SWEETWATER, Texas, June 18 /PRNewswire/ -- In a major step in development of the Tenaska Trailblazer Energy Center, Tenaska has selected Fluor Corporation (NYSE: FLR) as its engineering, procurement and construction (EPC) contractor for the next- generation advanced-technology power plant. Tenaska has signed a memorandum of understanding with Fluor that will be the basis of a joint Tenaska-Fluor limited engineering phase of work.

"Fluor is one of a select group of engineering and construction firms capable of designing, engineering and constructing a plant the scale of the proposed Trailblazer plant," said Tenaska Engineering and Operations President and CEO Michael Lebens.

"Fluor is known and respected for its expertise and experience in building power plants across the globe and has experience both in coal-fueled facilities and in advanced carbon capture technology," he said.

The proposed Tenaska Trailblazer Energy Center is expected to be the first conventional commercial coal-fueled power plant in the United States, and possibly worldwide, to produce electricity while designed to capture 85 to 90 percent of the carbon dioxide (CO2) emissions and providing for its use in enhanced oil recovery (EOR) and geologic storage. The plant's advanced air quality control system will also minimize release of other emissions.

"The selection of Fluor represents another milestone in Trailblazer's path toward becoming a revolutionary and state-of-the- art generator of needed electric energy in Texas," said Lebens.

This engineering phase, to last approximately 12 months, will produce the preliminary design and the cost to build the plant. The results will be a factor in Tenaska's final decision on whether to proceed with construction of the Trailblazer project. If Tenaska proceeds after this initial phase, Lebens said the company intends to sign a contract with Fluor for EPC services for the facility.

Fluor has delivered solid-fueled power plants ranging in unit size from 65 to 1,600 megawatts (MW) for decades. Trailblazer would produce approximately 600 MW of electricity, enough to supply power to approximately 600,000 homes. Fluor's experience covers all aspects of pulverized coal, including supercritical facilities like Trailblazer.

Although Tenaska's final decision on Trailblazer construction will likely be made in 2010, the plant is in an advanced stage of development. Tenaska has acquired all necessary property and signed tax abatement agreements with Nolan County and the Nolan County Hospital District.