Air Pollution Control Equipment Services, Emissions

BP/Cinergy break ground on new cogeneration facility in Texas

HOUSTON & CINCINNATI, Sept. 27, 2001 — BP and Cinergy Solutions broke ground today on new power and steam cogeneration facilities at BP’s Texas City, Texas, refinery and chemical complex.

The companies have joined together to construct a plant capable of producing an additional 570 megawatts of electricity and 2,700,000 lbs./hr. of medium pressure steam for the Texas City complex. These new facilities will allow BP to shut down older, less efficient power units and help reduce nitrogen oxide emissions from the site by 53 percent.

BP Global Power, the power development unit of BP, is a 50/50 partner in the project with Cinergy Solutions, an affiliate of Ohio-based Cinergy Corp., one of the nation’s diversified energy companies. South Houston Green Power LP, an affiliate company created by the 50/50 partnership, will own the new facility.

“Leadership in environmental progress is a cornerstone of the BP brand,” said Tim Scruggs, Vice President of the Texas City business unit. “This is a further demonstration of our commitment to improving air quality in Texas. It gives the public, TNRCC and our colleagues a clear idea of how we plan to reach the aggressive emission targets set for industrial facilities in our area. We also believe the project helps create business opportunities for us and for others as well. With our partner, Cinergy, we are committed to lead the field in reducing emissions.”

“This project demonstrates you can have both — more energy and a cleaner environment. The new facility will provide efficient, economical and environmentally beneficial energy to BP,” said Steve Harkness, Cinergy Solutions’ president and chief operating officer. “We’re very pleased that BP selected us to partner with them on this project where we can demonstrate our ability to balance environmentalism with economics and reliability.”

Cinergy Solutions is already operating the existing steam and power utilities at the Texas City site, which includes 6 cogeneration trains and 4 boilers capable of producing 250MW of electrical capacity and 2,475,000 lbs./hr. of steam. The new plant will be on the north side of BP’s Texas City complex, and, in addition to natural gas, will also burn the complex fuel gas produced as a by-product from BP’s process units. Construction is expected to be complete in spring-2004.

BP is a natural gas producer, and energy and electricity marketer in North America. Worldwide it is the second largest non-state producer of natural gas, the cleanest burning fossil fuel, with reserves of more than forty trillion cubic feet.

Cinergy Solutions’ focus is cogeneration, energy services and utility outsourcing for large industrials, municipalities and other larger energy consumers. The company specializes in reducing energy costs, lowering emissions and conserving energy and improving efficiency for its customers, some of which include Kodak, Millennium Chemicals, General Motors and the City of Orlando. Cinergy Solutions currently has projects in operation or under construction in 11 states.

The Texas City refinery is the largest in the BP system and one of the largest in the US, processing 450,000 barrels of crude per day. The refinery produces gasoline, distillates and chemical feedstocks. The Texas City chemicals plant is a world-class producer of metaxylene, paraxylene, and styrene as chemical intermediates that are further processed at other facilities.