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Department of
Energy Selects OUC, Southern Company ORLANDO - The U.S. Department of Energy announced today it has selected the Orlando Utilities Commission – along with Southern Company – to build a $557 million, advanced coal gasification facility in Central Florida as part of the department’s Clean Coal Power Initiative. The 285-megawatt plant will be built at OUC’s Stanton Energy Center near Orlando and will gasify coal using state-of-the-art emissions controls, showcasing the cleanest, most efficient coal-fired power technology in the world. The DOE will contribute $235 million and OUC and Southern Company will contribute $322 million. “For Central Florida, this is an environmental milestone,” said Tommy Boroughs, Commission president for OUC. “OUC has been an industry leader in providing reliable and affordable power, while also using state-of-the-art environmental power production technologies. We are proud to continue our efforts in partnership with the Department of Energy and Southern Company in the Clean Coal Power Initiative.” The expected date for commercial operation is early 2010 and groundbreaking sometime in 2007. OUC and Southern Company will co-own the project. “This project is a prime example of our Administration’s desire to develop cutting-edge technologies to help meet our nation’s future energy needs,” said Department of Energy Secretary Spencer Abraham. “Advancing the technology for clean coal will go a long way toward giving us control of our energy future, and it will be an important part of safeguarding the environment for future generations. “Clean energy technologies like those pioneered here mean jobs for this region, including high-tech, highly skilled jobs. Estimates suggest this project will account for more than 1,800 jobs which will help continue the expansion of Orlando’s economy.” With a longstanding commitment to the environment – and a history of operating power plants that are among the cleanest in the nation – OUC has invested more than $200 million in state-of-the-art environmental protection equipment to safeguard the air, water and quality of life in Central Florida. The new coal gasification project will turn coal into gas for generating electricity while significantly reducing emissions of sulfur dioxide, nitrogen oxides and mercury. In addition, the technology produces 20-25 percent less carbon dioxide, on average, than coal-based generation in place today. "This clean coal project is good for Florida's environment and quality of life, it is a strong boost to our economy as a direct source of job creation, as well as increased power to fuel future Florida businesses, and it improves the security of our energy supplies," Florida Governor Jeb Bush said. "Clean, advanced energy technologies are the future of energy in this state and this country." The project was one of two selected to demonstrate advanced power generation systems using Integrated Gasification Combined Cycle (IGCC) technology, a variation on a natural gas-fired combined cycle power plant in which a coal-derived gas (produced by the coal gasifier) replaces the natural gas. In a combined cycle plant two power generators, or cycles, are used in combination to generate electricity in a very efficient manner. The gas from the coal is first passed through a gas turbine to generate electricity; then the hot gas leaving the turbine is used to heat water to produce steam to power a steam turbine and generate electricity a second time. This approach increases the amount of electricity that can be generated from a ton of coal and does so in an environmentally sound manner. IGCC promises dramatically increased efficiency and reliability, improved environmental performance, reduced capital and operating costs, and flexibility to process both high- and low-rank coals. “We’re excited about the opportunity to work once again with the Orlando Utilities Commission,” said Paul Bowers, president, Southern Company Generation and Energy Marketing. “We already jointly own a 600-megawatt, combined cycle facility at the Stanton Energy Center with OUC and others, and this new project demonstrates a strong partnership in helping meet the growing energy needs of Florida and the nation.” With more than 4 million customers and nearly 39,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier super-regional energy company in the Southeast and a leading U.S. producer of electricity. Southern Company owns electric utilities in four states, a growing competitive generation company, an energy services business and a competitive retail natural gas business, as well as fiber optics and wireless communications. Visit the Southern Company Web site at www.southerncompany.com. Established in 1923 and owned by the citizens of Orlando, OUC—The Reliable One provides electric and water services to more than 190,000 customers in Orlando, St. Cloud and parts of unincorporated Orange and Osceola counties. OUC is the second-largest public power utility in Florida. |
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