ENERGY AND ENVIRONMENT IN BELGIUM

At present, our activities are focused mainly on project development in the fields of energy, environment and activities auxiliary to steel production.

Energy
At present, the Company is focusing on power generation, either from traditional or renewable sources, and developing possible synergies between this new activity and the environmental-based ones.

A project in which these synergies were clearly demonstrated is the new CCGT technology power plant to be built in joint venture with Italian Enel through the project company named Marcinelle Energie. The selected site, situated in Charleroi, was found to have a history of pollution, requiring in-depth soil remediation. This activity was conducted and completed during the year 2009 by Duferco Diversification, thus facilitating the construction phase of the power plant to begin on schedule. Once implemented, (the commissioning date is scheduled for early 2011), this 420 MW power plant will produce approximately 3 TWh of electricity every year.

Duferco Diversification intends to develop another major power generation project in the municipality of Farciennes (10 km East of Charleroi), where the Company already has an option for a plot of land. During 2009, Duferco established a constructive relationship with local authorities and, at present, an evaluation of the possible technical solutions is being carried out. A proposal for the installation of an approximately 900 MW power plant is expected to be introduced by the Company during 2010.

A power generation investment in La Louviere is also being considered. In late 2009, a study aiming to analyse the implantation of a waste-to-energy plant was finalised. This study will encourage the shareholders to make an investment decision during the next year.

Duferco Diversification has also made important efforts to develop projects concerning the use of renewable energy sources to generate electricity.

Currently the main project being developed by the Company is a photovoltaic power plant. Situated in the municipality of Tubize, it consists of two units, each with a capacity of 250 kW, which will supply green energy to the surrounding industries and residential areas.

Duferco Diversification is a subsidiary of the Duferco Group in charge of identifying and implementing new business opportunities in the Belgian area.