15 Mar 2002 – FLS miljø, a subsidiary of Danish industrial group FLS Industries, has today signed an Alliance Agreement for the complete supply of a flue gas desulphurization plant (FGD) at the Kenneth C Coleman station, situated in Hawsville, Kentucky, to serve a 500 MW power generation plant.

The contract value, which is in excess of DKK 500m ($59.5m), covers the turnkey supply of a single FGD unit serving 3 x 165 MW fossil fired power generators and includes for all associated limestone and gypsum preparation and handling plant together with the construction of a new 150m high chimney. The FGD plant will come on stream early 2004.

The FGD plant will be constructed for Western Kentucky Energy Corp. (WKE), which generates electricity at the Coleman station under a 25-year lease agreement with Big Rivers Electric Corporation. WKE is a part of Louisville Gas and Electric (LG&E) which is the largest generator of electricity in the State of Kentucky. LG&E is in turn wholly owned by Powergen plc. of the UK.

The order is placed under the format of an Alliance Agreement, which provides for profits and risks to be shared by both WKE and FLS miljø. The contract is fully cost reimbursable with the addition of pre-agreed overhead and profit. The order is included in FLS miljø’s sales forecast and the recently announced prospects for the company’s earnings.

The new FGD plant is based upon the latest “open spray” technology known as Double Contact Flow Scrubbing (DCFS), which removes harmful, sulphur dioxide and other pollutants from the gases created during the combustion of fossil fuels. The technology is presently being applied by FLS miljø in 3000 MW of FGD currently under construction and has been developed in conjunction with MHI of Japan.

The US FGD market is expected to grow by 5000 MW annually over the next 7-8 years as a consequence of the newly introduced “Four Pollutants” legislation put in place by the Bush Administration to reduce sulphur, NOx, particulates and mercury emissions.

Says FLS miljø a/s CEO, Mr Preben Tolstrup ,”This order confirms FLS miljø’s position as a significant player in the FGD market and enhances its prospects for participation in business related to air pollution clean-up in the US. The order will be managed out of the Bethlehem, PA offices of our US subsidiary FLS miljø Inc. with basic design and technical support being provided by FLS miljø’s Danish corporate headquarters. The cost reimbursable Alliance Agreement developed with the client, WKE is a benchmark contract that will continue to be our favoured method of undertaking such projects in the US”.

The FLS miljø Group is a supplier of boilers, turnkey power plants and air pollution control solutions to the power industry and a range of process industries.