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Hunton Energy Announces $2.4 Billion Clean Energy Power Plant

Posted on: Wednesday, 24 January 2007, 15:01 CST

Hunton Energy, a Texas-based independent power producer, announces the development of a new power generation plant slated to provide clean energy at lower costs to area schools, hospitals and local Fort Bend County government entities. The estimated $2.4 billion Lockwood IGCC Plant will consist of two phases with the first phase scheduled for a 1Q 2008 groundbreaking. The plant will use patented processes to gasify a petroleum byproduct, ultimately generating 1200 MW of power with some of the lowest negative emissions of any plant in the USA.

An integrated gasification combined cycle (IGCC) power generation configuration is a clean, efficient means of producing electricity from coal or petroleum residues such as "pet coke." The Lockwood Plant will use pet coke as its primary fuel; pet coke (petroleum coke) is a refinery byproduct with properties similar to coal. As the pet coke is processed, a high efficiency gas turbine burns the resulting clean gases. The heat from this process is captured and used to drive a steam turbine thereby maximizing the generation of electricity. Every byproduct of the process is captured and used or sequestered, including elements such as mercury, sulfur and CO2.

"IGCC is an energy solution for the future," says Rocky Sembritzky, president of Hunton Energy. "Using gasification of pet coke, a byproduct fuel readily available on the Gulf Coast, to generate electricity makes a great deal of sense. It is cheaper and cleaner than coal and other technologies, resulting in financial as well as environmental savings."

Hunton Energy, a division of the Hunton Group, is represented by the law firm of Andrews Kurth LLP as well as URS for technical oversight and permitting. A 200-acre site is under contract subject to the successful negotiation of appropriate tax incentives, and a long-term supply arrangement with Valero Energy Corporation to receive pet coke for processing in return for power generated at the plant also is in place. Hunton Energy is participating in ongoing discussions with consortiums led by General Electric and ConocoPhillips regarding the gasification process to be selected for the Lockwood Project. "We anticipate executing a letter of intent with either the GE or ConocoPhillips teams in early first quarter 2007," says Richard Hunton Jr, executive VP. The permitting process is underway and the permit will be filed in the first quarter of this year.

While most power producers have shied away from the changes required to develop and implement IGCC, Hunton Energy has embraced fully the technology as well as the challenge to be the first power producer to bring IGCC to the state of Texas. "We will be the first company in the nation to provide clean, low-cost electricity using a refinery byproduct and the first to offer a long-term fixed price for electricity," says Sembritzky.

"We're excited about Hunton Energy's contribution to Fort Bend County," says Robert Hebert, PhD, county judge. "As the fastest-growing county in Texas, we depend on partners who can supply the needs of our future."

Protecting the environment by lowering carbon dioxide (CO2) emissions is also a goal of Hunton Energy. "The Lockwood Project will verify that it is possible for this country to have lower and more stable electricity costs, lower emissions and CO2 sequestration, all at the same time," says R.O. Hunton, chairman of the Hunton Group.

Hunton Energy is entering the Fort Bend power markets with the rarest species of recommendations -- an endorsement from an environmental watchdog group, Public Citizen. "This is the first power plant in Texas to make a commitment to sequestering its carbon emissions before construction," says Tom Smith, director of Public Citizen's Texas office. "I hope this sets a standard across the state. Hunton Energy is a good corporate citizen on many levels: First they have significantly lowered their CO2 emissions, one of the leading causes of global warming. Second, they are producing clean and usable byproducts at every stage of their process. Third, their environmental impact plan places the Lockwood plant in harmony with the environment."

"The Lockwood Plant will be a significant economic asset to the Fort Bend community once fully operational," says Jeffrey C. Wiley, president of the Greater Fort Bend Economic Development Council. "It promises to bring savings and energy price stability to Fort Bend County local governmental entities, become one of Fort Bend County's top commercial taxpayers, and deliver needed additional energy to our area using new technology that significantly reduces emissions -- which is vital to the Houston region."

"The Lockwood plant is also a significant job creator for the Fort Bend community and is expected to create over 1,200 new construction jobs while under development and 150 permanent jobs for Texas," says R.C. Brown, chairman of the Texas Energy Center, located in Sugar Land, Texas. "This project is crafted with Texas in mind and realizes a key objective of the Texas Energy Center, to develop new technology applications that meet the energy challenges of tomorrow and continue the long tradition of Texas leading the way in energy innovation."

According to the latest U.S. Department of Energy figures, independent power producers -- such as Hunton Energy -- are providing more than 25% of the nation's energy needs. "The growth of reliable, independent producers has helped the nation's power grid keep up with increasing demand," says Sembritzky. "As an independent firm, we're often able to act more quickly, bringing innovations and savings to the public."

For more information, contact Robin Paoli, rpaoli@mmihouston.com, at 713.523.7900, ext 108.

Hunton Energy is a privately-owned independent power producer headquartered in Houston. The company's efforts are focused on clean energy and gasification technologies. Hunton Energy's management has more than 30 years experience in independent power production, energy marketing and asset development.

Source: Business Wire

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