Alstom is to sign a deal with Estonian state power firm Eesti Energia this week to build a new power plant in the country.
Eesti Energia spokeswoman Marina Bachmann told AFP that the new power plant will be fired by oil from shale and will have up to two energy blocks of 300MW each.
Expected to cost about €750m ($1.2bn), the plant will be located next to an existing facility in Narva on Estonia's north-eastern border with Russia.
"The first block of the new power plant will have to be completed by 2015 and a decision on the second will be made in 2012," Bachmann said.
Estonia covers almost all of its energy needs using oil derived from its shale reserves.