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IST awarded four contracts totalling $40 million

Nov 1, 2010

Cambridge, Ontario – November 1, 2010: Aecon Group Inc. (TSX:ARE) announced today that its wholly-owned subsidiary Innovative Steam Technologies (IST), has been awarded four contracts totalling $40 million to supply its Once-Through Steam Generators (OTSG), its Enhanced Oil Recovery (EOR) technology, and silencing exhaust systems internationally.

Under the terms of the first contract, IST will design and fabricate six replacement 50 mm Btu/hr Steam Assisted Gravity Drainage convective sections for an EOR application operated by Petroleos de Venezuela S.A. (PDVSA).  Delivery of the units is set for November 2010. The facility is in Lake Maracaibo, Venezuela and represents IST’s third EOR contract with PDVSA.

Under the terms of the second contract, IST will design and supply an OTSG unit for Termica Colleferro Spa in Colleferro, Italy. The OTSG will be installed in a new high-yield cogeneration power plant to recover waste heat from a new gas turbine, and provide steam for both a steam turbine generator, as well as industrial processes in the local area.  This is IST’s fifth unit in Italy and is scheduled for delivery in February 2011.

Under the terms of the third contract, IST will design and supply three OTSG units for Chugach Electric Association and their partner Anchorage Municipal Light & Power, in Anchorage Alaska. The units will be used to capture waste heat from three gas turbines at the Southcentral Power Project, with the recovered steam converted to generate extra power without additional fuel.  The units will be equipped with emissions-controlling equipment designed to minimize the power plant’s impact on the environment.  The units are scheduled for delivery in June 2011.  This is the second project for IST in Alaska and will bring their installed count to four in the state. 

Under the terms of the fourth and most recent contract, IST will design and supply two silencing exhaust systems for the 400 MW York Energy Centre in the Township of King, Ontario.  The systems will be designed to meet very stringent sound and assembly requirements to minimize the impact at the natural gas-fired electricity generation site. The systems are scheduled for delivery in March, 2011.    

“Our goal is to assist our customers in becoming more efficient by providing quality, effective products designed to meet their individual needs, and to date we have sold over 160 units worldwide,” said IST President, Bob Dautovich. “We are very pleased our EOR business is gaining traction in major heavy oil markets around the globe.”

Innovative Steam Technologies is a world leader in the design and fabrication of Once-Through Steam Generators and is a wholly-owned subsidiary of Aecon Group Inc.

Aecon Group Inc. is Canada’s largest, publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally. Aecon is pleased to be recognized as one of the Best Employers in Canada as published by Maclean’s Magazine.