Burlington, MA, Dec. 19, 2002 -- Governor George H. Ryan announced recently the issuance of a construction permit for the first new mine-mouth coal-fired electric plant in Illinois in more than three decades - a 91-megawatt project Corn Belt Energy Corporation plans to build in southern Logan County.

"This administration has had an ongoing commitment to Illinois coal," said Governor Ryan. "The Corn Belt Generation Cooperative Power Plant project is just one of several promising proposals that will benefit the coal industry."

Corn Belt, an electric cooperative headquartered in Bloomington, IL, will build the $147 million plant adjacent to the Turris Coal Company mine near Elkhart. The air pollution control construction permit was issued by the Illinois Environmental Protection Agency.

The Corn Belt Generation Cooperative Power Plant's advanced U-fired boiler system, supplied by Babcock Borsig Power, Inc.,(BBPI) a subsidiary of the recently formed Babcock Power Inc, will be one of the most advanced clean-coal boiler systems in the nation.

The boiler is designed to maintain high thermal efficiency while minimizing emissions and producing a vitrified saleable ash. It is the first new coal-fired boiler in the state equipped with a selective catalytic reduction (SCR) system to control NOx as part of its original design.

According to Bruce Leblanc, President, BBPI, "Coal generates over 50% of this nation's electrical power. It is a vital part of our country's economy and national security. Our company is very proud to have this opportunity to participate in this program and demonstrate how coal can be used to generate clean, competitive power."

"The innovative technology to be used at the new plant exemplifies Illinois' goal of developing clean burning technology that allows Illinois coal to be used without compromising air quality," noted Illinois EPA Director Renee Cipriano.

The Corn Belt Generation Cooperative Power plant project is part of a U.S. Department of Energy test program to develop technology that will enhance the use of coal nationally.

The proposed project will use approximately 380,000 tons of coal per year and create more than 50 new jobs for the area. Its output will allow Corn Belt and other rural electric cooperatives to meet the future needs of their customers.

For demonstrating cleaner burning uses of Illinois coal, Corn Belt will receive about $25 million in subsidies from the state, including a grant of $23 million from the Illinois Coal and Energy Development Bond Fund, administered by the Illinois Department of Commerce and Community Affairs. The state's share of the funds will come from the on-going Coal Demonstration Program.

In addition to the grants issued by DCCA, the project will receive $25 million from the U.S. Department of Energy Clean Low Emission Boiler System Program and has been awarded $2 million by the Illinois Clean Coal Review Board through Southern Illinois University at Carbondale.

"Through the support of Governor Ryan, Congressman Ray LaHood and many others, Illinois will be able to demonstrate some of the newest and best technology available to burn Illinois coal in an environmentally friendly way, while at the same time creating Illinois coal mining jobs," said Michael Murphy, chief of DCCA's Office of Coal Development.

"We are also optimistic that, despite the current economic downturn, several other large-scale coal plant projects are moving ahead under the 'Power to Compete' incentive program enacted in 2001," Murphy said.

Babcock Power Inc. (BPI) is a supplier of technology, equipment and services to the power generation industry. BPI designs, manufactures and services heat recovery steam generators through its Vogt Power International subsidiary located in Louisville, KY, condensers, feedwater heaters and moisture separator reheaters through its Thermal Engineering International (USA), Inc. subsidiary located in Los Angeles, CA, and provides steam generators, environmental solutions (SCRs, flue gas scrubbers, and mercury removal systems), and after market solutions to the electric utility and waste-to-energy industries through its environmental and services subsidiaries located in Worcester, MA.