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COUNCIL BLUFFS, Iowa, Sept. 12, 2003 -- MidAmerican Energy Company broke ground Tuesday on a $1.2 billion electric generation project in the U.S. which will incorporate "advanced supercritical" technology.
The coal-fueled plant will be built in Iowa's Midlands area.
Construction, expected to be complete in summer 2007, will create more than 1,000 jobs at a payroll of more than $300 million.
(See accompanying fact sheets for more specific details at http://www.midamericanenergy.com/pdf/cbec4presskit.pdf)
Supercritical boilers create steam at higher temperatures and pressures than traditional plants, converting coal to electricity more efficiently and significantly reducing emissions.
Consistent with MidAmerican's environmental commitment, the plant will incorporate additional advanced technologies for clean-coal conversion, including "dry scrubbers" and selective catalytic reduction.
The plant will be the fourth generating facility at the Council Bluffs Energy Center, adding capacity of 790 megawatts - enough to supply 650,000 homes - to the existing 820-MW capacity at the complex.
Greg Abel, president of MidAmerican Energy Holdings Company, said, "MidAmerican could not have undertaken this project without the leadership of Iowa Governor Tom Vilsack. By investing and planning now, this plant will go a long way toward meeting our common goal of energy stability and independence for Iowa's future."
"Gov. Vilsack, the Iowa Legislature and the state's regulatory agencies have established an energy strategy for the state that focuses on the reliability and diversity of our energy supply, price stability over the long-term, and environmental responsibility," he said.
Abel added, "We also are pleased to be able to contribute, through this project, to the energy security of our friends in Nebraska." Utilities in Nebraska have contracted to purchase 150 megawatts of the new plant's capacity.
MidAmerican is the developer and operator of the project. Other partners involved in ownership are Central Iowa Power Cooperative, Corn Belt Power Cooperative, Lincoln Electric System, Municipal Energy Agency of Nebraska and the Iowa cities of Alta, Cedar Falls, Eldridge, Montezuma, New Hampton, Pella, Spencer, Sumner, Waverly and West Bend. Combined, these utilities provide electricity to more than 1 million customers.
Iowa Gov. Tom Vilsack said the new plant is good news for both the Midlands region and the state of Iowa. "We are very fortunate that, during a time of turmoil in the energy industry, MidAmerican Energy is enhancing the energy security of Iowans by increasing the ability to generate electricity here at home. A reliable supply of electricity, at stable prices, is essential to our state's economic development."
Council Bluffs Mayor Tom Hanafan said, "This project by itself is making a major contribution to jobs and economic development in the Midlands area, and by enhancing our region's energy security, it will help attract new businesses."
When the plant goes online, it will add approximately 70 full-time employees to the 146 now working at the Council Bluffs Energy Center, increasing the annual payroll by $4.8 million. The plant will generate a total of $3.4 million in annual property tax payments, of which $1.724 million will be distributed to Pottawattamie County, the city of Council Bluffs, the Lewis Central School District and other local government bodies.
U.S. Sen. Chuck Grassley (R-Iowa) noted, "As Congress is on the eve of approving major energy legislation, Iowa continues to remain in the forefront of developing its energy infrastructure. I'm pleased that Iowa is expanding and diversifying its energy resources, and doing it an environmentally responsible manner."
MidAmerican's Abel added, "It is important to Iowans to achieve energy independence by developing energy resources within the state. MidAmerican took up Gov. Vilsack's challenge and announced its plan to add new and diverse sources of electricity generation in the state, while proposing to keep its Iowa electric rates stable through 2010. Our expansion here is just one part of that commitment."
In addition to the new Council Bluffs project, MidAmerican is finalizing plans to build 310 megawatts of wind energy generation in Iowa. That project will become one of the world's largest land-based wind facilities.
Last May, the company completed Phase 1 startup of the Greater Des Moines Energy Center, a 350-megawatt, natural gas generating station. Phase 2, which will add another 190 megawatts to the plant's output, is expected to be complete in December 2004.
MidAmerican also expects to invest up to an additional $300 million on environmental improvements to existing coal-fueled generating plants during the next seven years as part of the company's emissions reduction plan filed with the Iowa Utilities Board.
"The environmentally responsible use of coal is a vital part of our energy portfolio because it is indigenous, plentiful and low-cost," Abel said. MidAmerican has entered into a long-term contract with Union Pacific Railroad to transport coal to the new plant from the Powder River Basin in Wyoming.
Mitsui & Company is responsible for managing the Council Bluffs construction project, while Hitachi Ltd. is providing boilers, power turbines and other critical technology expertise. Both companies are based in Japan, a leader in the development of supercritical technology. The engineering firm of Sargent & Lundy, Chicago, is the design engineer. Kvaerner Songer from Washington, Pa., serves as the general work contractor.
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