Grand Bahama Power Company signs agreement to construct 52MW diesel plant

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Grand Bahama Power Company (GBPC) announced today the signing of the contractual agreement with Burmeister & Wain Scandinavian Contractor (BWSC) and MAN Diesel & Turbo (MAN) to construct GBPC’s new 52 MW HFO diesel plant.

This announcement follows news a few weeks ago that the GBPC and the Grand Bahama Port Authority had agreed to a new rate structure allowing the new plant to move forward without any increases in customer rates.

“The signing of this contract is another step in Emera’s plan to ensure improved reliability and stabilize rates for customers,” said Ray Robinson, Executive Chairman, GBPC. “The 35 MW of supplemental generation brought on island earlier this spring is providing short term relief to customers and the new plant will provide the longer term solution.”

The BWSC/MAN consortium have been contracted to build the island’s new diesel plant. The 52MW base-load plant will use six (6) new, state-of-the-art, high efficiency, and heavy duty, MAN diesel generator sets, to ensure increased reliability and stabilized fuel costs for the customers on Grand Bahama. In addition to the base load, 16MW of peeking units are currently being sourced.

Burmeister & Wain Scandinavian Contractor A/S (BWSC) is a Danish power plant engineering company with a history dating back to 1843 when Burmeister & Wain was one of the World’s largest ship building companies. In the early 1900’s B&W became a leading diesel engine manufacturer under a license from MAN, eventually becoming part of the MAN Group in 1980. BWSC was the turnkey contracting arm of the company and although now independently owned by Mitsui Shipbuilding & Engineering of Japan, has grown to be a global provider of tailor-made turnkey power plant solutions and a leading employer in Denmark.

MAN Diesel & Turbo SE of Augsburg, Germany, is the Worlds market leader for design and supply of large diesel engines for use in ships and power stations. Part of the MAN Group with roots as far back as 1758, MAN developed the first diesel with Rudolph Diesel in 1893.

During construction, supplemental generation will remain in place, until the new diesel plant comes on line. The new plant will be constructed on 6 acres of land adjacent to the current Steam Plant at an overall cost of 80 million dollars. Construction of the new plant will commence later this month and is projected to be completed in 2012, and is expected to generate 70 construction related jobs for local Bahamians.