Aker Kvaerner contract for green energy production

27 November 2006 - Aker Kvaerner has been awarded a contract for the supply of a large biofuel-fired boiler plant to Övik Energi AB, for its new power plant being built close to the town of Örnsköldsvik, Sweden. The contract value to Aker Kvaerner is approximately EUR 50 million.

Övik Energi AB is a community-owned, limited company, which produces district heating locally, as well as electricity for the national net. Övik Energi AB is now expanding its power plant to increase capacity. The new power boiler will also lead to a significant increase in the use of biofuels.

“This contract illustrates how the effective use of alternative fuels in energy production is growing. This choice of biofuels supports the EU’s ambitions to cut carbon dioxide emissions, and increase energy production based on renewable fuels rather than fossil fuels,” says Lennart Ohlsson, president of Kvaerner Power.

Kvaerner Power, part of the Aker Kvaerner group, will supply the power boiler, which utilises bubbling fluidized bed (BFB) combustion technology, and will burn biofuels. The boiler will have a steam capacity of 130 megawatts and steam data of 540ºC and 139 bar. The delivery includes engineering, procurement and construction of the power boiler, the boiler building, and the electricity & instrumentation systems. The new boiler plant will be ready in late 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:
Stefan Andersson, VP Supply Management, Kvaerner Power. Tel: +46 31 501384, Mob: +46 705 900323.

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, 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 24 000 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 50 000 employees and NOK 80 billion revenues. Aker owns 50.01 percent 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 S. Andersen

SVP Group Communications

Aker Kvaerner ASA

Contact via E-mail