ARLINGTON, Texas, Feb 19, 2008 /PRNewswire
Tenaska, Inc. is developing a site near Sweetwater, Texas, upon which to
construct a technologically advanced coal-fueled electric generating plant
able to capture up to 90 percent of the carbon dioxide (CO2) that would
otherwise enter the atmosphere. The carbon dioxide would be sold for use in
enhancing oil production in the Permian Basin, resulting in geologic
storage.
An air permit application, the first formal step in gaining approval to
build the plant, was filed today with the Texas Commission on Environmental
Quality (TCEQ), according to David Fiorelli, president and CEO of Tenaska's
Business Development Group.
The proposed construction site is a 1,919-acre tract east of Sweetwater and
north of Interstate 20 in Nolan County. The more than $3-billion project
will provide a significant boost to the local economy, providing up to 2,000
jobs at peak construction and more than 100 permanent well paying jobs
during operation.
The final decision to proceed with the project will be made in 2009 based on
a number of factors, including the availability of local, state and federal
incentives; final project cost estimates; and projected market prices for
electricity and CO2. Current estimates of these factors make the project
appear to be economically feasible.
Speaking to a group of Sweetwater business leaders today, Bill Braudt,
Tenaska's general manager of business development, said that "the benefits
of this proposed plant are many. It will provide a source of badly needed,
environmentally sound electric generating capacity. This plant will use
abundant and relatively low-cost coal and help keep Texas electricity prices
in check."
"It is exciting to see this innovation coming to West Texas," said Texas
State Senator Robert Duncan. "Tenaska's approach to energy generation
through the capture of 90% of carbon dioxide and reduced water consumption
is unique, and we West Texans pride ourselves on seeking new ways to achieve
better results. We expect a strong partnership with Tenaska that will
revolutionize this industry."
Tenaska is working with Sweetwater area officials to determine the
feasibility of the project and to provide accurate and timely information to
Sweetwater area residents.
Helen Manroe, manager of business development for Tenaska, meeting with
Nolan County leaders, pointed out that the Tenaska Trailblazer Energy
Center's captured CO2 "will make a major contribution to the Sweetwater and
West Texas economies.
"The carbon dioxide produced and captured by this product will enable Texas
to increase oil production and thus reduce the nation's dependence on
foreign oil," she added.
"Nolan County is home to more wind turbines than any other place in the
United States," said Nolan County Judge Tim Fambrough. "The Tenaska
Trailblazer Energy Center builds on this area's reputation as a location for
progressive, environmentally responsible electric generation. We are
delighted to welcome Tenaska to our community."
If built, the plant will be the first new commercial coal-fueled power
plant, other than small research projects, to capture and provide for
storage of CO2, considered by many a greenhouse gas that contributes to
global climate change. As such, it would be a first-of-its-kind breakthrough
in environmentally responsible electricity production that has been sought
by Texas civic and business leaders, environmentalists and energy consumers.
The CO2 would be captured and transported via pipeline to oil fields in the
Permian Basin where it will be used in enhanced oil recovery and stored in
the Basin's geologic formations. CO2 has been used to increase oil
production in West Texas for more than 30 years.
The volume of CO2 expected to be sold to oil producers could be used to
recover enough oil to add more than $1 billion a year of oil production to
the Texas economy.
The approximately 600-megawatt (MW) plant would provide enough electricity
to power about 600,000 homes. Construction could begin in late 2009 and be
completed in 2014.
Tenaska is a privately held energy company, based in Omaha, Nebraska, that
develops, constructs, owns and operates numerous generating plants. The
company has developed four generating plants in Texas and continues to own
and operate two, Tenaska Frontier Generating Station near Shiro and Tenaska
Gateway Generating Station near Mt. Enterprise. A third plant, the Tenaska
Kiamichi Generating Station near Kiowa, Oklahoma, also supplies electricity
into Texas. Tenaska's power marketing company, Tenaska Power Services Co.,
is based in Arlington, along with Tenaska's Business Development Group.
About Tenaska
Tenaska is an energy company, headquartered in Omaha, Nebraska, that
develops, constructs, owns and operates non-utility generation and
cogeneration plants. The company also markets natural gas, biofuels and
electric power, and provides risk management services. Tenaska is involved
in asset acquisition, fuel supply, gas transportation systems, and electric
transmission development. Tenaska has developed approximately 9,000 MW of
electric generating capacity across the United States. Tenaska's affiliates
own, operate and manage eight power plants in six states totaling more than
6,700 MW of generating capacity. Tenaska Capital Management, an affiliate,
manages the Tenaska Power Fund, an entity that owns 12 power plants (with
approximately 6,000 MW of capacity), gas storage facilities, and
transmission infrastructure construction and maintenance operations. In
2006, Tenaska was listed in benchmarking studies by the Natural Resources
Defense Council as having the best record in the United States for
fleet-wide average emissions of nitrogen oxides and carbon monoxide. For
more information about Tenaska, visit the company's Web site at
http://www.tenaska.com .
More information about the Tenaska Trailblazer Energy Center and
illustrations for press use may be obtained at
http://www.tenaskatrailblazer.com .
SOURCE Tenaska, Inc.
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