1.6.2004: Meldung: Calpine Corp.: 25-year Agreement With Dow Chemical
Friday May 28, 8:45 am ET
Company to Meet High Reliability Energy and Steam Requirements of Dow Facility in Freeport, Texas
SAN JOSE, Calif., May 28 / -- Calpine Corporation (NYSE: CPN - News) signed a 25-year agreement on May 25 with The Dow Chemical Company (Dow), Midland, Mich., for the sale of up to 200 megawatts of electricity and 1 million pounds per hour of steam to Dow"s Freeport, Texas, facility.
Under the agreement, Calpine will develop a modern, 250-megawatt, natural gas-fired cogeneration facility that will be constructed in phases and will begin the delivery of steam in 2005 and achieve fully operational status in 2006. The proposed facility will use one of Calpine"s existing F-class gas turbines, a steam turbine and four boilers to ensure reliability. Calpine expects to utilize project financing for the majority of the capital costs. A portion of Calpine"s equity in the project will be through the use of the natural gas combustion turbine from its existing inventory. Construction is expected to begin in June 2004.
"We are very pleased to be entering into our third project with Dow and further extending our mutually beneficial business relationship," said Calpine Marketing and Sales Vice President Peter Gross. "Calpine appreciates the opportunity to be part of Dow"s focus on reducing its energy costs while enhancing operations through more efficient and reliable power and steam generation," Gross added, noting, "Securing such long-term agreements with large industrial customers has served as the foundation for our presence in Texas."
The Dow Chemical Company is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to customers in more than 180 countries.
"We are very pleased with the efficiency improvement and flexibility that this plant will bring to Dow in Freeport as well as the continued good relationship with Calpine Corporation," said Bill Jewell, Dow"s Business Vice President for Energy.
Calpine"s plant at Dow"s Freeport facility will be Calpine"s 12th power plant in Texas, where Calpine is the largest independent power producer. With the Freeport facility, Calpine will own or lease eight cogeneration plants in Texas.
Calpine Corporation, celebrating its 20th year in power, is a leading North American power company dedicated to providing electric power to customers from clean, efficient, natural gas-fired and geothermal power plants. The company generates power at plants it owns or leases in 21 states in the United States, three provinces in Canada and in the United Kingdom. Calpine is also the world"s largest producer of renewable geothermal energy, and owns or controls approximately one trillion cubic feet equivalent of proved natural gas reserves in the United States and Canada. The company is listed on the S&P 500 and was named FORTUNE"s 2004 Most Admired Energy Company. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit http://www.calpine.com .
Source: Calpine Corporation