Tenaska Chooses Fluor Carbon Capture Technology

Trailblazer Energy Center Will Use Econamine FG Plus at Pioneering Plant

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Jul 26, 2010, 07:00 ET

SWEETWATER, Texas, July 26 /PRNewswire/ -- Tenaska has chosen Fluor Corporation's Econamine FG Plus(SM) carbon capture technology for use in its proposed Tenaska Trailblazer Energy Center, being developed near Sweetwater.

Trailblazer will be a pioneering 600-megawatt (net) electricity generating plant fueled by pulverized coal and is expected to be among the first full-scale commercial power plants in the nation, and the first in Texas, to capture 85 to 90 percent of the carbon dioxide (CO2) byproduct, sending it via pipeline to the Permian Basin to be used in enhanced oil recovery.

Based on the projected rate of capture, the plant will emit significantly less CO2 than an equivalent capacity natural gas-fueled plant.

Econamine FG Plus(SM) is a Fluor (NYSE: FLR) proprietary, amine-based technology for large-scale, post-combustion CO2 capture. The technology is one of the first and among the most widely applied commercial solutions proven in operating environments to remove CO2 from high-oxygen content flue gases.

"Fluor's Econamine FG Plus(SM) technology has been licensed at commercial scale in 26 industrial plants worldwide, including three in the United States," said Michael Lebens, president of Tenaska's Engineering & Operations Group. "The combination of Fluor's expertise with the technology and its 20 years of experience in practical applications makes it the best choice for use at Trailblazer."

Tenaska's initial design and engineering work for Trailblazer also is being performed by Fluor, the project's engineering, procurement and construction contractor. Fluor, based in Irving, Texas, designs, builds and maintains many of the world's most challenging and complex projects.

Dave Dunning, president of Fluor's Power Group, said the company is pleased that its technology has been chosen for the Trailblazer project. "Trailblazer represents an innovative environmental breakthrough in clean energy production that will have positive implications worldwide," he said. "Fluor is eager to move forward and begin building this important new energy source for Tenaska and Texas."

Trailblazer will generate more than $740 million in Nolan County economic impact during construction and during operation will provide more than 100 direct well-paying permanent jobs, plus an estimated 70 secondary jobs from increased local spending. In addition, the captured CO2 used in enhanced oil recovery will add more than 10 million barrels of oil production annually to the West Texas economy.

Arch Coal, Inc. has a 35 percent equity interest in the project and will supply the coal from the Powder River Basin in Wyoming.

Tenaska recently completed an administrative hearing on its application for a Texas Commission on Environmental Quality (TCEQ) air quality permit, and expects to have a final permit by the end of this year.

About Tenaska

Tenaska has developed approximately 9,000 megawatts (MW) of electric generating capacity across the United States. Tenaska's affiliates operate and manage eight power plants in six states totaling more than 6,700 MW of generating capacity owned in partnership with other companies. Tenaska Capital Management, an affiliate, provides management services for stand-alone private equity funds, with nearly $5 billion in assets, including nine power plants (with approximately 5,400 MW of capacity) and multiple natural gas midstream assets, including gas storage, gathering and processing facilities.

Tenaska is applying proven pre- and post-combustion technologies on a commercial scale in its two environmentally friendly clean coal projects. In addition to the Taylorville Energy Center in Taylorville, Ill., Trailblazer Energy Center in Nolan County, Texas, is expected to be the first commercial scale, conventional coal-fueled power plant in the world to capture a significant portion of its CO2. This plant's success would demonstrate how existing plants in the U.S. and China could be retrofitted cost-effectively with this carbon-reducing technology. Tenaska was recently listed in benchmarking studies by the Natural Resources Defense Council as having among the very best fleet-wide records in the United States for controlling emissions. For more information about Tenaska, visit www.tenaska.com

About Fluor Corporation

Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the world's most challenging and complex projects. Through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in the fields of engineering, procurement, construction, commissioning, operations, and maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 150 company and had revenues of $22 billion in 2009. For more information, visit www.fluor.com.

SOURCE Tenaska