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IST secures $15 million contract in Hawaii

Jun 21, 2007

Toronto, Ontario – June 21, 2007: Aecon Group Inc. (TSX: ARE) announced today that its wholly-owned subsidiary, Innovative Steam Technologies (IST), has been awarded a contract to supply two Once-Through Steam Generator (OTSG) units in Kailua-Kona, Hawaii. The contract is valued at approximately $15 million CAD.

Under the terms of the contract, awarded by Hawaii Electric and Light Company, IST will supply two OTSG units designed to recover waste exhaust heat from two 25MW gas turbines and use the heat to create steam for a steam turbine. The OTSGs will complement the existing open cycle plant and will provide most of the power for the south east side of the island. The units are scheduled to be delivered in August 2008.

This project marks the third major contract for IST in the Hawaiian Islands. Once the project is complete, IST will have installed a total five OTSG units in Hawaii. IST's success in Hawaii is largely attributed to customer satisfaction with the reliability of the units and IST's modular assembly process, which allows for most of the work to be completed at IST's shops, limiting the amount of work completed on site.

“We are extremely pleased to have been awarded this contract. It highlights the high levels of customer satisfaction among IST customers and demonstrates our successful track record in providing and installing OTSG in Hawaii,” said Bob Dautovich, President of IST.

This contract brings IST's total sale of OTSG units to 114 units in 14 countries world-wide. OTSG technology improves the efficiency of its customers' power plants and is better for the environment compared to many power generation sources.