TEL AVIV, July 1 Fertiliser and specialty chemicals maker Israel Chemicals (ICL) plans to invest $320 million in a 250 megawatt power plant fuelled by natural gas at its Sdom work site in southern Israel.
The combined cycle cogeneration plant will replace the plant built in 1995 that uses diesel generators powered by heavy fuel oil and its output will be significantly higher than the existing plant, ICL said on Sunday.
It is designed to supply Sdom's energy needs for the next 20 years while reducing the company's energy expenditures and protecting the environment.
The new plant is based on a gas turbine supplied by Siemens, which can also be powered by light fuel oil, if necessary, and a steam turbine capable of generating 330 tonnes of steam per hour. Construction is scheduled to begin in the third quarter of 2012 and completed in the second half of 2015.
The gas turbine will be maintained by Siemens under a long term service agreement.
"The construction of our new power plant is an important strategic step that will secure our long-term energy needs while moving us forward in our pursuit of ever-higher achievements of environmental protection, safety and sustainability," Dani Chen, CEO of ICL Fertilisers, said.
"The plant's use of a combined cycle cogeneration architecture utilising a Siemens gas-fired turbine will enable us to generate steam and electricity at exceptionally high efficiency, thereby lowering its cost while enhancing its environmental profile." (Reporting by Tova Cohen)