SWEETWATER, Texas –Moving forward in the advanced development phase of the Tenaska Trailblazer Energy Center, Tenaska has selected Fluor Corporation (NYSE: FLR) to be the engineering, procurement and construction (EPC) contractor for the project. Tenaska has signed a memorandum of understanding with Fluor that will be the basis of a joint Tenaska-Fluor preliminary engineering phase of work.

Trailblazer would be a next-generation, advanced-technology power plant that, even during its construction, would provide jobs and strong economic development opportunities for this region of Texas.

“Fluor is one of a select group of engineering and construction companies capable of designing, engineering and constructing a plant the scale of the proposed Trailblazer plant,” said Tenaska Business Development Manager Helen Manroe.

“Fluor is known and respected for its expertise and experience in building power plants across the globe and has experience both in coal-fueled facilities and in advanced carbon capture technology,” she said.

Trailblazer is expected to be the first conventional commercial coal-fueled power plant in the United States, and possibly worldwide, to produce electricity while designed to capture 85 to 90 percent of the carbon dioxide (CO₂) emissions and providing for its use in enhanced oil recovery (EOR) and geologic storage. The plant’s advanced air quality control system will also minimize release of other emissions. Trailblazer is being designed to generate approximately 600 megawatts (MW) of electricity, enough to supply power to approximately 600,000 Texas homes.

The CO₂ captured by Trailblazer’s groundbreaking technology will be delivered via pipeline to the Permian Basin, where it will be used to increase annual oil production by an estimated 10 million barrels, enhancing the West Texas economy and helping reduce dependence on foreign oil. CO₂ has been used for enhanced oil recovery in Texas for more than 30 years to improve production and increase economic value.

“The selection of Fluor represents another milestone in Trailblazer’s path toward becoming a revolutionary and state-of-the-art generator of needed electric energy in Texas,” said Manroe.

The engineering phase, to last approximately 12 months, will produce the preliminary design and the cost to build the plant. It will be a factor in Tenaska’s final decision on whether to proceed with construction of Trailblazer. If Tenaska decides to proceed, Manroe said, the company intends to sign a contract with Fluor for engineering, procurement and construction services for the facility, including implementing design requirements, engineering, equipment procurement, construction and start-up of the plant.

Fluor would locate offices and move personnel to Sweetwater once the decision to proceed has been made and the contract for construction is signed, said James Mackey, vice president of Fluor’s Power Group.

Manroe added, “We are pleased to have been able to select a Texas-based EPC contractor for the Trailblazer project. Tenaska and its contractors have a history of making concerted efforts to hire qualified personnel locally when possible to increase the project’s benefits to the local area. Persons interested in future employment, subcontracting and service and material supply opportunities can find a Fluor contact person listed on Trailblazer’s web site: www.tenaskatrailblazer.com.

The Texas Legislature, in the session just concluded, also helped advance the prospects for Trailblazer development by passing progressive incentives and a regulatory framework to attract capital-intensive clean energy projects to Texas, including a grant to help fund front end engineering and design (FEED) studies for carbon-capturing energy facilities.

Fluor Corporation is a century-old FORTUNE 150 company headquartered in Irving, Texas, which performs engineering, procurement, construction, maintenance and project management services to private sector and government clients in diverse industries in more than 25 countries. Fluor's experience covers all aspects of pulverized coal including advanced supercritical facilities like Trailblazer.

Construction of Trailblazer, on a West Texas site east of Sweetwater, could begin as early as 2010, with operation in 2015. Construction and operation of the plant would mean a significant and decades-long economic boost to the Nolan County area. Studies indicate 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.

“We look forward to working with Tenaska on the first phase of this next-generation power plant,” said Dave Dunning, president of Fluor’s Power Group. “We believe Trailblazer will set a new standard for clean coal generation of electricity globally using advanced carbon capture technology and we are pleased to be a part of this innovation in clean energy production.”


About Fluor

Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the world's most challenging and complex projects. Through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in the fields of engineering, procurement, construction, commissioning, operations, and maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 150 company and had revenues of $22.3 billion in 2008. For more information, visit www.fluor.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