France's Alstom signs deal to build unit at Polish power plant

WARSAW Fri Dec 6, 2013 3:15pm EST

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WARSAW Dec 6 (Reuters) - France's Alstom signed a deal with power company Elektrownia Polnoc, owned by Poland's richest man Jan Kulczyk, to build the first of two coal-fired units at its planned power plant in the north of the country, Elektrownia Polnoc said.

"Elektrownia Polnoc is an element of the modernisation of Poland's power energy system. It will help to replace old and highly-polluting units," the Polish company said in a statement on Friday, without revealing the value of the contract.

Initially it had planned to build two 1,000-megawatts units at the cost of 12 billion-15 billion zlotys ($3.9-$4.9 billion), which would make it one of the biggest projects in Polish power sector.

Now Elektrownia Polnoc plans to start by building one unit, with a reduced capacity of 800 MW.

The company still needs to obtain necessary construction permits, after environmentalists challenged the project in court.

Power and engineering company Alstom is also engaged in another big power venture in Poland. It will coordinate a 11.6 billion zloty project to build two 900-MW units at a plant in Opole, owned by the country's biggest electricity producer PGE . ($1 = 3.0570 Polish zlotys) (Reporting by Stanislaw Skrzydelski; Editing by Anthony Barker)

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