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Industry Announces Collaboration to Accelerate Deployment of Advanced Coal-Based Power Plants

Palo Alto, Calif. (November 11, 2004) - A number of leading coal-fired power generators and the Electric Power Research Institute (EPRI) have announced a new initiative, "CoalFleet for Tomorrow," to accelerate the deployment of clean, efficient, advanced coal technology and to develop options for managing the carbon dioxide emitted from power plants.

Coal-based power plants have long been the workhorse of the U.S. electricity system, producing more than half the power generated in this country. Globally, a number of leading economic powers also have large coal reserves. Power generating companies and government agencies concerned with maintaining long-term energy security and keeping electricity affordable look to coal as a fuel source worth sustaining.

A new generation of commercially viable advanced coal power systems must be available to meet the coming demand and to sustain coal in its critical role as the foundation of the U.S. and much of the world's generation portfolio.

Hank Courtright, EPRI's vice president of generation and distributed resources said, "The goal of this initiative is to preserve this abundant source of fuel as a vital component in the electricity generation mix. Work must begin now to ensure that the advanced coal technologies can establish a solid track record before large numbers of coal plant replacements become necessary. We see the need to get plants built and operating soon to gain experience with and reduce the cost of advanced coal plant technology."

"During the first year of this program, we will concentrate much of our effort on accelerating integrated gasification combined cycle (IGCC) technology into the market in the 2005 to 2015 timeframe."

IGCC combines the high efficiency of gas turbine power systems with the ability to run on coal and other low-cost solid or heavy-liquid fuels. In addition, IGCC units have demonstrated extremely low emissions of sulfur, mercury, and nitrogen oxides.

Courtright added, "Over the program's lifetime we will address a balanced portfolio of advanced coal technologies including ultrasupercritical pulverized coal and supercritical circulating fluidized bed combustion, and examine how these technologies will perform with different types of coal. We will also be increasing our understanding of the options for capturing and sequestering carbon dioxide, and determining potential beneficial uses for it. We plan to ensure the commercial availability and operation of all these technologies by 2015 to 2020."

To provide technical oversight and direction for the initiative, CoalFleet will form a world-class expert working group composed of early deployment plant owners, core funders, government experts, EPRI technical staff, and selected industry experts. The collaborative program will coordinate efforts, as appropriate, with the R&D efforts of the U.S. Department of Energy and other research organizations.

Participation is open to all interested parties with a stake in the future use of coal for power generation. These include power companies, coal companies, rail companies, architect/engineering firms, equipment and process suppliers, and government organizations.

To-date, 18 companies have either committed or expressed a strong interest in participating in the program: American Electric Power, Ameren, Associated Electric Cooperative, Inc., Cinergy, Duke Energy, FirstEnergy, Fluor Corporation, Great River Energy, LG&E Energy, New York Power Authority, PacifiCorp, Progress Energy, Public Service Company of New Mexico, Seminole Electric Cooperative, Southern Company, Tri-State Generation & Transmission Assoc., TXU, and Wisconsin Public Service Corporation.

For more information, contact the EPRI Customer Assistance Center (EPRI CAC) at 800-313-3774 or askepri@epri.com or view http://www.epriweb.com/public/corp_CoalFleet.pdf.

EPRI, headquartered in Palo Alto, Calif., was established in 1973 as an independent, non-profit center for public interest energy and environmental research. EPRI's collaborative science and technology development program now spans nearly every area of power generation, delivery and use. More than 1,000 energy organizations and public institutions in 40 countries draw on EPRI's global network of technical and business expertise.

EPRI

3412 HILLVIEW AVENUE

PALO ALTO, CA 94304

WWW.EPRI.COM

Contact:

Jackie Turner (650) 855-2272

jturner@epri.com

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