Located in the high-tech corridor near Harvard University and the Massachusetts Institute of Technology (MIT), the network supplies process steam to global leaders in biotechnology and pharmaceuticals. Dalkia is forecasting revenue of at least $9 million in its first full year of operation in this high potential region.
At present, the network is supported by heavy fuel oil-fired boilers. To ensure the long-term future of "firm" steam for the network's customers, by summer 2006 Dalkia will complete the installation of a new gas-fired steam heating plant with a rated capacity of 110 tons per hour. The new facility will supply 150,000 tons of steam a year to its industrial customers and property owners in the Cambridge region.
The ability to eliminate the use of heavy fuel oil in the city of Cambridge gave Dalkia's bid an environmental advantage, since Massachusetts is one of nine American states to have signed an agreement to reduce greenhouse gas emissions.
This acquisition is Dalkia's second major success in the United States this year, following the signature in March of a contract to provide comprehensive technical management services at The Galleria, Houston's biggest retail shopping centre.
"I'm proud of this agreement, which gives Dalkia a long-term presence in the United States, alongside Veolia Water, Onyx and Connex, and strengthens Veolia Environnement's operations in Massachusetts," said Olivier Barbaroux, Chairman and Chief Executive Officer of Dalkia.
Since 2003, Connex has been operating Boston's suburban train network, one of the biggest in the country.
A subsidiary of Veolia Environnement and Electricité de France (EDF), Dalkia is the leading European provider of energy services to local authorities and businesses. Since its creation, it has focused on energy and environmental optimization. It meets customer expectations by delivering customized, end-to-end solutions to ensure comfortable living and efficient energy supply, including management of heating systems and energy and industrial fluid production facilities, energy plant engineering and maintenance services, technical services for commercial and industrial building operation, and global building management services. With more than 43,300 employees in 38 countries, Dalkia reported 2004 revenue of €5.7 billion.
Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This press release contains'forward-looking statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement.
Dalkia - Pascale Barillot: +33 1 71 75 11 40
Dalkia - Peggy Dufour: +33 1 71 00 72 77
Image sept - Delphine Guerlain: +33 1 53 70 74 48