Tenaska Proposes Nation s First New Conventional Coal-fueled Power Plant to Capture Carbon Dioxide

Transcription

1 FOR IMMEDIATE RELEASE February 19, 2008 Contact: Laurie Parker Elizabeth Christian Public Relations Tel: (512) Mobile: (512) Jana M. Martin, Tenaska, Inc. Tel: (402) Mobile: (402) Tenaska Proposes Nation s First New Conventional Coal-fueled Power Plant to Capture Carbon Dioxide Captured CO 2 would be sequestered in the Permian Basin and help recover more than $1 billion of West Texas oil annually ARLINGTON, Texas--Tenaska, Inc. is developing a site near Sweetwater, Texas, upon which to construct a technologically advanced coal-fueled electric generating plant able to capture up to 90 percent of the carbon dioxide (CO 2 ) that would otherwise enter the atmosphere. The carbon dioxide would be sold for use in enhancing oil production in the Permian Basin, resulting in geologic storage. An air permit application, the first formal step in gaining approval to build the plant, was filed today with the Texas Commission on Environmental Quality (TCEQ), according to David Fiorelli, president and CEO of Tenaska s Business Development Group. The proposed construction site is a 1,919-acre tract east of Sweetwater and north of Interstate 20 in Nolan County. The more than $3-billion project will provide a significant boost to the local economy, providing up to 2,000 jobs at peak construction and more than 100 permanent well paying jobs during operation. The final decision to proceed with the project will be made in 2009 based on a number of factors, including the availability of local, state and federal incentives; final project cost estimates; and projected market prices for electricity and CO 2. Current estimates of these factors make the project appear to be economically feasible. Speaking to a group of Sweetwater business leaders today, Bill Braudt, Tenaska s general manager of business development, said that the benefits of this proposed plant are many. It will provide a source of badly needed, environmentally sound electric generating capacity. This plant will use abundant and relatively low-cost coal and help keep Texas electricity prices in check. - more -

2 Page 2: Coal-fueled plant to capture carbon dioxide "It is exciting to see this innovation coming to West Texas, said Texas State Senator Robert Duncan. Tenaska's approach to energy generation through the capture of 90% of carbon dioxide and reduced water consumption is unique, and we West Texans pride ourselves on seeking new ways to achieve better results. We expect a strong partnership with Tenaska that will revolutionize this industry." Tenaska is working with Sweetwater area officials to determine the feasibility of the project and to provide accurate and timely information to Sweetwater area residents. Helen Manroe, manager of business development for Tenaska, meeting with Nolan County leaders, pointed out that the Tenaska Trailblazer Energy Center s captured CO 2 will make a major contribution to the Sweetwater and West Texas economies. The carbon dioxide produced and captured by this product will enable Texas to increase oil production and thus reduce the nation s dependence on foreign oil, she added. Nolan County is home to more wind turbines than any other place in the United States, said Nolan County Judge Tim Fambrough. The Tenaska Trailblazer Energy Center builds on this area s reputation as a location for progressive, environmentally responsible electric generation. We are delighted to welcome Tenaska to our community. If built, the plant will be the first new commercial coal-fueled power plant, other than small research projects, to capture and provide for storage of CO 2, considered by many a greenhouse gas that contributes to global climate change. As such, it would be a first-of-its-kind breakthrough in environmentally responsible electricity production that has been sought by Texas civic and business leaders, environmentalists and energy consumers. The CO2 would be captured and transported via pipeline to oil fields in the Permian Basin where it will be used in enhanced oil recovery and stored in the Basin s geologic formations. CO 2 has been used to increase oil production in West Texas for more than 30 years. The volume of CO 2 expected to be sold to oil producers could be used to recover enough oil to add more than $1 billion a year of oil production to the Texas economy. The approximately 600-megawatt (MW) plant would provide enough electricity to power about 600,000 homes. Construction could begin in late 2009 and be completed in more -

3 Page 3: Coal-fueled plant to capture carbon dioxide Tenaska is a privately held energy company, based in Omaha, Nebraska, that develops, constructs, owns and operates numerous generating plants. The company has developed four generating plants in Texas and continues to own and operate two, Tenaska Frontier Generating Station near Shiro and Tenaska Gateway Generating Station near Mt. Enterprise. A third plant, the Tenaska Kiamichi Generating Station near Kiowa, Oklahoma, also supplies electricity into Texas. Tenaska s power marketing company, Tenaska Power Services Co., is based in Arlington, along with Tenaska s Business Development Group 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, gas transportation systems, and electric transmission development. Tenaska has developed approximately 9,000 MW of electric generating capacity across the United States. Tenaska s affiliates own, operate and manage eight power plants in six states totaling more than 6,700 MW of generating capacity. Tenaska Capital Management, an affiliate, manages the Tenaska Power Fund, an entity that owns 12 power plants (with approximately 6,000 MW of capacity), gas storage facilities, and transmission infrastructure construction and maintenance operations. In 2006, Tenaska was listed in benchmarking studies by the Natural Resources Defense Council as having the best record in the United States for fleet-wide average emissions of nitrogen oxides and carbon monoxide. For more information about Tenaska, visit the company's Web site at ### More information about the Tenaska Trailblazer Energy Center and illustrations for press use may be obtained at ###

4 FOR IMMEDIATE RELEASE February 19, 2008 Contact: Jana M. Martin, Tenaska, Inc. Tel: 402/ Mobile: 402/ Holley Hatt, Tenaska, Inc. Tel: 402/ Mobile: 402/ Tenaska Proposes Carbon-capture Power Plant Near Sweetwater $3-billion plant to boost local economy, provide more than 100 jobs SWEETWATER, Texas Tenaska, Inc. is developing a site near Sweetwater upon which to construct a technologically advanced coal-fueled electric generating station able to capture up to 90 percent of the carbon dioxide (CO 2 ) that would otherwise enter the atmosphere. The carbon dioxide would be sold for use in enhancing oil production in the Permian Basin, resulting in geologic storage. An air permit application, the first formal step in gaining approval to build the plant, was filed today with the Texas Commission on Environmental Quality (TCEQ) according to David Fiorelli, president and CEO of Tenaska s Business Development Group, headquartered in Arlington. The proposed construction site is a 1,919-acre tract east of Sweetwater and north of Interstate 20 in Nolan County. The project will provide a significant boost to the local economy. Tenaska will invest more than $2 billion in construction. The total cost of the project is more than $3 billion. It will provide up to 2,000 jobs at peak construction and more than 100 permanent well-paying jobs during operation. The final decision to proceed with the project will be made in 2009 based on a number of factors, including local, state and federal incentives; final project cost estimates, and projected market prices for electricity and CO 2. Current estimates of these factors make the project appear to be economically feasible. (more)

5 Page 2: Coal-fueled plant to capture carbon dioxide "It is exciting to see this innovation coming to West Texas, said Texas State Senator Robert Duncan. Tenaska's approach to energy generation through the capture of 90% of carbon dioxide and reduced water consumption is unique, and we West Texans pride ourselves on seeking new ways to achieve better results. We expect a strong partnership with Tenaska that will revolutionize this industry." Speaking to a group of Sweetwater business leaders today, Bill Braudt, Tenaska general manager of business development, said that the benefits of this proposed plant are many. It will provide a source of badly needed, environmentally sound electric generating capacity. This plant will use abundant and relatively low-cost coal and help keep Texas electricity prices in check. Tenaska is working with Sweetwater area officials to determine the feasibility of the project and to provide accurate and timely information to Sweetwater area residents. "This power plant would be an enormous benefit to Sweetwater, Nolan County, and West Texas, Texas Representative Susan King said. Along with jobs and increased energy production, we would have a facility that is on the cutting edge of environmentally conscious technology. This type of project demonstrates the spirit and willingness of the Big Country to take the lead in working toward a brighter future. We look forward to working with Tenaska on this project." Helen Manroe, Tenaska manager of business development, meeting with Nolan County leaders, pointed out that the Tenaska Trailblazer Energy Center s captured CO 2 will make a major contribution to the Sweetwater and West Texas economies. The carbon dioxide produced and captured by this project will enable Texas to increase oil production and thus reduce the nation s dependence on foreign oil, she added. Tenaska is encouraged by the positive response it has received from the Sweetwater and Nolan County leadership, Manroe said. Nolan County is home to more wind turbines than any other place in the United States, said Nolan County Judge Tim Fambrough. The Tenaska Trailblazer Energy Center builds on this area s reputation as a location for progressive, environmentally responsible electric generation. We are delighted to welcome Tenaska to our community. If built, the plant will be the first new conventional coal-fueled power plant, other than small research projects, to capture and provide for storage of CO 2, considered by many to be a greenhouse gas that contributes to global climate change. (more)

6 Page 3: Coal-fueled plant to capture carbon dioxide As such, it would be a first-of-its-kind breakthrough in environmentally responsible electricity production that has been sought by Texas civic and business leaders, environmentalists and energy consumers. The CO 2 would be captured and transported via pipeline to oil fields in the Permian Basin where it will be used in enhanced oil recovery and stored in the Basin s geologic formations. CO 2 has been used to increase oil production in West Texas for more than 30 years. The volume of CO 2 expected to be sold to oil producers could be used to recover enough oil to add more than $1 billion a year of oil production to the Texas economy. The approximately 600-megawatt (MW) plant would provide enough electricity to power about 600,000 homes. Construction could begin in late 2009 and be completed in Tenaska is a privately held energy company, based in Omaha, Nebraska, that develops, constructs, owns and operates numerous generating plants. The company has developed four generating plants in Texas and continues to own and operate two, Tenaska Frontier Generating Station near Shiro and Tenaska Gateway Generating Station near Mt. Enterprise. A third plant, the Tenaska Kiamichi Generating Station near Kiowa, Oklahoma, also supplies electricity into Texas. Tenaska s power marketing company, Tenaska Power Services Co., is based in Arlington, along with Tenaska s Business Development Group 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, gas transportation systems, and electric transmission development. Tenaska has developed approximately 9,000 MW of electric generating capacity across the United States. Tenaska s affiliates own, operate and manage eight power plants in six states totaling more than 6,700 MW of generating capacity. Tenaska Capital Management, an affiliate, manages the Tenaska Power Fund, an entity that owns 12 power plants (with approximately 6,000 MW of capacity), gas storage facilities, and transmission infrastructure construction and maintenance operations. (more)

7 Page 4: Coal-fueled plant to capture carbon dioxide In 2006, Tenaska was listed in benchmarking studies by the Natural Resources Defense Council as having the best record in the United States for fleet-wide average emissions of nitrogen oxides and carbon monoxide. For more information about Tenaska, visit the company's Web site at ### More information about the Tenaska Trailblazer Energy Center and illustrations for press use may be obtained at ###

8 \ News Release FOR IMMEDIATE RELEASE June 12, 2008 Media Contact: Jana Martin Office: (402) Mobile: (402) or Power Developer Tenaska Suggests National Carbon Capture Solutions to Congress WASHINGTON Technologies exist to generate clean and abundant electricity with America s vast domestic fuel resources and effectively address climate change if the country has the will to respond to the challenge, an energy industry authority testified Thursday. If not, the United States faces a future of sharply rising electricity prices and declining reliability, with the country s supply of baseload generating capacity shrinking as older plants are retired, said Dr. Gregory Kunkel, vice president of environmental affairs for Tenaska, Inc. Tenaska, a privately-held energy company based in Omaha, Nebraska, is one of few companies in the U.S. that is actively pursuing development of power plants that use advanced technologies to strictly limit emissions. This includes capture and geologic storage of the greenhouse gas carbon dioxide (CO 2 ). Construction of the next generation of clean power plants can begin as soon as firm public policies on climate change are established, said Kunkel in testimony before the House Subcomittee on Energy and Mineral Resources. Tenaska is proposing to develop two advanced coal-fueled power plants that could be among the first power plants in the U.S. to introduce carbon capture technology. The Taylorville Energy Center in Illinois ( would be an integrated gasification combined-cycle plant that would reduce emissions and potentially capture and store CO 2. The conventional pulverized coal Tenaska Trailblazer Energy Center in Texas ( also would reduce emissions, capture CO 2 and transport it via pipeline for use in enhanced oil recovery in the Permian Basin petroleum production area. - MORE -

9 Page 2 of 3 Tenaska Suggests Carbon Capture Solutions To encourage these kinds of projects, Kunkel said, Congress and energy regulators must focus on providing clear and certain regulatory policies. We who are ready to step up and develop clean energy sources cannot be expected to make these multibillion-dollar investments in an energy policy vacuum. Among government policies that will give developers the needed confidence to proceed with clean energy projects, he said, are: Cap-and-trade programs that include some free allocation of emission allowances for new sources and bonus allowances for early construction of generation units with carbon capture and storage. Government auction of greenhouse gas emission allowances to regulated entities, with proceeds directed to construction of early carbon capture and storage projects or performance payments for demonstrated sequestration. Recognition of enhanced oil recovery eligibility for the same benefits as other CO 2 sequestration mechanisms. Investment tax credits and accelerated depreciation on major carbon capture and storage equipment. Technologies to produce electricity virtually emission- and greenhouse gas-free are here today, and, as demonstrated by our proposal to build the Trailblazer plant, Tenaska is willing to be at the forefront of development, Kunkel said. We and other potential developers just require clear and beneficial government policies that will help mitigate the substantial risks inherent in taking that upfront position. About Tenaska Tenaska is one of the largest independent power producers in the United States. Forbes magazine ranks Tenaska as 26th among the 424 largest privately-held U.S. companies, based on 2006 revenues. Tenaska has developed approximately 9,000 MW of electric generating capacity across the United States. Tenaska affiliates currently operate and manage eight power plants totaling approximately 6,800 MW that it owns in partnership with other companies. Tenaska is headquartered in Omaha, Nebraska, with offices in Dallas, Texas; Denver, Colorado; and Calgary, Alberta Canada. Tenaska affiliates also market natural gas, electric power and biofuels, with Tenaska s natural gas marketing affiliate rated as one of the top ten natural gas marketers in North America. Tenaska affiliates are also involved in private equity fund and acquisition management, fuel supply, gas transportation systems and electric transmission development. For more information about Tenaska, visit the company's Web site at - MORE -

10 Page 3 of 3 Tenaska Suggests Carbon Capture Solutions About Dr. Gregory Kunkel As Tenaska vice president of environmental affairs, Kunkel directs environmental compliance, permitting and water resource development activities. He assures compliance with environmental requirements, including management systems, compliance monitoring and reporting, and technical support. In addition, Kunkel directs environmental commodity transactions, including emission allowance and emission reduction credits; domestic and international carbon credits; and development of carbon dioxide offset, capture, sequestration and delivery arrangements. He has led successful environmental efforts in 14 states and five foreign countries for Tenaska projects. Kunkel earned bachelor s and master s degrees in biology from the University of Colorado at Boulder. He received his doctorate in botany from the University of California at Davis

11 News Release FOR IMMEDIATE RELEASE June 18, 2008 Media Contact: Jana Martin Office: (402) Mobile: (402) or Tenaska Announces Non-Binding Open Season for CO 2 OMAHA, Nebraska -- Tenaska Trailblazer Partners, LLC (TTP), an affiliate of Tenaska, Inc., is conducting a non-binding open season for the sale of carbon dioxide (CO 2 ) that may be produced by the proposed Tenaska Trailblazer Energy Center (TTEC) under development near Sweetwater in northeast Nolan County, Texas. The proposed TTEC would be a supercritical pulverized coal electric generating plant with post-combustion capture of CO2. The plant will be designed to capture 85 to 90 percent of the CO 2 produced by combustion and deliver it via pipeline to Permian Basin oil fields for use in enhanced oil recovery and. ultimately, geologic storage. The estimated commercial operation date is June 1, TTP estimates the TTEC will capture up to 300 million standard cubic feet per day (MMSCFD). A bidder can propose to purchase any amount up to and including 300 MMSCFD. By submitting a non-binding proposal, bidders are expressing interest in contracting for CO 2 under the terms set out in the bid response form. Bid response forms will be ranked by economic value as determined by payment, term, delivery point and other factors selected by TTP. Interested parties should submit a proposal no later than 5 p.m. central time on August 22, 2008 via to jjames@tnsk.com. Further information regarding this non-binding open season, including the bid response form and other specifications, is available from Jeff James, director of business development, Tenaska, Inc., (817) , jjames@tnsk.com. -more-

12 TTEC Open Season Press Release Add one About Tenaska Tenaska is one of the largest independent power producers in the United States. Forbes magazine ranks Tenaska as 26th among the 424 largest privately-held U.S. companies, based on 2006 revenues. Tenaska has developed approximately 9,000 megawatts of electric generating capacity across the United States. Tenaska affiliates currently operate, manage and own in partnership with other companies eight power plants in six states totaling approximately 6,800 MW of generating capacity. Tenaska is headquartered in Omaha, Nebraska, with offices in Dallas, Texas; Denver, Colorado; and Calgary, Alberta Canada. Tenaska affiliates also market natural gas, electric power and biofuels with Tenaska s natural gas marketing affiliate rated as one of the top ten natural gas marketers in North America. Tenaska affiliates are also involved in private equity fund and acquisition management, fuel supply, gas transportation systems and electric transmission development. For more information about Tenaska, visit the company's Web site at

13 \ News Release FOR IMMEDIATE RELEASE July 31, 2008 Media Contacts: Jana Martin Office: (402) Mobile: (402) or Holley Hatt Office: (402) Mobile: (402) or Tenaska Opens Local Community Relations Office for Trailblazer Energy Center Project SWEETWATER, Texas Tenaska has opened a community relations office in Sweetwater, Texas, to assure Nolan County residents have access to information about the company s plans to develop and construct a technologically advanced coal-fueled electric generating station east of Sweetwater. The office will be a designated location for citizens to contact Tenaska Community Representative Lloyd Harris, and will be located at the Texas National Bank Building, 400 E. Broadway, Suite 110, Sweetwater, TX Harris, who will staff the office on a part-time basis, can be reached by phone at 325/ and by at harrisl@tenaska.com. Tenaska is committed to open, two-way communication with the businesses and residents of Nolan County. One of the best ways to make that happen is to have a representative of Tenaska right here in Sweetwater who s only a local phone call and a few blocks away, said Helen Manroe, Tenaska manager of business development. Harris has been a resident of Sweetwater for 32 years. He retired in 2005 from Texas National Bank, where he served as executive vice president. He currently serves on the Texas National Bank board of directors. Harris and his wife, Melba, have two grown children. Tenaska has developed 12 power projects over the last 20 years, Manroe said. We understand that having a local presence in the community from the very beginning of the development process is helpful in providing information and answering questions. - MORE -

14 Page 2: Tenaska Opens Community Relations Office Sweetwater and Nolan County will see tremendous economic benefits, should this project become a reality, Harris said. The Tenaska Trailblazer Energy Center will be the first new commercial coal-fueled power plant in the nation, other than small research projects, to capture and provide for storage of carbon dioxide (CO 2 ), considered by many a greenhouse gas that contributes to global climate change. After the CO2 is captured, it will be transported via pipeline to oil fields in the Permian Basin where it will be used in enhanced oil recovery and stored in the Basin s geologic formations. The volume of CO 2 expected to be sold to oil producers could be used to recover enough oil to add more than $1 billion a year of oil production to the Texas economy. Construction, anticipated to begin in 2009, will take about five years and cost more than $2 billion; financing and other expenses will bring the total cost to $3 billion or more. Up to 1,500 to 2,000 workers will be hired during peak construction periods. The Trailblazer Energy Center will employ approximately 100 people in well-paying, permanent jobs when in operation. The approximately 600-megawatt (MW) plant would provide enough electricity to power about 600,000 homes. 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 and management, fuel supply, gas transportation systems, and electric transmission development. Tenaska has developed approximately 9,000 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. For more information about Tenaska, visit the company's Web site at More information about the Tenaska Trailblazer Energy Center may be obtained at

15 News Release FOR IMMEDIATE RELEASE September 15, 2008 Media Contacts: Holley Hatt Office: (402) Mobile: (402) or Jana Martin Office: (402) Mobile: (402) or Tenaska Purchases 505 Acres for More Direct Access to Proposed Energy Center Site SWEETWATER, Texas Tenaska has purchased land adjacent to its proposed site near here to provide more direct access to the Tenaska Trailblazer Energy Center property. The action will allow Tenaska to route construction traffic to the site directly from the Interstate 20 access road. The new access will keep most of the traffic away from residents near the site, should Tenaska decide to build there. Tenaska initially purchased a 1,919-acre site east of Sweetwater that is being developed as the plant s location. The additional acreage will increase the site to more than 2,400 acres. Access through the newly-acquired acreage will eliminate the need to bring vehicles and equipment to the construction site via Eskota or Stink Creek Roads, said Helen Manroe, Tenaska manager of business development. As a result, the effect of construction on our neighbors will be greatly minimized. Tenaska is continuing project development pending enactment of federal carbon legislation; awards of state incentives approved by the Texas Legislature; availability of local incentives; and issuance of necessary permits. Trailblazer construction is targeted to begin in 2009, with commercial operation in The 600-megawatt electric generating plant will be the first commercial-scale power plant in the United States to capture carbon dioxide (CO 2 ). Tenaska plans to transport the CO 2 via pipeline to the Permian Basin for use in enhanced oil recovery. - MORE -

16 Page 2: Tenaska Purchases 505 Acres The Tenaska Trailblazer Energy Center will make a significant contribution to the Sweetwater area economy and will enhance the city s growing reputation as the clean energy capital of Texas, Manroe said. Tenaska did not release details of the land purchase. 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 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, provides management services for private equity funds, with more than $3 billion in assets, including nine power plants (with approximately 5,000 MW of capacity), gas storage facilities, and transmission infrastructure construction and maintenance operations. For more information about Tenaska, visit the company's Web site at More information about the Tenaska Trailblazer Energy Center and illustrations for press use may be obtained at

17 News Release FOR IMMEDIATE RELEASE January 9, 2009 Media Contacts: Jana Martin Office: (402) Mobile: (402) or Holley Hatt Office: (402) Mobile: (402) or Hundreds of Signatures Supporting Property Tax Abatement for Trailblazer Project Presented to County Commissioners SWEETWATER, Texas Petitions bearing more than 575 signatures from area residents supporting a 10-year property tax abatement for the Tenaska Trailblazer Energy Center today were presented to the Nolan County Judge and Commissioners. Those signing the petition said they were doing so to bring this opportunity one step closer to fruition. Developers of the Tenaska Trailblazer Energy Center have requested a 75 percent property tax abatement for the first ten years that the plant is in operation. Even with the abatement, Tenaska estimates the company would pay up to $45 million, under current law using the current tax rates, to Nolan County during the five-year construction and 10-year abatement period. Letters of support for the project itself already have been sent to the Commissioners by the Sweetwater Enterprise for Economic Development (SEED) Board of Directors, the Sweetwater City Commission, the Sweetwater Industrial Foundation, and the Sweetwater Chamber of Commerce. The SEED and Industrial Foundation letters specifically support the 75 percent, 10- year property tax abatement. We are extremely gratified by this overwhelming show of support, said Helen Manroe, Tenaska s manager of business development. Tenaska looks forward to bringing all of the economic benefits associated with the project to Nolan County s citizens. Volunteer petition circulators from Nolan County obtained the long list of signatures in late December and early January. Lloyd Harris, community representative for Tenaska, coordinated the signature gathering. - MORE -

18 Page 2: Signatures Supporting Tenaska Trailblazer Tax Abatement Presented The Tenaska Trailblazer Energy Center would be the first conventional coal-fueled power plant in the nation to capture on a commercial scale up to 90 percent of the carbon dioxide (CO 2 ) that would otherwise enter the atmosphere. The facility would generate enough baseload electricity to serve the needs of about 600,000 households. Plans are to construct the power generating facility east of Sweetwater and transport the captured CO 2 via pipeline to the Permian Basin for use in enhanced oil recovery, an activity expected to add millions of dollars a year to the Texas economy. Construction could begin in late 2009 and be completed in About Tenaska Tenaska is a privately held energy company, based in Omaha, Nebraska, that develops, constructs, owns and operates electric generating plants. The company has developed four plants in Texas and continues to own and operate two, Tenaska Frontier Generating Station near Shiro, Texas, and Tenaska Gateway Generating Station near Mt. Enterprise, Texas. A third plant, the Tenaska Kiamichi Generating Station, near Kiowa, Oklahoma, also supplies electricity for Texas. Tenaska s power marketing company, Tenaska Power Services Co., is based in Arlington, along with Tenaska s Business Development Group. A copy of the petition language is attached. More information about the Tenaska Trailblazer Energy Center and illustrations for press use may be obtained at ###

19 Page 3: ATTACHMENT Signatures Supporting Tenaska Trailblazer Tax Abatement Presented Below is the text of the petition signed by more than 575 individuals: Open Letter to the Nolan County Commissioners About the Tenaska Trailblazer Energy Center Nolan County has been presented with the opportunity to bring the Tenaska Trailblazer Energy Center, a multi-billion dollar, cutting-edge coal-fueled electric generating station to our county. The project would bring significant economic benefit to the county and enhance our image as the clean energy capital of the world. According to an economic impact study conducted by TXP, Inc. (TXP), an Austin economic analysis and public policy consulting firm, the Trailblazer project would bring well-paying jobs with benefits, an injection of local buying power, new tax revenue to support local services and enhanced oil production in the Permian Basin all of which will mean renewed opportunities for long-term growth and prosperity in the region. At the peak of the project s five-year construction period, the project would employ approximately 1,500 construction workers. During construction, TXP estimates the project would result in $742 million in added economic activity in Nolan and surrounding counties. Once the project is completed, it would be directly responsible for about 105 good, permanent jobs and indirectly responsible for about another 71 jobs. TXP estimates the project would result in more than $300 million annually in added economic activity. Tenaska has asked you to consider a 75 percent abatement of taxes for the first 10 years of the project s operation. Under current law, this translates to an estimated abatement of $65 million, which represents less than 19 percent of the taxes the project would otherwise pay if no abatement were granted. If the abatement is granted as requested, Tenaska estimates that at current tax rates it would pay about $24 million in county taxes alone during the five-year construction period and another $268 million in taxes during the 50-year life of the project. We, the undersigned, support this project and ask you to approve Tenaska s requested abatement in order to bring this opportunity one step closer to fruition.

20 News Release FOR IMMEDIATE RELEASE January 30, 2009 Media Contacts: Holley Hatt Office: (402) Mobile: (402) or Jana Martin Office: (402) Mobile: (402) or Tax Abatement Granted for Tenaska Trailblazer Energy Center SWEETWATER, Texas A property tax abatement granted Monday by the Nolan County Commissioners Court has moved the proposed next-generation Tenaska Trailblazer Energy Center to be located East of Sweetwater one important step closer to reality. On January 26, the Nolan County Commissioners Court established the Nolan County Trailblazer Energy Center Reinvestment Zone and approved a 10-year, 75 percent tax abatement beginning in 2015, the plant s first full year of commercial operation after it goes online in The proposed 600-megawatt (net) electric generating facility will be the first commercialscale, conventional coal-fueled power plant in the U.S. to capture 85 to 90 percent of the carbon dioxide (CO 2 ) byproduct, a greenhouse gas considered by many to be associated with global climate change, and prevent its release into the air. The tax abatement, which is consistent with other abatements granted in Texas to encourage industrial development, is an important factor in Tenaska s decision-making process. The company expects to make its final decision on whether to proceed with construction of the project late in MORE-

21 Page 2 of 3: Tax Abatement Granted We very much appreciate the unanimous vote by the County Commissioners to approve the reinvestment zone designation and related tax abatement, said Dave Fiorelli, president and CEO of Tenaska s Business Development Group. Their vote, plus the endorsement of hundreds of Nolan County residents, affirms that we have the local support needed to pursue this revolutionary clean energy development. Although this vote was very important to the Trailblazer Energy Center, it is only one piece of the development puzzle, Fiorelli explained. He said some of the next steps in development will include selecting an engineering, procurement and construction ( EPC ) contractor, seeking necessary federal and state incentives, securing a transmission interconnection agreement with the Electric Reliability Council of Texas (ERCOT), and obtaining customers for the electricity produced and CO 2 captured by the plant. The captured CO 2 would be sent via pipeline to the Permian Basin for use in enhanced oil recovery and geologic storage. The Texas Commission on Environmental Quality is expected to publish for public review a draft air quality permit in early February. Under agreement with Commissioners Court, the Trailblazer Energy Center will pay 100 percent of its county tax obligation during the construction period. Using current law and the current tax rates, payments made during the five-year construction period could total as much as $24 million. During the abatement period, the plant will provide up to $2 million in county taxes annually, based on current tax rates and under current law. The agreement also provides that Tenaska will use reasonable efforts to maximize use of Nolan County businesses in construction, operation and maintenance of Trailblazer, and will require its construction contractor to designate a coordinator of local services. According to a study by TXP, Inc. (TXP), an Austin economic analysis and public policy consulting firm, the project would provide: 1,500 jobs 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; more than $1 billion in taxable property to Nolan County s tax rolls; and more than 10 million additional barrels of oil per year in the Permian Basin due to increased enhanced oil recovery operations. -MORE-

22 Page 3 of 3: Tax Abatement Granted Tenaska also expressed appreciation to the city of Sweetwater, the Sweetwater Enterprise for Economic Development, Sweetwater Chamber of Commerce, Sweetwater Industrial Foundation, Wes-Tex Groundwater Conservation District and the citizens of Nolan County for their support. About Tenaska Tenaska is one of the largest privately-owned energy companies. Forbes and Fortune magazines rank Tenaska 24 th and 25 th, 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 or

23 News Release FOR IMMEDIATE RELEASE March 25, 2009 Media Contacts: Linda Pavlik Office: (817) Mobile: (817) or Jana Martin Office: (402) Mobile: (402) or Tenaska: Texas Leads Nation in Broad-based Clean Energy Solutions House Bill Will Support Development of Current and Future Clean Power Plants AUSTIN, Texas Proposed legislation now before the Texas House of Representatives would help make Texas the national leader in development of advanced clean energy technologies, Tenaska s vice president of Environmental Affairs testified here Wednesday. Dr. Gregory P. Kunkel testified in support of HB 2811, sponsored by State Rep. Rick Hardcastle, before the House Committee on Energy Resources. The bill would improve and build on HB 3732, Advanced Clean Energy Project legislation passed in the last session, which encourages power developers such as Tenaska to bring to Texas a variety of advancedtechnology, cutting-edge clean energy projects. Tenaska has purchased 2,400 acres of undeveloped land nine miles east of Sweetwater, in West Texas, on which to build the first commercial-scale, conventional coal-fueled power plant in the United States to capture 85 to 90 percent of the carbon dioxide (CO 2 ) that otherwise would be emitted and provide for its geologic storage. The Tenaska Trailblazer Energy Center, a 600- megawatt (net) generating plant, would ship the CO 2 to the Permian Basin for use in enhanced oil recovery. Let me stress that Trailblazer will be a commercial venture in every sense, not a pilot or field trial. Trailblazer is being designed to capture and provide for storage of CO advanced capture technology that is available today, Dr. Kunkel said. Cutting-edge technology projects such as Trailblazer face an early adopter premium. Dr. Kunkel said installation of the advanced carbon capture technology would add as much as a billion dollars to the cost of the plant, making it a more than $3 billion facility. - MORE - 2, using

24 Page 2: Tenaska: Texas Leads in Clean Energy Solutions Rep. Hardcastle s legislation would provide incentives to help offset the high costs of pioneering vital new technologies. For Texas, this kind of support represents an investment in the future, Dr. Kunkel said. The state needs new baseload electricity generation and also needs to maintain a cleaner environment. The Trailblazer development would offer an added benefit. The advanced carbon capture technology potentially could be retrofitted on existing pulverized coal generating plants in Texas and elsewhere, an advantage that other clean coal technologies cannot provide. Coal-fueled facilities currently supply the U.S. with more than half of its electricity generation capacity, and represent 20 percent of Texas generation capacity. This is why Trailblazer is a particularly strategic investment in a cleaner environment, Dr. Kunkel said. Technologies to produce electricity virtually emission- and greenhouse gas-free are here today, and, as demonstrated by our proposal to build Trailblazer, Tenaska is willing to be at the forefront of development, he said. We and other potential developers just require clear and beneficial government policies that will help mitigate the risks inherent in taking that upfront position. About Tenaska Tenaska is one of the largest privately-owned energy companies. Forbes and Fortune magazines rank Tenaska 24 th and 25 th, 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 or More information about the Tenaska Trailblazer Energy Center and illustrations for press use may be obtained at

25 News Release FOR IMMEDIATE RELEASE June 4, 2009 Media Contacts: Jana Martin Office: (402) Mobile: (402) or Holley Hatt Office: (402) Mobile: (402) or Texas Legislature Encourages Clean Energy Development Tenaska Trailblazer Energy Center Boosted by New Incentives AUSTIN, Texas The Tenaska Trailblazer Energy Center near Sweetwater, Texas, is significantly closer to reality with the Texas Legislature s passage of groundbreaking clean energy legislation. Legislation passed during the 81 st session that ended June 1 will help put into place state and local incentives that, together, continue to structure a practical framework for attracting to Texas investment in large capital-intensive projects such as Tenaska s Trailblazer project. Texas began taking bold steps to create these incentives in Trailblazer is proposed to be possibly the first conventional coal-fueled power plant in the world to capture 85 to 90 percent of its carbon dioxide (CO emitted into the air and provide for its geologic storage. The facility will be a source of essential and cost-effective baseload electricity generating capacity, meeting the around-the-clock needs of approximately 600,000 Texas homes. Tenaska s application for an air quality permit is pending before the Texas Commission on Environmental Quality (TCEQ). Trailblazer is the only Texas coal-fueled power plant with carbon capture equipment to have submitted an air permit application, having done so over 15 months ago. When Tenaska began development of the Trailblazer project, we recognized that our 2 ) that would otherwise be - MORE -

26 Page 2 of 3: Texas Legislature Encourages Clean Energy Development costs would be higher than those of others who follow our lead, said David Fiorelli, Tenaska president and CEO, Business Development. The incentives contained in the 2009 legislation recognize the cost of advancing the state s energy objectives, and will enable us to continue providing leadership in this area. 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. The technology used to capture CO 2 at Trailblazer also potentially can be retrofit to other coal-fueled power plants in Texas, thereby providing even greater benefits to the environment. As a plant that will capture and provide for the storage for 85 to 90 percent of CO emissions, Trailblazer is eligible for a state grant approved by the Legislature to help fund frontend engineering and design studies and related costs. New legislation also establishes a framework for regulation of CO2 sequestration and storage between the Railroad Commission of Texas and the TCEQ. CO 2 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 for more than 30 years. Another bill provides for 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 supply CO 2 for enhanced oil recovery, as Trailblazer would. The CO 2 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 establishes stringent air emission standards for nitrogen oxides, sulfur dioxide, particulate matter and mercury, all of which Trailblazer, with its highly advanced emissions controls, will meet. These standards set the bar higher to qualify for environmentbased incentives than any other state or national incentive program. Tenaska applauds the Texas Legislature on creating mechanisms and incentives that support pioneering companies such as ours, said Fiorelli. Today, Texas stands out among the - MORE - 2

27 Page 3 of 3: Texas Legislature Encourages Clean Energy Development 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. 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 About Tenaska Tenaska is one of the largest privately-owned energy companies in the United States. Forbes and Fortune magazines rank Tenaska 24 th and 25 th, 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 or