Written by Ben Barkley, The Sweetwater Reporter

February 19, 2007 (Sweetwater, Texas) — Tenaska, Inc. is developing a site near Sweetwater upon which to construct a technologically advanced coal-fueled electric generating station able to capture up to 90 percent of the carbon dioxide 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, headquartered in Arlington.

The proposed construction site is a 1,919-acre tract east of Sweetwater and north of Interstate 20 in Nolan County.

The question is why Sweetwater for this new trailblazing technology.

“We like Texas as a state,” said Bill Braudt, Tenaska’s general manager of business development. “The site is just perfect.”

The 1,900 acres is more than enough for the company and like many Texans, Tenaska officials and employees are “green people.”

“This is a wonderful site,” he added.

The project will provide a significant boost to the local economy. Tenaska will invest more than $2 billion in construction. The total cost of the project is more than $3 billion. It will provide up to 2,000 jobs at peak construction and more than 100 permanent jobs during operation.

The final decision to proceed with the project will be made in 2009 based on a number of factors, including local, state and federal incentives; final project cost estimates, and projected market prices for electricity and carbon dioxide. Current estimates of these factors make the project appear to be economically feasible.

“It is exciting to see this innovation coming to West Texas,” said Texas State Sen. Robert Duncan. “Tenaska’s approach to energy generation through the capture of 90 percent 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.”

Speaking to a group of Sweetwater business leaders today, Braudt 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.”

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.

“This power plant would be an enormous benefit to Sweetwater, Nolan County and West Texas,” said Texas Rep. Susan King. “Along with jobs and increased energy production, we would have a facility that is on the cutting edge of environmentally conscious technology. This type of project demonstrates the spirit and willingness of the Big Country to take the lead in working toward a brighter future. We look forward to working with Tenaska on this project.”

Helen Manroe, Tenaska manager of business development, meeting with Nolan County leaders, pointed out that the Tenaska Trailblazer Energy Center’s captured carbon dioxide “will make a major contribution to the Sweetwater and West Texas economies.

“The carbon dioxide produced and captured by this project will enable Texas to in-crease oil production and thus reduce the nation’s dependence on foreign oil,” she added.

In fact, Tenaska’s proposed facility will be the first of its kind and has many people looking forward to the future.

“This is going to surprise people,” said Dr. Greg Kinkel, Tenaska’s vice president for environmental affairs. “Tenaska has a good record when it comes to environmental issues.”

Braudt said some people will oppose the plant, but with all of the information it has, the facility will be environmentally friendly.

“Tenaska is encouraged by the positive response it has received from the Sweetwater and Nolan County leadership,” Manroe said.

“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 conventional coal-fueled power plant, other than small research projects, to capture and provide for storage carbon dioxide, considered by many to be 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 carbon dioxide would be captured and transported via pipeline to oil fields in the Permian Basin where it will be used in enhanced oil recovery and storied in the Basin’s geologic formation. Carbon dioxide has been used to increase oil production in West Texas for more than 30 years. The volume of carbon dioxide 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 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, Neb., that develops, constructs, owns and operates generating plants. The company has developed four generating plants in Texans and continues to own and operate two, Tenaska Frontier Generating Station near Shiro and Tenaska Gateway Generating State near Mt. Enterprise. A third plant, the Tenaska Kiamichi Generating Station near Kiowa, Okla., 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.



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More information about the Tenaska Trailblazer Energy Center go to www.tenaskatrailblazer.com.