Calpine to develop 800 MW power plant at Bayer in Texas

Calpine Corporation announced that it has agreed to build, own and operate an 800-MW natural gas-fired cogeneration power plant at Bayer Corporation's chemical facility in Baytown, Texas.
The proposed Baytown Power Plant will generate approximately 700 MW of electricity under baseload conditions, and will have the ability to produce an additional 100 MW of "peaking" power during hot summer months, when the demand for electricity in Texas reaches record-highs. Permitting for the $ 335 mm facility is underway, with construction scheduled for early 2000. The plant is expected to begin commercial operation in late 2001.
The Baytown plant will supply Bayer with all of its electric and steam requirements for 20 years. Sales to Bayer will generate approximately 50 % of the plant's annual revenue. Excess power will be sold into the ERCOT wholesale power market under a variety of short-, mid-, and long-term contracts.
"We are very excited to have a world-class corporation like Bayer as a long-term customer." said Diana Naylor, Calpine's senior vice president. "Today's dynamic, global marketplace demands innovation. We appreciate Bayer's confidence in Calpine to provide a competitive, reliable source of energy to meet their complex power needs." Clean, Efficient, State-of-the-Art Technology Calpine will develop the Baytown Power Plant utilising its Calpine Construct approach.
This is a unique construction management program whereby Calpine oversees every phase of project development -- including the design, engineering, procurement and construction of the plant -- to ensure quality and cost control, while providing maximum design flexibility. Siemens Westinghouse Power Corporation of Orlando, Fla. will supply three state-of-the-art 501F combustion turbines. Construction is scheduled to begin in early 2000.
"The Baytown plant will be one of the most efficient power plants to be built in Texas. It will help lower energy costs for customers, while safeguarding the environment," stated Naylor. "Compared to the average older gas-fired power plant in operation today, Baytown will use up to 40 % less natural gas. And by utilising the latest generation in combined-cycle combustion turbine design and advanced emissions control systems, we can significantly reduce emissions compared to older plants."

Calpine is the largest independent power producer in Texas, with more than 1,100 MW of capacity in operation and 2,600 MW of capacity in construction or under development. The Baytown plant will be the newest addition to Calpine's central region power system. This "system" approach, which Calpine pioneered, allows it to power its customers from a portfolio of highly efficient energy sources.

Calpine Corporation is a leading independent power company dedicated to providing customers with reliable and competitively priced electricity and thermal energy. Calpine serves energy customers in 14 states, with headquarters in San Jose, Calif. and regional offices in Houston, Texas; Pleasanton, Calif.; and Boston, Mass.
Calpine currently has approximately 9,800 MW of capacity in operation, pending acquisition, under construction or in announced development -- enough energy to power nearly 10 mm households. The company was founded in 1984.