Alstom announced it will supply the boilers for two 800-megawatt units at RWE Power's existing coal-fired Westfalen power station, located in northwestern Germany, near the town of Hamm.

Under the terms of the $1 billion contract, Alstom will supply the complete boiler islands and auxiliary equipment, including erection and commissioning.

"At Hamm we are erecting one of the most advanced bituminous coal-fired twin unit plants worldwide that, compared with old units, helps save some 2.5 million tons of carbon dioxide annually while generating the same power," said Johannes Lambertz, chief executive officer of RWE Power.

The upgrade project is expected to be complete in 2011, and the new units will reportedly achieve cycle efficiencies of about 46 percent.

The new Westfalen supercritical boilers are expected to reduce all emissions, including carbon dioxide, by about one-third. Levels of nitrogen oxide and sulfur dioxide emissions are also expected to be reduced.