Siemens to Supply Technology for New IGCC Project in the U.S.


Siemens Energy has been awarded a Front End Engineering Design (FEED) contract by Summit Texas Clean Energy LLC to provide coal gasification and power block technology for the Texas Clean Energy Project (TCEP). The new polygeneration IGCC project will use coal as its feedstock. With a gross capacity of 400 megawatt (MWe), the plant will also produce urea for the U.S. fertilizer market. With a carbon capture rate of 90 percent, the plant will have one of the highest carbon capture rates of any IGCC plant in the world. The CO2 will be used for enhanced oil recovery in the West Texas area. Siemens will be working with Fluor Corporation and Linde during the project's FEED. This project received a USD 350 million award under the U.S. Department of Energy's Clean Coal Power Initiative (CCPI) - Round 3 to demonstrate the commercial integration of large-scale IGCC with CO2 capture and geologic storage.

The Texas Clean Energy Project will be located in Penwell, near Odessa, Texas. Siemens will deliver the gasification island technology, which will include two SFG-500 gasifiers. The power block will be based on an SGT6-5000F gas turbine modified to operate on high H2 syngas, which will allow the plant to have a very high carbon capture rate of about three million tons/year. The power block will also include a Siemens SST-900RH steam turbine, air-cooled generators and SPPA-T3000 controls.

"Summit and Siemens have a long and successful working relationship that provides a strong foundation for this world-class IGCC project. We greatly value Summit's confidence in the Siemens power generation and gasification technologies as the best choice for its IGCC project," said Michael Suess, CEO of the Fossil Power Generation Division of Siemens Energy. "We have made great innovations and investments in clean coal technology over the past few years, and we are excited to now be on the forefront of today's deployment of clean coal technology."

"We are pleased to be moving forward with Siemens on this breakthrough fossil energy project," said Donald Hodel, Chairman of Summit Power Group and former U.S. Secretary of Energy. "Our nearly 20-year working relationship with Siemens has enabled us together to find a way to use the world's vast coal reserves in the cleanest manner possible, providing future generations with a higher degree of energy security in an environmentally sound fashion. We both look forward to working with the U.S. Department of Energy and our other technology partners to accomplish these important goals."

IGCC technology is part of Siemens' Environmental Portfolio. In fiscal 2009, revenue from the Portfolio totaled about EUR23 billion, making Siemens the world's largest supplier of ecofriendly technologies. In the same period, the company's products and solutions enabled customers to reduce their CO2 emissions by 210 million tons. This amount equals the combined annual CO2 emissions of New York, Tokyo, London and Berlin.

The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the Energy Sector had a work force of more than 85,100. Further information is available at: http://www.siemens.com/energy

Siemens AG
Corporate Communications and Government Affairs
Wittelsbacherplatz 2, 80333 Munich
Germany

Media Relations: Gerda Gottschick
Phone: +49 9131 18-85753
E-mail: gerda.gottschick@siemens.com
Siemens AG
Energy Sector - Fossil Power Generation Division
Freyeslebenstr. 1, 91058 Erlangen, Germany

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