We Energies Spending $3 Billion to Increase Power Generation and Reduce Emissions in Wisconsin

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Researched by Industrial Info Resources (Sugar Land, Texas)--We Energies, a subsidiary of Wisconsin Energy Corporation (NYSE:WEC) (Milwaukee, Wisconsin), is in the process of building a new coal-fired generation, which is scheduled to produce 1,230 megawatts (MW) at the Elm Road Station, which is located next to the 1,135-MW coal-fired Oak Creek Power Station in Oak Creek, Wisconsin. The new plant is 70% complete and is being built at a cost of about $2.15 billion.

The plant is being built by Bechtel Power Corporation (Frederick, Maryland), a division of Bechtel Group Incorporated (San Francisco, California). Hitachi America Limited (Purchase, New York), a division of Hitachi Limited (NYSE:HIT) (Chiyoda, Tokyo), is supplying the steam turbines and the pulverized coal supercritical boiler islands. The new boilers will each have selective catalytic reduction (SCR) to reduce nitrogen oxide (NOx) emissions, wet electrostatic precipitators and a baghouse to reduce particulate matter, as well as wet flue gas desulfurization (FGD) to reduce sulfur dioxide (SO2) emissions. The FGD byproducts will be used to produce synthetic gypsum. Construction began in June 2005, and Elm Road 01 is expected to be complete in the fourth quarter of 2009, with Elm Road 02 to follow in 2010.

We Energies also has chosen Washington Group International (Boise, Idaho), a division of URS Corporation (NYSE:URS) (San Francisco), as the engineering, procurement and construction contractor for a $750 million environmental upgrade at the Oak Creek Station. The actual cost will be about $830 million because of the $80 million accumulated funds used during construction utilized during construction. Oak Creek units 05, 06, 07 and 08 will have FGDs and SCRs installed, reducing SO2 emissions by 80%-90% and NOx by 60%-70%. Civil construction began in July 2008, and the SCRs and the FGDs are expected to be complete and tied in to all four units by the end of 2012.

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