RICHMOND COUNTY, GA, Jan. 17, 2001 SkyGen Energy LLC, a wholly owned subsidiary of Calpine Corporation [NYSE:CPN], the nation�s leading independent power company, today announced plans to build, own and operate an 800-megawatt natural gas-fired cogeneration facility in Augusta, Ga.
The proposed Augusta Energy Center will be fueled by clean natural gas and will supply energy to DSM Chemicals North America, Inc. for use in its production processes. Electric power generated at the facility will be sold on the wholesale electricity market.
DSM Chemicals currently self-generates substantial amounts of thermal energy through existing on-site boilers. Under a long-term Energy Services Agreement, the Augusta Energy Center will substitute that process with technologically advanced combustion gas turbines.
DSM will keep its existing boiler equipment for secondary needs and backup thermal energy supply, and will supply condensate and makeup water to the Energy Center. As proposed, the production systems of the facility � three General Electric Frame 7F gas turbines and a single steam turbine � will be designed and sized to operate independently and meet a substantial portion of DSM�s energy needs.
The advantage of the proposed facility is the use of cogeneration technology where one fuel is used to produce two forms of useful energy � electricity and steam for use in DSM�s manufacturing plant. This combined process is much more fuel-efficient than either stand-alone process.
Moreover, the project will produce this energy in an environmentally responsible manner. The system�s state-of-the-art design and advanced emissions control systems effectively reduce emissions compared to older plants.
�We are very excited to have DSM as a long-term customer,� said Michael Polsky, SkyGen�s President. �Today�s business climate demands that companies focus on their core competencies. By outsourcing its energy needs, DSM can improve its competitive position.�
The Augusta Energy Center will be located adjacent to the DSM manufacturing facility on land leased from DSM. Approximately 25 acres will be utilized for placement and operation of the cogeneration project.
Calpine will manage engineering and design, construction, and operations of the project as it moves past the development stage. The construction of the cogeneration facility is expected to begin in the second quarter of 2001.
�The Augusta Energy Center will be one of the most efficient power plants built in Georgia. It will provide important energy cost savings for DSM while safeguarding the environment. During normal operations, air emissions from the Augusta site will be reduced as a result of this facility,� stated Bill Price, DSM President.
DSM of the Netherlands, the parent of DSM Chemicals in Augusta, is a highly integrated international group of companies that is active worldwide in the field of chemicals, biotechnological products, and plastic materials. The group is headquartered in Heerlen, The Netherlands, with annual sales in excess of $7 billion and employs about 23,000 people at more than 200 sites in Europe, North and South America, Asia, Africa, and Australia.
DSM Chemicals is a business unit of the DSM Fiber Intermediates Business Group. In 1964, Nipro, Inc. (the predecessor of today’s DSM) was organized to manufacture caprolactam, a monomer of nylon used in nylon fiber production. Subsequent expansions in 1972 and 1976 made DSM the largest independent supplier of caprolactam in the U.S. In 1999, Nylon 6 production began at the site. In the fall of 1999, a carpet recycling facility began recovering the original pure caprolactam from waste carpet and nylon scrap.
The DSM plant facilities and sales office in Augusta mean jobs for approximately 400 company employees and 250 contract employees. In terms of dollars, DSM means annual sales in excess of $250 million and an annual payroll of over $24 million. For further information on DSM Chemicals please visit our web site www.dsmna.com.
Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient combined-cycle, natural gas-fired generation and renewable geothermal energy. Calpine has launched the largest power development program in the United States.
To date, the company has approximately 28,100 megawatts of base load capacity and 5,400 megawatts of peaking capacity in operation, under construction and in announced development in 27 states and Alberta, Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its website at www.calpine.com