Siemens Energy to Supply Advanced Coal Gasification Technology to Taylorville Energy Center



ORLANDO, Florida – November 9, 2009 – Siemens Energy, Inc. has been chosen to provide the coal gasification technology for the Taylorville Energy Center (TEC), the 730-megawatt (gross) advanced clean coal generating plant being developed near Taylorville, Ill., the company announced today.

The Taylorville Energy Center (TEC) will be one of the nation’s first commercial-scale, coal gasification plants with carbon capture and storage (CCS) capability.

Tenaska, managing partner for the $3.5 billion project, has signed equipment contracts and licensing agreements with Siemens for four gasifiers that will convert Illinois coal into substitute natural gas. The gas will be used for electricity generation or fed into the interstate natural gas pipeline system.

TEC’s integrated gasification combined-cycle (IGCC) technology also will capture and provide storage for at least 50 percent of the carbon dioxide (CO2) that would otherwise enter the atmosphere.

“Siemens is pleased to have been chosen to support Tenaska’s goal of employing Illinois coal to provide reliable electricity in an environmentally clean manner,” said Michael Suess, CEO of the Fossil Power Generation Division of Siemens Energy.

“By capturing and storing at least 50 percent of the CO2 it produces, TEC will have emissions comparable to a natural gas-fueled plant. Achieving such a dramatic reduction in emissions by a coal-fed plant is a vital step in the global effort to combat climate change,” he said. “Siemens is glad to be a major contributor to this important breakthrough.”

“The United States will need a diverse mix of environmentally compatible sources of power to meet future needs for a clean, sustainable energy supply,” stated Randy Zwirn, president and CEO of Siemens Energy, Inc. “This unique project with Tenaska is evidence of the significant contribution IGCC can make in meeting our nation’s ever increasing energy requirements.”

“The Siemens SFG-500 gasifier is among the world’s most flexible and efficient technologies for converting coal to syngas,” said Mike Lebens, president and CEO of Tenaska’s Engineering & Operations Group. “We have very high confidence that Siemens gasification is the best technology for our project and are pleased that they are joining the TEC team.”

TEC is in advanced development, with the front end engineering and design (FEED) work required by the Illinois Clean Coal Portfolio Standard law under way. The FEED is expected to include more than 100,000 work hours by the time its facility cost report is presented to the Illinois Commerce Commission in early 2010. TEC is projected to be completed and in operation in 2014.

The U.S. Department of Energy (DOE) has supported the TEC by choosing Tenaska to proceed into the term sheet negotiation phase under the DOE Loan Guarantee Program. Upon completion of due diligence and negotiation of the termsheet and guarantee documentation, the Taylorville project expects to receive a federal government guarantee of its debt of up to $2.579 billion, depending on the final project costs and capital structure, which will greatly reduce financing costs.

In 2008, Tenaska was listed in benchmarking studies by the Natural Resources Defense Council as having the best fleet-wide record in the United States for controlling emissions of CO2 and as one of the top performing companies for controlling emissions of nitrogen oxides and sulfur dioxide.

The Siemens Energy Sector is the world’s leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2008 (ended September 30), the Energy Sector had revenues of approximately EUR22.6 billion and received new orders totaling approximately EUR33.4 billion and posted a profit of EUR1.4 billion. On September 30, 2008, the Energy Sector had a work force of approximately 83,500. Further information is available at: www.siemens.com/energy.

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 standalone private equity investments, with more than $4 billion in assets, including nine power plants (with approximately 5,400 MW of capacity), natural gas assets, and transmission infrastructure construction and maintenance operations.

Tenaska is applying proven pre and post combustion technologies on a commercial scale in its two environmentally friendly clean coal projects.  Taylorville Energy Center in Taylorville, Ill., incorporating coal gasification, combined-cycle and CO2 capture and sequestration technology, will be among the first of its kind in the nation.  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 after combustion.  This plant’s success would demonstrate how existing plants in the U.S. and China could be retrofitted immediately and cost-effectively with this carbon-reducing technology.  In 2008, Tenaska was listed in benchmarking studies by the Natural Resources Defense Council as having the best fleet-wide record in the United States for controlling emissions of CO2 and one of the top performing companies for controlling emissions of nitrogen oxides and sulfur dioxide. For more information about Tenaska, visit www.tenaska.com.

About Christian County Generation, LLC
Christian County Generation, L.L.C, a joint venture of Omaha-based independent power developer Tenaska and Louisville, Ky.-based MDL Holding Co., LLC. is developing the Taylorville Energy Center (TEC). TEC will be the first power plant in the state to incorporate coal gasification, combined-cycle and CO2 capture and storage technology, making it among the most environmentally-responsible, commercially-sized coal plants in the world. For more information about the Taylorville Energy Center, visit www.cleancoalillinois.com
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Media Contacts:

Monika Wood, Siemens Energy, Inc. (407) 736-4197, monika.wood@siemens.com
Jana Martin, Tenaska (402) 691-9595, jmartin@tenaska.com