September 12 (SeeNews) - State-owned power utility Elektroprivreda Srbije (EPS) said it has signed an agreement with Mitsubishi Hitachi Power Systems to build a flue gas desulphurisation unit at thermal power plant (TPP) Nikola Tesla A.
The contract value of the equipment and works for the construction of the unit is 167 million euro ($199.7 million), with more than 50% of the work to be done by domestic companies, EPS said in a statement on Monday.
The sulphur dioxide emissions in the largest Serbian coal-fired power plant will be reduced to a ninth of their present volume and will be aligned with all the environmental obligations which Serbia has taken, energy minister Aleksandar Antic said in the statement.
The flue gas desulphurisation system in Nikola Tesla A will be built for blocks A3, A4, A5 and A6 and will use a limestone wet scrubbing system. The deadline for completing the construction works is 42 months.
The project will be implemented by a consortium of Mitsubishi Hitachi Power Systems, Japan's Itochu and Serbian blue-chip construction company Jedinstvo [BEL:JESV].
The Serbian government plans to finance the project with a loan from the Japan International Cooperation Agency (JICA).