German giant Siemens AG said its energy sector has been awarded a contract from the US Northern California Power Agency (NCPA) for the supply of a power island.

The deal, worth around $140m, will be for a combined cycle natural gas power plant.

The plant will be located in Lodi, California, generating efficient and environmentally friendly electricity beginning in 2012, Siemens said.

The plant will have an output of 280MW and an efficiency of over 57%.