Calpine Installs PSM's Low Emissions Combustion System at Its Texas City Cogeneration Power Plant

SAN JOSE, Calif., Sept. 7 /PRNewswire-FirstCall/ -- Calpine Corporation's parts and manufacturing subsidiary Power Systems Mfg., LLC (PSM) successfully converted one of three planned combustion turbine generators at Calpine's Texas City Cogeneration Power Plant to PSM's patented, low-emissions combustion system, LEC-III(R). As a result, Calpine will reduce nitrogen oxide (NOx) emissions at its Texas City power plant by approximately 80% while simultaneously maintaining very low, single-digit carbon monoxide emission levels -- without disrupting its steam host's operations or sacrificing the plant's fuel-efficiency. The installation of PSM's LEC-III(R) system on all three turbines is expected to save Calpine approximately $36 million, when compared to the capital cost of replacing heat recovery boilers, adding alternative selective catalytic emission reduction technology and purchasing costly emission credits. Calpine expects to complete the installation on the two remaining gas turbines in 2006.

"The PSM LEC-III(R) system has consistently met or exceeded our expectations," said Tom Mason, Calpine executive vice president and president of Calpine Power Company. "This technology extends the economic life of Calpine's existing power generation, dramatically reduces NOx emissions and reduces operating costs."

Texas City is a 457-megawatt, natural gas-fired, cogeneration power plant, owned and operated by Calpine. The plant, which entered operations in May 1987, produces steam for an adjacent chemical processing facility and generates electricity for the Texas power market. The retrofit involved the installation of PSM's LEC-III(R) system in a 501D5 combustion turbine generator designed by Siemens Westinghouse and manufactured by Mitsubishi. PSM's proprietary low emissions combustion systems and state-of-the-art hot gas path components continue to help Calpine lower power plant emissions, improve fuel efficiency and enhance reliability.

Tom Churbuck, president of PSM, stated, "The Texas City project strengthens PSM's record of success in providing customers with the industry's lowest guaranteed NOx combustion system available for D- and E-class gas turbines, including the GE frame 6, 7 and 9 engines and now the Siemens Westinghouse and Mitsubishi 501D5."

PSM's proprietary dry low NOx combustion system achieves NOx emissions of less than five parts per million without the use of the more costly selective catalytic reduction technology. The combustion system is in use in more than a dozen General Electric-manufactured gas turbines for customers in the United States, Europe and the Middle East. Calpine's Texas City installation represents the first conversion of a Siemens turbine.

About Power Systems Mfg., LLC

Power Systems Mfg., LLC, a wholly owned subsidiary of Calpine Corporation, is an industry leader in gas turbine component engineering design and production. The Jupiter, Fla.-based company offers a wide range of low emissions combustion systems and advanced airfoils compatible with retrofitting or replacing existing combustion systems and hot gas path components in General Electric and Siemens Westinghouse turbines, including F-class machines. Visit PSM's web site at http://www.powermfg.com/.

About Calpine

A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and three Canadian provinces. Its customized products and services include wholesale and retail electricity, natural gas, gas turbine components and services, energy management, and a wide range of power plant engineering, construction and operations services. Calpine was founded in 1984. It is included in the S&P 500 Index and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit http://www.calpine.com/.