CHICAGO – March 26, 2009 – Tenaska has retained the construction firm Kiewit Energy Co. and the engineering firm Burns & McDonnell to conduct the Front End Engineering and Design (FEED) study and facility cost report for the Taylorville Energy Center (TEC).
Tenaska, the project’s managing partner, expects to issue additional contracts for technology licenses and process design work required for the FEED study within the next 60 days.
Under the Illinois Clean Coal Portfolio Standards Act (ICCPSA), the FEED study and facility cost report will be submitted to the Illinois Commerce Commission and Illinois General Assembly. The facility cost report will protect consumers by ensuring the rate impact from construction of the plant is limited. The total capital cost is currently estimated at $3.5 billion. Tenaska hopes to commence construction in 2010 after the General Assembly approves the report.
Under ICCPSA, the Illinois Department of Commerce and Economic Opportunity is providing a portion of the funding for the report’s engineering and design work. International engineering firm WorleyParsons’ Westchester, Illinois office is ‘owner’s engineer’ for the project.
TEC will be one of the nation’s first commercial-scale, coal gasification with carbon capture plants. Its technology will convert coal into substitute natural gas which can be used for electricity generation or fed into the interstate natural gas pipeline system. By capturing and storing more than 50 percent of the carbon dioxide (CO2), TEC will have an emissions profile comparable to a natural gas plant. Achieving such a dramatic reduction in greenhouse gases by a coal-fueled plant is a vital step in the global effort to combat climate change.
TEC will create 1,500 construction jobs and hundreds of permanent mining and plant operations jobs. Tenaska estimates that the net effect of operating the plant will reduce CO2 emissions by at least one million tons per year, as higher emitting power facilities are displaced by the cleaner, more efficient, TEC.
“We are very pleased to be working for Tenaska on this clean coal power plant,” said Dan Lumma, vice president of Kiewit Energy. “It is an exciting project that will move the U.S. forward in terms of clean, home-grown energy and also brings good jobs to the State of Illinois”.
TEC is being developed by Christian County Generation, LLC, a joint venture of Omaha-based independent power developer Tenaska and Louisville, Ky.-based MDL Holding Co., LLC.
“The economic benefits of this project are already happening in Illinois, as green collar jobs are created and contracts signed for the development of clean coal,” said Bart Ford, Tenaska vice president. “Kiewit and Burns & McDonnell are among the most experienced and respected engineering and construction firms in the energy sector. Both have strong credentials in Illinois. With their expertise, we will move this project forward capably and expeditiously.”
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 $3 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, nitrogen oxides and sulfur dioxide. For more information about Tenaska, visit www.tenaska.com.
About Christian County Generation, LLC
Christian County Generation, LLC, 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 is the first clean coal power plant proposed for the state. It will incorporate coal gasification, combined-cycle and CO2 capture and sequestration technology, making it among the most environmentally-responsible, commercially-sized coal plants in the world.
The Hybrid Integrated Gasification Combined-Cycle (IGCC) process for the Taylorville Energy Center is available for viewing and downloading atwww.cleancoalillinois.com, along with details on the project, the technology and the law. Permission to reproduce the illustration in news materials has been granted by Tenaska.