Keppel Seghers, the environmental technology division of Keppel Integrated Engineering (KIE), has secured a S$30 million contract to provide technologies and services for the first waste-to-energy (WTE) plant in Finland.

Awarded by Kotkan Energia which supplies power to the city of Kotka, the WTE plant will be able to treat 300 tonnes of municipal solid waste a day when it is completed in 2008.

Keppel Seghers will supply its state-of-the-art equipment and technologies to the plant. These will include air-cooled grate with bottom ash removal, boiler with fly ash removal and nitrogen oxide removal using SNCR (Selective Non Catalytic Reaction) technology to convert acidic nitrogen oxide components into harmless nitrogen. These will enable the plant to enjoy longer continuous operation, high waste throughput, and high steam production for power generation, improving productivity for the plant operator.

Mr Chua Chee Wui, Chief Executive Officer of KIE, says, "Securing the contract for Finland's first WTE plant for municipal solid waste is a very significant breakthrough for Keppel as well as the acceptance of WTE in this country. As Finland moves towards meeting European Union's ban on landfilling, WTE plants present a viable and environment-friendly alternative to waste treatment.

"As a leading solutions provider for WTE technology that enables recovery of renewable energy from solid waste, Keppel Seghers is well positioned to provide its expertise in EPC services, technology package, equipment supply and other related waste-to-energy services."

Currently, Keppel Seghers is undertaking WTE projects in Singapore, China and Italy. The company has an established track record of involvement in waste-to-energy projects in Europe, USA and the Asia Pacific for more than 40 years.

The aforementioned contract is not expected to have any significant impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2006.

Background Information

Keppel Integrated Engineering (KIE)
KIE is the environmental technology and engineering division of Keppel Corporation Ltd, a leading company in Singapore, which is listed on the Singapore Exchange Securities Trading Limited. KIE, through its subsidiary Keppel Seghers, provides technology and fulfillment services for the treatment of municipal solid waste, hazardous and medical waste, wastewater and sludge treatment, potable water, desalination and home filtration systems.

For further information, please contact

Teo Chang Ching
Senior Executive
Group Corporate Communications
Tel: (65) 64136426
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