CP&L receives award to test new environmental technology at Cape Fear plant

RALEIGH, N.C., Aug. 2, 2002 -- The U.S. Department of Energy (DOE) has awarded $350,000 to CP&L, Wiley & Associates and MobotecUSA to test a new environmental technology at CP&L's Cape Fear plant.

A portion of the award will support furnace sorbent injection (FSI) trials at CP&L's Cape Fear Unit 5 generating unit in Moncure, NC.

The trial consists of injecting several sodium and calcium based chemicals into the furnace above the combustion zone. The trial will evaluate the NOX, SO2, and mercury reduction potential of the FSI technology when used in concert with the ROFA technology (rotating opposed fire air) from Mobotec.

"CP&L is committed to identifying, evaluating and implementing innovative technologies that improve the environmental performance of our plants," said Mike Williams, senior vice president for power operations at CP&L parent company, Progress Energy.

The only plant in the US currently using the ROFA technology, CP&L's Cape Fear plant uses the technology for reduction of NOX. The company is planning to install the ROFA technology at its Robinson plant near Hartsville, SC. The combination of the ROFA technology and the FSI may provide compliance and capital flexibility for small to medium sized generation units as an alternative to more expensive SO2 scrubber systems. Successful trial results could lay the groundwork for a longer-term demonstration project. The trial period is scheduled for October and November of this year.

"We are moving forward to meet North Carolina's aggressive emissions targets that exceed both Federal regulations and what other states have done," said Williams. "Innovative technologies such as the combination of ROFA and FSI may help us achieve those standards."

Earlier this year, Progress Energy supported new clean air legislation mandating significant reductions in emissions from the state's 14 coal-fired power plants. CP&L, a subsidiary of Progress Energy, operates 7 coal-fired power plants in North Carolina and provides electricity to 1.2 million customers in North Carolina and South Carolina.

Progress Energy is a Fortune 250 diversified holding company headquartered in Raleigh, N.C., with more than 20,000 megawatts of generation capacity and $8 billion in annual revenues. The company's diverse portfolio includes two major electric utility companies, CP&L and Florida Power, as well as NCNG, Progress Rail, Progress Telecom and Progress Ventures, which manages the company's non-regulated energy operations including fuel extraction, manufacturing and delivery; merchant generation; and energy marketing and trading. These companies serve 2.9 million customers across the Southeast, providing electricity, natural gas, energy services and broadband capacity. For more information about Progress Energy, visit the company's Web site at http://www.progress-energy.com/.

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