GE Energy and Bechtel Overseas Power Corp. have signed a project development agreement with TransCanada Corporation of Calgary to develop the first polygeneration facility in Canada with the ability to use petroleum coke and incorporate carbon capture and storage.

The proposed polygeneration facility, located in Belle Plaine, Saskatchewan, Canada, is expected to use petroleum coke as feedstock to produce hydrogen, nitrogen, steam and carbon dioxide for fertilizer production and enhanced oil recovery (EOR), and to generate approximately 300 megawatts of long-term electricity.

The facility would use GE Energy’s gasification and flexible-fuel technology to generate power and support local industrial processes. GE’s scope of supply is the gasification island and the power island equipment, which includes two GE Frame 7FB gas turbines designed to run on syngas with a high hydrogen content.

Under the agreement with TransCanada, GE and Bechtel Overseas Power Corporation of Houston, Texas, have completed the first preliminary engineering step and will be advancing into the next engineering step in early 2008. If this work indicates that the project is economically viable, the detailed engineering design (FEED) phase will follow. If the project receives final approvals for construction, the facility would have an in-service date targeted for 2013.

“GE’s gasification technology has the capability to capture carbon for use in processes such as EOR, which will help Saskatchewan meet its greenhouse gas targets,” said John Lavelle, General Manager of GE Energy’s gasification business. “The project plans to sequester over five million metric tons of carbon dioxide annually to increase local oil production, resulting in a drastic decrease of carbon emissions. In addition, gasification allows the project owners to use a byproduct of the refining industry for fuel, instead of natural gas.”

“Bechtel is pleased to work with GE and TransCanada to develop and construct this pioneering and innovative project,” said Amos Avidan, Senior Vice President and Manager of Gasification Operations for Bechtel. “We see a growing interest in polygeneration projects that will convert coal and petroleum coke to a variety of useful products, including hydrogen, chemicals and fuels, while capturing CO2 for use in enhanced oil recovery and other applications.”

ABOUT GE ENERGY

GE Energy (www.ge.com/energy) is one of the world’s leading suppliers of power generation and energy delivery technologies, with 2006 revenue of $19 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE’s corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.

ABOUT BECHTEL

Bechtel (www.bechtel.com) is a global engineering, construction, and project management company with 40,000 employees worldwide and revenues of $20.5 billion in 2006. Since its first gasification project in 1948, Bechtel has been a leader in the design, construction, and startup of projects to convert coal and petroleum coke to electricity and chemicals.