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December

Abengoa delivers El Sauz Power Plant to Comisión Federal de Electricidad in México

December 16, 2003

Sevilla, December 15th, 2003.- Abengoa, through its subsidiary Abener Energía, S.A., has delivered to Comisión Federal de Electricidad, Mexican public electric utility, the El Sauz Thermal Power plant, whose power generation has been increased in 139 megawatts, and has been converted from "simple cycle" type to "combined cycle" process. The complete investment has exceeded 113,8 million USD dollars, and during the twenty seven months period of implementation has generated an average of 350 job positions.

The power plant, that is located at Pedro Escobedo (Querétaro, México), was originally equipped with two gas turbines and two alternators that provided a total power of 300 MW, and has been increased with a steam turbine, that allows the plant to provide a total combined power of 440 MW.

According to Mr. Alfonso González Domínguez, President of Abener, "this contract constitutes the strengthening of Abener as a leader on the segment of the market and represents a clear representation of the company's profile, that consists on delivering this integrated services to the electric sector". Abener is currently executing for Comisión Federal de Electricidad another similar project of similar characteristics, that was awarded last July, with an amount of 77 million US dollars, for the construction and delivery, under "turn-key" basis, of a Repowering of the Hermosillo Thermal Power Plant, located North-east from Hermosillo City, Sonora State (Mexico).

This project was award to Abener through an International Public Bid Process, and was executed under the "Financed Public Work" schema, on a "turn-key" basis. Because of that, Abener has supplied during the execution of work all required material and serviced for the plant to be constructed and commissioned, including the financial charges.

The new turbine is fed from steam generated in new recovery boilers installed under this contract, from the heat obtained from the gas turbines exhaust gases. The total efficiency of the power plant is therefore substantially increased, as this extra power is obtained with the same gas consumption. The air condenser perceptibly reduces the water consumption of the power plant in relation to the conventional cooling tower, allowing for a minimized environmental impact.

Besides the functional systems and units aforementioned, the plant has been provided with the necessary auxiliary systems for the suitable operation and protection of the new steam turbine, such as water treatment plant, zero spill system, fire detection and extinction systems, and other.

Abener, Abengoa's Industrial Engineering and Construction business unit subsidiary, is working nowadays in one more contract in Mexico, with expected commercial operation to be reached by May 2005.

Abengoa, an industrial and technology company with worldwide operations, provides solutions for Sustainable Development, the Information and Knowledge Society and the Creation of Infrastructures. The Company is capitalized at over 500 million euros (31/12/02) and is listed on the Madrid Stock Exchanged. Abengoa operates in four primary areas: Bioenergy, where it is the second largest worldwide producer of bioethanol; Enviromental Services, where it is a European leader in various industrial waste market segments; Information Technology, where it has achieved global recognition and has operations in Europe, North America and Asia; and Industrial Engineering and Construction, where it is leader in Spain and Latin America. Sales during 2002 have exceeded 1.500 million euros with a net profit of 43,5 million euros.



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