American Electric Power and Dow Chemical are moving forward withplans to construct a $325 million natural gas-fired cogenerationplant at Dow’s chemical complex in Plaquemine, LA. AEP also signeda 20-year contract for an undisclosed amount to sell all of thefacility’s 900 MW generation to Tractebel SA’s energy marketingunit once it is online, expected in early 2003.

Construction, scheduled to begin this year, was first announcedlast June (see Daily GPI, June 28,2000). Columbus, OH-based AEP will develop the state-of-the-artfacility and subsidiary AEP Pro Serv will assume contractresponsibilities. Dow will operate the facility, which will be fueledby AEP’s Louisiana Interstate Gas Pipeline. About 620 MW of baseloadcapacity will come from four General Electric gas turbines operatingin combined cycle and 280 MW of peaking capacity.

“This project is another example of AEP’s ability tosuccessfully link its technical and commercial skills to meet ourcustomers’ needs,” said Paul Addis, AEP executive vice president.”This new facility will bring generating capacity to Louisianausing environmentally friendly and energy-efficient technology,while at the same time allowing Dow to achieve greater energyefficiency in its core business.”

Noting that Dow had generated its own power at the Plaqueminefacility since 1957, R.W. Jewell, Dow’s energy business director,said the power plant would enable Dow to become more energyefficient in producing more than 50 different products in 23 units.Jewell said Dow has “long standing commitment to cogeneration”because the technology combines “efficiency gains with a reducedimpact on the environment.”

For Tractebel, the energy arm of Suez Lyonnaise des Eauxheadquartered in Belgium, the transaction is expected to help thecompany expand its trading abilities “without immediate investmentin parallel with our energy marketing and related energy servicesin North America,” said Dirk Beeuwsaert, CEO of the company’sinternational electricity and gas division. Tractebel now owns andoperates 23 power generating facilities with 2,335 MW of electricand thermal energy worldwide.

Tractebel’s North American projects include two merchant powerplants under construction and two other projects in advanceddevelopment stages worth about 2,000 MW. It recently completed itsacquisition of Cabot LNG near Boston for about $680 million (see DailyGPI, July 14, 2000).

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