Aker Kvaerner power boiler island contract for coal beneficiation plant in USA

29 June 2006 - Aker Kvaerner has been awarded a contract for the supply of a power boiler island to KFx Inc. which is developing its coal beneficiation facility at their Buckskin plant in Wyoming, USA. The contract value to Aker Kvaerner is approximately EUR 60 million.

KFx Inc. will use the new power boiler to produce steam for KFx’s coal beneficiation process, which utilises heat and pressure to physically and chemically transform high moisture, low heating value coals, into more energy efficient, lower emission fuel.

Kvaerner Power, part of the Aker Kvaerner group, will supply the coal-fired power boiler to KFx’s Buckskin plant. The power boiler will use circulating fluidized bed (CFB) technology and will have a steam capacity of 88 kilograms per second. The new boiler island will be ready in December 2008.

ENDS


For further information, please contact:

Investor relations:
Lasse Torkildsen, VP Investor Relations, Aker Kvaerner, Tel: +47 67 51 30 39

Suppliers:
For further information about sourcing and potential subcontracts for this project, please contact:
Juha Vakkari, E&C Supply Management. Tel: +358 400 62 44 19

KFx Inc. offers combined energy, environmental and economic solutions to coal-fired power generating facilities and industrial coal users in the United States and internationally. The K-Fuel(TM) process uses heat and pressure to physically and chemically transform high moisture, low-Btu coals, such as subbituminous coal and lignite, into a more energy efficient, lower-emission fuel. A co-benefit of the K-Fuel(TM) process is the removal of significant amounts of impurities, including mercury, and the reduction of emissions of sulfur dioxide and nitrogen oxide.

AKER KVÆRNER ASA, through its subsidiaries and affiliates (“Aker Kvaerner”), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.

The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 41.4 billion and employs approximately 21 000 people in more than 30 countries.

Aker Kvaerner is part of the Aker Group (www.akerasa.com), a leading multi-industry powerhouse with more than 40 000 employees and NOK 62 billion revenues. Aker owns 50.01 per cent of Aker Kvaerner, and the group is also a major European shipbuilder and a significant participant in the fisheries industry.

Kvaerner Power is a forerunner in fluidized bed combustion for pulp and paper industry and power producers. Approximately 200 power boilers in operation testify to the expertise in fluidized bed technology with demanding fuels. Kvaerner Power is also the leading chemical recovery equipment supplier in the world with its 300 recovery boilers and 300 evaporation unit deliveries. Kvaerner Power has designed and manufactured the world’s largest recovery units and biomass-fired fluidized bed boilers. Kvaerner Power with main operations in Finland, Sweden, USA and Brazil has annual revenues of approximately EUR 500 million and it employs 1600 people worldwide.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com

Contact Information

Torbjørn Andersen

SVP Group Communications

Aker Kvaerner

Contact via E-mail