New Mexico Power Project Applies to Use
State of the Art Carbon Capture and Sequestration
NEW YORK, Oct 05, 2009 -- BUSINESS WIRE
Sithe Global Power LLC ("Sithe") announced today that it has applied for
a $450MM Department of Energy ("DOE") grant under the CCPI 3 program to
implement carbon capture and sequestration ("CCS") technology at its
Desert Rock Energy Project, a proposed coal-fired power plant to be
constructed on Navajo Nation territory in New Mexico.
The DOE's CCPI program was established to accelerate the adoption of CCS
technology and to utilize the manufacturing know-how gained from these
initial projects to increase the efficiency and to reduce the cost of
CCS, thereby proving the commercial viability of the technology and its
efficacy in both new and existing power generation facilities. Sithe's
affiliate, Desert Rock Energy, is the developer of the New Mexico
project.
Desert Rock was already designed as an ultra super-critical facility,
incorporating the most efficient proven environmental technology for the
removal of pollutants, such as reducing sulfur dioxide ("SO2") by 98%,
nitrous oxide ("NOx") by 95% and mercury by over 90%. The EPA also
acknowledged that the Desert Rock facility would have been "one of the
cleanest pulverized coal-burning power plants in the country." However,
Sithe has now chosen to further reduce the pollutants produced by the
facility through the incorporation of the latest CCS technology into the
project. Desert Rock is an ideal candidate for CCS technology as the
site is located in close proximity to an existing pipeline used to
transport carbon dioxide from Colorado to West Texas to increase oil
production from mature fields.
Desert Rock with CCS technology installed will meet the stated strategic
goals of the Obama Administration for reducing carbon dioxide emissions,
while supporting continued economic development, creating "green" jobs
and providing consumers with affordable power.
President Shirley of the Navajo Nation states, "The completion of Desert
Rock remains critical to the economic development of the Navajo Nation.
It now serves as a milestone project for the power industry, while
showing the strong commitment of the Navajo Nation to preserve our
environment." Power generated from Desert Rock will now meet the
requirements to qualify for renewable energy credits, and may be sold
into all Western power markets, thereby mitigating the risk of future
power shortages.
Bruce Wrobel, Sithe's CEO, said "Sithe's management and our majority
shareholder, Blackstone, pursue each of its power development projects
in an environmentally responsible manner. We take into account the needs
of the local community as well as the applicable environmental
regulations with an eye toward developing facilities that address those
needs and provide power safely and efficiently, while earning an
economic return for our investors. With the continued support of the
local community and the DOE, Sithe believes that, upon its completion,
Desert Rock will be one of the first commercial scale examples of
clean-coal technology in America and will provide a benchmark for future
development projects."
Dr. Jim Henderson, San Juan County New Mexico's Commissioner for
District 4, said, "I applaud Sithe's efforts to incorporate the latest
in clean coal CCS technology into the Desert Rock project and urge the
DOE to give the project its close consideration."
About Sithe Global
Sithe Global is a privately held international independent power
development company which focuses on certain target markets in North
America, Europe, Mexico, Africa and the Middle East. Sithe Global is led
by a seasoned management and technical team with extensive independent
power project development experience, and a proven record of identifying
project development and acquisition opportunities which create
substantial value for its investors. The Sithe Global management team
has successfully developed over 50 power plant projects in nine
countries with a capital investment in excess of $5 billion. Further
information is available at www.sitheglobal.com.
About Blackstone
Blackstone is one of the world's leading investment and advisory firms.
We seek to create positive economic impact and long-term value for our
investors, the companies we invest in, the companies we advise and the
broader global economy. We do this through the commitment of our
extraordinary people and flexible capital. Our alternative asset
management businesses include the management of corporate private equity
funds, real estate funds, funds of hedge funds, credit-oriented funds,
collateralized loan obligation vehicles (CLOs) and closed-end mutual
funds. The Blackstone Group also provides various financial advisory
services, including mergers and acquisitions advisory, restructuring and
reorganization advisory and fund placement services. Further information
is available at www.blackstone.com.
SOURCE: Sithe Global Power LLC
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