Re Contract

RNS Number:5774J
Kvaerner PLC
6 September 2001


Kvaerner awarded US$150 million power project for Calpine

LONDON, 6 SEPTEMBER 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group, today announced that it has been awarded a US$150 million
construction contract by the Calpine Corporation, to build a 585 MW Natural
Gas-Combined Cycle Merchant Power Plant.  Kvaerner Songer will act as the
prime contractor for Calpine's Fremont Energy Center, located near Fremont,
Sandusky County, Ohio, USA.

Keith Henry, Chief Executive, Kvaerner E&C, said: "I am delighted that we have
been awarded this fourth power project for Calpine and, as one of their
preferred contractors, look forward to working with them on further
construction projects in the future.  We anticipate power projects will grow
to be over 20% of Kvaerner E&C's revenue by year-end."

Kvaerner Songer will execute this project on a union direct hire basis
supplemented by speciality subcontractors.  Major work activities being
executed by Kvaerner Songer's direct hire construction team including site
management, site clearance, underground utilities, all foundations, structural
steel, mechanical equipment installation, HRSG erection, interconnecting
piping, and electrical requirements.

With the exception of site-specific elements such as duct firing requirements,
commercially and technically this project closely mirrors Calpine's Ontelaunee
project in Reading, Pennsylvania, which is also currently being constructed by
Kvaerner Songer. 

Calpine will own and operate the plant, which is scheduled for completion in
mid-2003.

ENDS

For further information:  In the UK, Paul Emberley, Vice President, Group
Communications, Kvaerner PLC:  [phone] or
[e-mail] 
Vanessa Mourant, Communications Manager, Kvaerner E&C: [phone] or
[phone] or  [e-mail] 
or in the U.S, Terry Alderson, Kvaerner, Washington, PA: [phone] or
[e-mail]
or click on Group's web-site at http://www.kvaerner.com 

Notes to editors:  Kvaerner is a world-class Anglo-Norwegian engineering and
construction Group.  It meets the needs of its customers by adding value to
their business - through the provision of innovative, cost-effective solutions
- for challenges in the hydrocarbons, process and metals industries.  The
Group's activities are currently organised in two core business areas: E&C
(Engineering and Construction), and Oil & Gas.  Kvaerner is a Norwegian
registered business, but has a London, UK-based international headquarters. 
The Group has annual revenues in excess of US$6 billion, with some 35,000
permanent staff located in almost 35 countries throughout Europe, Asia and the
Americas.  The E&C business area of Kvaerner specialises in the provision of
process technology, design, engineering, project management, procurement and
construction to a number of industrial sectors on a worldwide basis: chemicals
and polymers, pharmaceuticals, oil and gas, water, energy, nuclear, minerals,
mining, steel and transportation.  Kvaerner's breadth of capability is unique
among its competitors.  It offers the complete range of services that are
necessary to realise global projects from conception to start-up.  These
services include a portfolio of advanced process technologies, research and
development, test work, a full range of engineering studies (including
bankable feasibility and environmental studies), total project management,
engineering and design, procurement, construction and maintenance services.   
Kvaerner E&C employs more than 9,000 people operating from over 30 offices
worldwide.