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Siemens to supply coal gasification technology for the first time to Australia

Gasification technology developed by Siemens Energy has for the first time been selected for a project in Australia. Australian Energy Company (AEC) Ltd., an independent project development company, has acquired a license for two 500-megawatt coal gasifiers. The two gasifiers are destined for a fertilizer plant in Latrobe Valley, Victoria, where they are to be used to convert lignite to ammonia. In an adjacent plant the ammonia will be used to produce the fertilizer urea. After commissioning in 2012, the plant will have an annual production capacity of approximately 1.2 million tonnes of urea.

The fertilizer production plant is located in Victoria in the vicinity of the Loy Yang mine and will use the extensive lignite available there as feedstock for fertilizer production. As of 2015, a second phase of the project makes provision for the carbon dioxide generated during fertilizer production to be transported via a pipeline for storage in the carbon dioxide dumps in Bass Strait off the south coast of Australia.

"We have opted for Siemens gas gasification technology because it is easy to operate and very robust. It is particularly well suited to the grade of coal mined at Loy Yang," said Allan Blood, Chairman of AEC.

"Our technology is first choice for such applications because it was specially developed for the conversion of lignite containing salt," explained Guido Schuld, head of Siemens Fuel Gasification Technology.

"Siemens Fuel Gasification Technology is part of the Siemens Energy Sector. Siemens entrained flow gasification technology with its characteristic cooling screen has been continuously developed over a period spanning more than thirty years. The technology can be used for a wide range of fuels and is characterized by high conversion rates, high availability and low maintenance," said Schuld.

The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2007 (ended September 30, based on IFRS), the Energy Sector had revenues of approximately EUR20 billion and received new orders totaling around EUR28 billion and posted a profit of EUR1.8 billion. The Energy Sector had a work force of 73,500 at the beginning of fiscal 2008.

All figures represent the sum of the nonconsolidated figures for the Power Generation and Power Transmission and Distribution Groups and for the Oil and Gas activities of the Industrial Solutions and Services Group.

For more information about Siemens Energy Sector go to http://www.siemens.com/energy

Posted June 16, 2008

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