsible for setting up and commissioning the utility steam generator.

At peak periods just under 3,000 people will be working at the Datteln power plant site. The new plant will have considerable positive employment effects for the energy state of North Rhine Westphalia and, in particular, for the Ruhr region. Since numerous power plant component manufacturers have their head offices in the Rhine/Ruhr area, a considerable slice of the investment sum will go to strengthening the regional economy.

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Oberhausen/Germany, 20.09.2006 One of the world's most modern cogeneration gas-fired power plants is to be built in Malmö, Sweden. E.ON Sverige has placed the order for building the plant with the Hitachi Power Europe GmbH (HPE) and GE Energy consortium, with HPE as the consortium leader. The order is valued at around 220 Mio EUR. The plant has an electrical capacity of 440 megawatts (MW) and additional 250 MW heat extraction. Under combined operations, 89% of the gas energy will be utilized – an absolute peak figure in the world. The new plant will lead to old coal-fired plants in Scandinavia being taken off the grid. This, in turn, will reduce carbon dioxide emissions by around 1 million tons a year. The result is a significant contribution by E.ON Sverige to global climate protection.

HPE will have completed the power plant in just over two years from contract signing – take over is planned at the beginning of 2009. The electricity will be fed into the Scandinavian grid; the heat will be used on the industrial site and also supplied to the Malmö district heating grid.  

Most of the scope of supply of consortium leader Hitachi Power Europe is in the demanding planning of the turnkey plant - one which is to be integrated into an existing building in an industrial and power plant site. These kind of power plants individually tailor-made for a particular site are a specialty of HPE engineers who can point to numerous references here. In contrast to designing a power plant on a greenfield site, successful planning of the turnkey plant depends on having detailed knowledge of both customer requirements and those of the special site conditions.

GE Energy will be contributing one of the most up-to-date and efficient gas turbines called 9FB. HPE is responsible for plant construction and commissioning. 

Following take over, this modern power plant will make a significant contribution to the assured and environmentally-compatible supply of energy in Scandinavia. Around 3 terra-watt hours of electricity and 1 terra-watt hour of heat will be supplied to the grids every year.

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Oberhausen, 5 May 2006.  The ground-breaking has been done. NRW economics minister Christa Thoben, Duisburg's Mayor Adolf Sauerland and Kölbl Kruse GmbH, the Essen project developer and investor, symbolically did the ground-breaking together with Hitachi Europe representatives. This means another building site in Duisburg. Until mid-August 2007 Kölbl Kruse will be building the new corporate head offices of Hitachi Power Europe GmbH (HPE) at the inner port together with Hochtief Construction AG..

Continuous HPE growth necessitates move
HPE is rapidly growing thanks to excellent competitive products, a buoyant worldwide demand for economical and environmentally-friendly power plants and a strong technological position. HPE is responsible for the markets in Europe, the former CIS states, Africa and the Near and Middle East. "We plan and build turnkey plants and key components for fossil-fired power plants including modern flue gas cleaning equipment, utility steam generators as well as gas and steam turbines. Our workforce increased by over 50% from company beginnings in 2003 up to the start of 2006. This dynamic growth has made it necessary for the company to move", says Klaus J. Schmitz, Managing Director of Hitachi Power Europe GmbH, at the start of building the new "Hitachi Power Office" at the inner port. The just under 600 employees of the company should be moving into the seven-storey office property in the second half of 2007.

Key data: Hitachi Power Office
There is room for 200 cars on two levels in the underground car park; a further 140 can park outside. In keeping with the design of Hagen architects Bahl & Partner, project developers Stephan Kölbl and Dr. Marcus Kruse will realize another architectural highlight right next to the Five Boats office complex on the north bank – due particularly to its striking silver color. Aluminium outside and steel elements within will be like "a silver thread" going through the building.

Urbanistic feature on the north bank
"Within just 15 months we want to build the Hitachi Power Office and, at the same time, fill the gap with an attractive property with 20,000 sq. m. of office space“, announce project developers Stephan Kölbl and Dr. Marcus Kruse. "The building will plug new development on the north bank of the inner port to the west with an urbanistic feature." The Essen duo have already realized two new building projects at the inner port (Five Boats, Inner Port office block) and converted the listed "Speicher Allgemeine" warehouse into a modern office building.

Economics minister welcomes choice of the site
From numerous properties on offer within a 30 km radius of Oberhausen, the inner port proposed by the Duisburg economic development agency won the day. "I am glad that Hitachi Power Europe GmbH has opted for Duisburg. Thanks to the support by NRW and the EU, the inner port is a model example of successful structural transformation. It has developed into Duisburg's favorite office location and one of the most attractive addresses in the Ruhr", says Economics Minister Christa Thoben. The Minister went on to say that the Hitachi subsidiary was contributing to NRW maintaining its leadership in power plant technology. "The competence of the company in developing and building efficient, environmental-friendly power plants is of immense importance for the coming renewal of NRW's power generation system."

A lively urban quarter alongside the water
The 1.8 km long Duisburg inner port used to be the cereal and timber harbor. It has been developed into a lively urban quarter by converting former warehouses and constructing new buildings on the basis of Norman Foster's master plan. Work, living and leisure are all linked to each other. The area has become a top office address in the Rhine/Ruhr region. The rents are the highest in the Ruhr and major companies such as alltours, Novitas Vereinigte BKK and the Fasselt & Partner audit company have all had their head offices constructed here.

Mayor Sauerland backs favorable climate for investment
"Exemplary for the excellent interaction of industry, business promotion and administration in Duisburg", that is how Mayor Adolf Sauerland describes the success had with industrial settlement. "One wheel interacts with the other when it is a matter of realizing investments in the city. Perspectives are collectively revealed here in the shortest of times, obstacles removed and companies supported by everyone" – this was the thank-you of the municipal head to all those involved. 

New era begins: History of the plot of land
Sauerland also means the commitment shown by Duisburg's industry. To this end, the settlement of HPE on the 4,000 sq. m. of land marks the beginning of a new era. Two rundown warehouses and a small office building had remained vacant for 20 years up to 2004 when the Duisburg SGE Stüdemann-Grundbesitz-Entwicklung GmbH company set up a property company. It purchased the plot of land in a sale by court order, thus setting the points for future marketing. Just 18 months after the auction a beautiful swan is to emerge from the ugly duckling  - one nicknamed by the press as "the dingy warehouse".

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Prepared for accelerated growth

• Increase of registered capital
• Complementation of product portfolio
• New shareholder structure

Oberhausen, 1 April 2006 Babcock-Hitachi Europe GmbH is changing its name to Hitachi Power Europe GmbH as of 1 April 2006. The shareholder structure also changes from this date. In future Hitachi Ltd will have a majority 60% holding and Hitachi Europe Ltd., with head offices in London, will have a 26% interest in the company. Babcock-Hitachi K.K. (Japan), the sole shareholder to date, will have the remaining 14%. This is accompanied by a EUR 18 million increase in the registered capital to EUR 48 million.

Innovative and pioneering products, which have already clearly proved their success in practice, will be complementing the range of supplies and services. As of 1 April 2006, turnkey coal-fired power plants and steam turbines will be additions to the product portfolio which extends from key components for fossil fuel-fired power plants, such as pulverizers, firing systems, environmental engineering systems and utility steam generators, to gas-fired power plants and environmental equipment.

These constructive changes are being used by Hitachi Power Europe GmbH to continue its growth - one based on staff expertise and dedication and a century plus track record in power plant engineering. Hitachi Power Europe is responsible for the markets in Europe, the former CIS states, Africa and the Near and Middle East.

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Oberhausen, 16 February 2006. The excavators have been at work since
the start of the year. In the Lower Rhine brown coal mining area at Neurath,
RWE Power AG is constructing power plant blocks F & G each with a
capacity of 1100 MW and an efficiency of up to 43%. Babcock-Hitachi
Europe GmbH (BHE), as the leader of a consortium, is supplying both the
steam generators of the power plant. The value of the order for the
consortium is around 660 EUR million with roughly half falling to BHE and
associated companies. The new Neurath brown coal power plant with a
2240 MW overall capacity represents the current state-of-the-art for steam
generator technology across the world. Both units going on stream in
2009 and 2010 are the world's largest steam generators with the highest
steam mass flow, with super-critical steam pressure and the highest steam
temperatures ever realized for brown coal.
This modern central power plant is making a significant contribution to
climate protection. CO2 emissions will be considerable reduced compared to
existing older plants. The dimensions of the project are also reflected in the
effects on employment. Up to 4000 people will be working on the power
plant directly on the site or with suppliers in the hectic building phase. Klaus-
Dieter Rennert, Deputy Chairman of the Babcock-Hitachi Europe GmbH
Board of Directors, also sees symbolic significance in this order: "Building
the double units marks the real start in modernizing the German and
European power generation system."
The company will be playing a major role in this renewal process thanks to
the skilled and highly motivated BHE team. "We have increased our
workforce by 50% over the past two years and we will continue to grow",
Rennert also said.
He added that BHE could also fall back on extensive resources in Europe
and throughout the world. "We supply environmentally-compatible and
economic power plants", emphasized Managing Director Rennert, "which
are optimized for the European operating conditions and of a best-possible
quality that our customers have become used to".
Helping in this are the very many young engineers who BHE has been able
to recruit. Managing Director Rennert looks upon the above-average
successes on the competitive junior staff market as a reward for the
intensive cooperation with universities. "We concern ourselves at an early
stage with junior staff." That is, for instance, with the chance to go on an
internship at BHE to accompany one's studies or with the chance to
complete a dissertation with the support of the company. Renner believes
that the junior staff certainly also appreciate the favorable prospects and for
this reason the long term attractiveness of the company. His summary:
"Young people should again become more interested in engineer training in
mechanical and plant engineering. It is a highly exciting field promising an
assured and interesting job with excellent career prospects."

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As happened last year Babcock-Hitachi Europe GmbH (BHE) again donated a sum all told of EUR 6,000 to three relief agencies. "This year we have again done without Christmas presents for our business associates in favor of making donations to charitable agencies – something very much reflecting the thoughts of our customers" – this was the background to the campaign as explained by Managing Director Klaus-Dieter Rennert.

The three donation checks were handed over yesterday at the firm's head offices on the Duisburger Strasse as part of the „Oberhausen New Year's Brunch at BHE“. Just as last year Federal and state government politicians from Berlin and Düsseldorf, representatives of the Federal German and "Land" governments as well as local politicians from Düsseldorf were informed about the successful trend in business at the New Year's Reception. Each of the representatives of "Tafel Oberhausen", „Friedensdorf International" and "Kinderdorf Rio" received a check for EUR 2,000.

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