AUSTIN, Texas – Prospects for the Tenaska Trailblazer Energy Center near Sweetwater have improved with the Texas Legislature’s passage of groundbreaking clean energy legislation that will help the plant development move forward and help bring jobs and economic activity to Nolan County and the region.

Legislation passed during the 81st session that ended June 1 will help put into place state and local incentives that, together, provide the framework for attracting to Texas investment in large capital-intensive projects, such as Tenaska’s Trailblazer project.

Included are measures that will help support development, construction and long-term operation of Trailblazer.

“Far-reaching legislation passed in this session will place Texas at the forefront of clean energy development and help improve prospects for Trailblazer’s construction,” said Helen Manroe, Tenaska Business Development manager.

As a plant that will capture and provide for the storage for 85 to 90 percent of its carbon dioxide (CO₂) that would otherwise be emitted into the air, Trailblazer is eligible for a state grant approved by the Legislature to help fund front-end engineering and design studies and related costs, she said.

New legislation also establishes a framework for regulation of CO₂ sequestration and storage between the Railroad Commission and the Texas Commission on Environmental Quality.
The CO₂ captured by Trailblazer would be shipped via pipeline to the Permian Basin oil fields for use in extracting additional oil from wells nearing depletion, a well-established technology in Texas oil fields for more than 30 years.

The Legislature also approved a bill that will provide tax incentives for each of up to three carbon-fueled power generating projects that capture and sequester at least 70 percent of their CO₂ emissions. Recipients of the tax credits must be able to supply CO₂ for enhanced oil recovery, as Trailblazer would.

The CO₂ Trailblazer would provide to the Permian Basin oil fields would increase annual production by more than 10 million barrels, enhancing the West Texas economy and helping reduce dependence on foreign oil.

The bill also requires eligible projects to meet stringent air emission standards for nitrogen oxides, sulfur dioxide, particulate matter and mercury, all of which Trailblazer, with its highly advanced emissions controls, would meet. These standards set the environmental
standards bar higher for incentives than any other state or national incentive program.

Trailblazer would be possibly the first conventional coal-fueled power plants in the world to capture 85 to 90 percent the CO₂ that would otherwise be emitted into the air and provide for its geologic storage. The plant also would be a source of essential and cost-effective baseload electricity generating capacity, providing round-the-clock electricity to 600,000 Texas homes.

“Texas lawmakers this session built on progressive clean energy legislation passed in 2007 to develop the most comprehensive incentive package for clean coal projects in the nation,” said David Fiorelli, Tenaska’s president and CEO, Business Development.    

“Tenaska applauds the Texas Legislature on creating mechanisms and incentives that supports pioneering companies such as ours,” said Fiorelli. “Today, Texas stands out among the states for its progressive and far-sighted approach to encouraging development of needed and environmentally responsible power generation. Its leadership is one reason Tenaska can consider bringing such a large capital project to West Texas.”

According to a study by TXP, Inc. (TXP), an Austin economic analysis and public policy consulting firm, the project would provide: 1,500 jobs in West Texas at the peak of construction and more than 100 for plant operations; more than $742 million in local economic activity during construction and more than $300 million annually over the 50-year life of the project; and a 50 percent increase in taxable property in Nolan County.

Trailblazer will generate 600 megawatts (net) of electricity by using the best available supercritical, pulverized coal technology. Tenaska will weigh the state support, along with other financial factors, to determine whether construction of the project can proceed in 2010.

About Tenaska

Tenaska is one of the largest privately-owned energy companies. Forbes and Fortune magazines rank Tenaska 24th and 25th, respectively, among the largest privately-held U.S. companies. Headquartered in Omaha, Nebraska, it 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, natural gas exploration, production and transportation systems, and electric transmission development. 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. In 2008, Tenaska was listed in benchmarking studies by the Natural Resources Defense Council as having the best records in the United States for lowest fleet-wide average emissions of carbon dioxide, nitrogen oxides and sulfur dioxide. For more information about Tenaska and the Trailblazer Energy Center, visit www.tenaska.com or www.tenaskatrailblazer.com.


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More information about the Tenaska Trailblazer Energy Center and illustrations for press use may be obtained at www.tenaskatrailblazer.com

Holley Hatt
Tenaska, Inc.
Office: (402) 691-9710
Mobile: (402) 709-8293
hhatt@tenaska.com

Jana M. Martin
Tenaska, Inc.
Office: (402) 691-9595
Mobile: (402) 203-0748
jmartin@tenaska.com