Fluor Awarded Full Notice to Proceed for TXU's Oak Grove Project

Fluor Corporation has received a full notice to proceed from a subsidiary of TXU Corp., Oak Grove Management Company LLC, to complete engineering, procurement, construction and commissioning (EPC) services for the estimated $1.8 billion Oak Grove power plant project.

As announced in June 2006, Fluor began engineering and procurement services from its Greenville, South Carolina, project execution office awaiting approval of the air permit from the Texas Commission on Environmental Quality (TCEQ), which was received on June 13, 2007. The company booked approximately $80 million for this work in the second quarter of 2006. Fluor's remaining portion of this fixed-price contract award will be booked in the second quarter of 2007.

"Fluor looks forward to completing a world-class facility at Oak Grove that will help TXU provide a new, reliable energy source to its customers with state-of-the-art emissions controls," said David Constable, president of Fluor's Power Group.

"TXU has partnered with Fluor on many projects over the years because of its expertise, reliability and project management skills. Working together on this project, we will drive industry-leading quality and efficiency in the development of Oak Grove in order to help meet Texas' near-term energy needs," said Chuck Enze, CEO of TXU Generation Construction.

The Oak Grove project, a nominal 1,600 MW super-critical lignite power plant, which will include best available control technology to minimize emissions, will be located in Robertson County, Texas. The new plant will have among the lowest sulfur dioxide, nitrogen oxide and mercury emissions in the nation and will be 75 percent cleaner than the average U.S. coal plant.

Oak Grove will be constructed at the site of a previously planned power plant that has significant infrastructure already in place. Both Unit 1 and Unit 2 at Oak Grove are expected to be substantially complete and generating electricity in late 2009 and mid-2010 respectively. This will help address Texas' projected need for new power supplies. Upon completion, Oak Grove will generate enough power to serve approximately one million homes.

Fluor estimates that the Oak Grove project will create approximately 2,400 construction jobs at its peak. Fluor is soliciting qualified project workers from throughout central Texas, in particular working with state and local government representatives and community and technical colleges.

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Posted 27/06/07

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