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Doosan wins thermal coal power project in Philippines

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World Coal,

Doosan Heavy Industries & Construction has signed contract for a US$850 million project to construct the Subic Redondo thermal power plant in the Philippines with Redondo Peninsular Energy Corp., a private power company in the Pacific island nation.

This is the first major project Doosan has acquired in the country since winning the Cebu thermal power plant project in 2007, and comes only a week after the company acquired the Fadhili project worth US$884 million in Saudi Arabia.

The Subic Redondo project will consist of two units, and will be located some 130 km northwest of Manila. Doosan will be in charge of the engineering, procurement & construction (EPC) and will be executing the entire project, including the design, production, installation and operation of the plant’s equipment and facilities. Construction of Unit 1 will start by the year’s end and will be completed by December 2020, while work on Unit 2 will start next year.

The project will be adopting advanced 300 MW-class circulating fluidised bed (CFB) boiler technology for the first time in the Philippines, making Doosan the first Korean company to acquire a large-scale CFB boiler project overseas.

Unlike conventional boilers, the CFB boiler is known to be eco-friendly as significantly less pollutants, such as nitrogen oxide and sulfur oxide, are emitted, all owing to the constant circulation process leading to the complete combustion of coal. Since low-grade coal can also be used in CFB boilers, fuel costs can be reduced as well. Only a few global companies such as Foster Wheeler and Alstom have the advanced technology to develop large-capacity CFB boilers with an output of 300 MW or more.

Doosan secured cutting-edge CFB technologies through its German subsidiary Doosan Lentjes (formerly known as AE&E Lentjes), which it acquired in 2011. Starting with the recently won project, the company expects to be able to create huge synergy in the global CFB power market by leveraging the technical prowess of its German subsidiary.

Huntak Kim, CEO of Doosan Heavy Industries & Construction’s EPC BG, said: “Since the project involves introducing the first set of 300 MW CFB boilers in the Philippines, the client has conducted a thorough review of the contractors, and even visited an overseas power plant constructed by Doosan.”

He added: “Having earned recognition for our reliable technology with this project, it’s like we’ve received the green light to expand our presence in the Philippines’ market in the future.”

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