Alstom signs several Memorandums of Understanding to further its presence in Russias nuclear and fossil energy market

Press release, 9 December 2010:

Alstom today signed several Memorandums of Understanding (MoUs) to further
its presence in Russias
growing nuclear and fossil energy market.

 

MoU to
strengthen Alstom Atomenergomash cooperation in Russian nuclear and fossil
energy market through a local manufacturing facility.  

The AAEM JV
created in 2007 was Alstoms first step to form a strategic alliance in Russia to
manufacture the turbine islands of Russian nuclear power plants. Under this new
MoU, Alstom and its partner AEM agree to set up a local facility for AAEM to
manufacture Alstoms ARABELLE^TM nuclear steam turbines. In addition, the
factory will also produce large steam turbines for fossil fuel applications.

The JV will
also extend its business beyond turbine islands to offer Emergency Diesel
Generators, another key component in nuclear plants and retrofit solutions for
ageing nuclear power plants.

 

MoU for
strategic cooperation and partnership between the JV AAEM and Inter RAO-Worley
Parsons (IRWP) JV  

AAEM signed
a MoU with the IRWP JV to establish a cooperation to jointly design and deliver
turbine islands to complement Russias
VVER reactor based nuclear power plants.

Under the
terms of the MoU, AAEM and Inter RAO-WorleyParsons plan to cooperate for the
construction of the turbine hall of nuclear power plants behind Russian
technology reactors whereby AAEM will deliver the key components of turbine
hall, known as turbine generator package and IRWP will act as the general
designer.

 

Strategic
MOU to consider entry of Inter RAO UES in AAEM capital  

Rosatom,
the Russian state atomic energy corporation, INTE RAO UES and Alstom signed a
MoU to develop new power equipment. The document was signed by Sergey Kirienko,
Director General of Rosatom, Boris Y. Kovalchuk, Chairman of the Management
Board of INTER RAO UES and Patrick Kron, Chairman and CEO of Alstom. This
agreement will help to pool resources of the three companies, each of them
being market leader in its market niche.

Companies
are willing to develop their cooperation for construction of thermal power
units. Considering the need for localised state-of-the-art power generating
equipment, the three companies expressed their wish to extend the range of
equipment produced by AAEM to steam turbines for coal fired units. Furthermore
Alstom and Atomenergomash are considering opening AAEM capital to Inter RAO. This
will be an opportunity for Alstom to further participate through AAEM in Russias
steam power plant market.

Signing the agreements Patrick Kron, Chairman and CEO
of Alstom, said: Alstom is proud to be forming strategic partnerhsips to bring
its leading nuclear technology to Russia. A local manufacturing
facility will allow us to build our leading nuclear turbine island components
and steam turbines in Russia
and is a further commitment from Alstom to serve Russias growing energy needs. Through our extended
partnership with Atomenergomash and thewith Inter RAO-WorleyParsons, we will eventually
develop an optimised turbine island offering for Russia and offer best in class
service both in terms of design technology and project execution.

Boris Y. Kovalchuk, Chairman of the Management Board
of INTER RAO UES said: We highly estimate the agreements reached by INTER RAO
UES and Alstom that are aimed at development and renovation of Russian power
engineering. Without any doubt they may be considered an example of successful
collaboration in the sphere of transfer and implementation of advanced
technologies in Russia.

Russia is rapidly expanding its nuclear base. Currently 11 %
of the installed base is nuclear which contributes to 17% electricity
production in overall Russia
and 40% in Russian Europe, where most of the nuclear power plants are located. The
ageing nuclear base has pushed the state to fund new nuclear and retrofit
programmes. Ten large reactors are under construction and seven replacement
plants are planned. By 2016 ten new reactors totaling at least 9.8 GW should be
operating. Further reactors are planned to provide 21.7 GW nuclear power
capacity, increasing to 43 GW by 2020.

The core of the planned nuclear development is the
VVER reactor. Larger and safer than the preceding reactor models, it requires
proper development of the associated turbine island equipment and solutions to
match its high performance, reliability and maintenance requirements.

Alstoms conventional island offering based on the
ARABELLE steam turbine meets these criterion perfectly. Widely acknowledged as
the most advanced in the market, the ARABELLE steam turbine offers the full
power output range (900 to 1,800 MW) with outstanding efficiency. The ARABELLE
steam turbine is complemented by The GIGATOP 4-pole turbogenerator, which at
almost 99%, offers the highest efficiency in the market. These products are
central to Alstoms turbine island offering and their technical excellence have
contributed to Alstoms market leadership in nuclear.

 

About Alstom   

Alstom is a global
leader in the world of power generation, power transmission and rail
infrastructure and sets the benchmark for innovative and environmentally
friendly technologies. Alstom builds the fastest train and the highest capacity
automated metro in the world, provides turnkey integrated power plant solutions
and associated services for a wide variety of energy sources, including hydro,
nuclear, gas, coal and wind, and it offers a wide range of solutions for power
transmission, with a focus on smart grids. The Group employs 95 000 people in
more than 70 countries, and had sales of over 23 billion in 2009/10 (Pro forma figures)

 

Alstom Press Contacts: 

Philippe Kasse,
Stéphane Farhi (Alstom Corporate) - Tel +33 1 41 49 29 82 /33 08

philippe.kasse@chq.alstom.com; stephane.farhi@chq.alstom.com
 

Sapna Lalwani (Alstom
Power) Tel +41 56 556 33 42 sapna.lalwani@power.alstom.com  

 

Investor
Relations : 

Emmanuelle Châtelain, Juliette Langlais (Alstom
Investor Relations) - Tél : + 33 1 41 49 37 38 / 21 36

emmanuelle.chatelain@chq.alstom.com, juliette.langlais@chq.alstom.com  

Website: www.alstom.com/power