Tenaska Takes Next Step in Development of First Clean Coal Plant; Choosing Illinois Office of Global Firm to Oversee Engineering Work



CHICAGO – February 19, 2009 – Just days after an appropriations bill needed to implement the Illinois Clean Coal Portfolio Standard was signed, Tenaska, managing partner of the Taylorville Energy Center (TEC) project, hired the Westchester, Illinois office of WorleyParsons to oversee the Front End Engineering and Design (FEED) and facility cost report.

The FEED and facility cost report must be submitted to the Illinois Commerce Commission and Illinois General Assembly before the project can be built, according to Tenaska, TEC managing partner. The facility cost report is intended to protect consumers by ensuring the rate impact from construction of the plant is limited to the benchmark contained in the Clean Coal Portfolio Standard law.

Under the terms of the approximately $1.5 million contract, WorleyParsons will serve as the ‘owner’s engineer’, coordinating preliminary project engineering and preparing reports over the approximately 12 month FEED process. The Illinois Department of Commerce and Economic Opportunity will provide funding for a portion of this contract and other expenses for the facility cost report.

TEC will become one of the nation’s first commercial-scale, coal gasification with carbon capture plants. Its technology converts coal into substitute natural gas which can be used for electricity generation or fed into the interstate natural gas pipeline. By capturing and storing more than 50 percent of the carbon dioxide, TEC will have an emissions profile comparable to natural gas. 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.

With an estimated total cost of $3.5 billion, TEC will create 1,500 construction jobs and hundreds of permanent mining and operations jobs.

“Illinois is starting to benefit from clean coal and its rich potential for green collar jobs,” said Bart Ford, Tenaska vice president. “WorleyParsons is not only a company with a strong local presence in Illinois, but it is one of the most experienced companies for this job. We look forward to working together with them on bringing this project to fruition.”

“WorleyParsons is honored to be selected as Tenaska’s Owner’s Engineer for the Taylorville Energy Center. It is an important assignment on a groundbreaking project that will use proven technology to produce clean energy from Illinois’ most plentiful energy resource, coal. We look forward to a long and successful business relationship,” said WorleyParsons’ Scott Johnson, Vice President of Business Development.

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.

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 $3 billion in assets, including ten power plants (with approximately 6,000 MW of capacity), gas storage facilities, and transmission infrastructure construction and maintenance operations.

Tenaska is well underway in its development of two environmentally responsible, coal-fueled power plants. Taylorville Energy Center in Taylorville, Ill., will incorporate coal gasification, combined-cycle and CO2 capture and sequestration technology, making it one of the first clean-coal, commercially-sized plants in the world. Trailblazer Energy Center in Nolan County, Texas, would be the first conventional coal-fueled power plant in the nation to capture on a commercial scale up to 90 percent of the CO2 that would otherwise enter the atmosphere. 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 Worley Parsons

WorleyParsons is a leading provider of professional services to the energy, resource, and complex process industries. The company’s services cover the full asset spectrum both in size and lifecycle from the creation of new assets to services that sustain and enhance the value of operating assets. WorleyParsons’ global strategy, supported by 32,300 personnel in 118 offices across 34 countries, is one of developing fully functional operations at a local level wherever our customers need us. It provides our company with insight into their requirements and the local knowledge to deliver tailored, high-quality solutions. Major hub operations in the Americas, Asia, Europe, and Australia are used for added technical expertise and for larger project delivery capability.www.worleyparsons.com


Contact: 

Dave Lundy:
(312) 629-5245
dlundy@aileroninc.com

Jana Martin, Tenaska
(402) 691-9595
jmartin@tenaska.com