Press Release
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Tenaska to Use Water-Conserving Technology
at Trailblazer Energy Center

Carbon Capturing Plant Adds Dry Cooling to Environmental Features

SWEETWATER, Texas (April 6, 2010) – The Tenaska Trailblazer Energy Center, the advanced technology electric generating plant with carbon capture and storage now under development near here, will use “dry cooling” equipment to conserve water, Tenaska announced today.

Dry cooling equipment uses air to cool water and steam rather than evaporating water. Because there is no evaporation, the consumption of water is reduced by more than 90 percent when compared to traditional “wet cooling” methods predominantly used by power plants today. Instead of consuming an estimated 10 million gallons of water per day, Trailblazer is expected to use an average of 1 million gallons per day, and no more than 2 million gallons a day even during periods of great demand for electricity, such as extremely hot or cold days.

In dry cooling, also known as air cooling, fans draw cool air across heat exchangers to cool low pressure steam. Although more expensive to build, such a design substantially reduces loss of water due to evaporation.

The Trailblazer Energy Center will be the first coal-fueled power plant in Texas to use the dry cooling method on a large scale.

“After extensive review of the potential water sources in the region, we decided to use the most water-efficient cooling method,” said Tenaska Business Development Manager Helen Manroe. "We are moving forward with design and engineering work based on dry cooling."

“Tenaska understands how valuable water is in West Texas, which is why we are proposing to buy treated municipal wastewater for use at Trailblazer,” Manroe said. “Municipal wastewater serves the company’s long-term needs and maintains the area’s quality of life and capacity to grow.”

Since Trailblazer was announced in 2008, Tenaska operated under the assumption that dry cooling might be incorporated. The company has focused on securing enough treated wastewater from area municipal sewer treatment plants to support operations at Trailblazer with a dry cooling design. The city of Abilene is considering Tenaska’s request to purchase the up to 2,000 acre feet per year of treated sewer water required to dry cool the plant.

Tenaska has a history of efficient water use, Manroe said, noting that one of its power plants was designed and operated using reclaimed water. In fact, she said, Tenaska developed a power generation project in Texas that included one of the largest water reuse projects of its time.

“Trailblazer is leading the way toward more environmentally responsible electric power generation with water-conserving dry cooling technology, state-of-the-art environmental controls and carbon capture,” Manroe said. “We are committed to bringing today’s most highly advanced technologies to West Texas. Trailblazer’s contribution to the region’s growing reputation for clean energy production will do much to enhance the area’s economy.”

“As one who has been deeply involved in water policy issues for many years, I am aware of the requirement to balance water conservation with our equal need for energy to support economic growth,” said Sen. Robert Duncan, R-Lubbock, whose district includes the proposed site of the Trailblazer Energy Center. “Tenaska is to be commended for recognizing the importance we place on preserving our water resources and, accordingly, seeking the latest technologies designed to minimize water use at its Trailblazer plant.”

“Tenaska’s decision to design the plant to use as little water as possible is good for West Texas,” said Rep. Susan King, R-Abilene. “We realize that dry cooling poses an additional expense, and believe it speaks to Tenaska’s efforts to listen to the public concerns. The decision shows their willingness to go that extra mile to help preserve our area’s water resources.”

The Trailblazer Energy Center will be among the first new conventional coal-fueled power plants to capture on a commercial scale 85 to 90 percent of the carbon dioxide (CO2) that would otherwise be emitted and will provide for its geologic storage. The CO2 will be shipped via pipeline to Permian Basin oil fields for use in enhanced oil recovery, boosting oil production by an estimated 10 million barrels per year.

A study by Texas-based economic analyst TXP, Inc., indicates the Trailblazer Energy Center will create 1,500 new jobs at peak construction and more than 100 well-paying jobs during operation. In addition, the Nolan County area will gain approximately $742 million in increased local spending during construction and $300 million annually each subsequent year of operation. A second independent study, conducted by J&A Consulting Group, LLC, of Abilene, determined that Abilene would see an increase of between $146 million and $175 million in economic activity during the five-year construction period and an additional $1 million to $3 million annually during the 50-year life of the project. The study conservatively assumes that a maximum of 33 percent of the project’s construction and long-term employees would come from Abilene, although the actual percentage could be higher.

Construction of Trailblazer is expected to begin late next year, pending the receipt of necessary permits and the evaluation of any federal action promoting projects that capture and store CO2.

 

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, 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. Tenaska Capital Management, an affiliate, is the manager of private equity funds with approximately $5 billion in assets, including nine power plants (with approximately 5,400 MW of capacity), natural gas assets, and transmission infrastructure construction and maintenance operations. In 2008, Tenaska was listed in benchmarking studies by the Natural Resources Defense Council as having the best record in the United States for controlling fleet-wide average emissions of carbon dioxide and as one of the top performing companies for controlling emissions of nitrogen oxides and sulfur dioxide. For more information about Tenaska, visit www.tenaska.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.

CONTACTS

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


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