Fertiliser and specialty chemicals maker Israel Chemicals' (ICL) subsidiary, DSW, has entered into an agreement to build a new $320m co-generation power plant at its work site in Sdom, southern Israel.
The 250MW dual-fired power plant will produce 330t of steam per hour and is expected to meet the electricity needs of ICL's production plants in future.
The new facility will replace the diesel-fired existing plant at the site, and will be equipped with gas turbines supplied by Siemens, which can also be powered by light fuel oil.
ICL Fertilisers CEO Dani Chen was quoted by Reuters as saying the construction of the new plant will secure the company's long-term energy needs.
He said: "The plant's use of a combined cycle cogeneration architecture utilising a Siemens gas-fired turbine will enable us to generate steam and electricity at exceptionally high efficiency, thereby lowering its cost while enhancing its environmental profile."
Work is expected to begin in the third quarter of 2012, with the plant scheduled for completion in 2015.