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GE and Bechtel Sign Second IGCC FEED Contract

Posted on August 18, 2006

GE Energy and Bechtel Power have signed their second agreement with American Electric Power (AEP) to move forward with plans for an integrated gasification combined-cycle (IGCC), or cleaner coal, power plant.

Under the agreement announced today, GE and Bechtel will proceed with the front-end engineering design (FEED) phase for a proposed, 630-megawatt IGCC plant in Mason County, West Virginia. Appalachian Power, an AEP subsidiary, would operate the plant, which would be located next to Appalachian’s existing Mountaineer power plant.

In September 2005, GE and Bechtel signed a FEED agreement with AEP, one of the nation’s largest electricity generators, for a proposed IGCC project in Meigs County, Ohio. If the two projects receive all of the necessary regulatory approvals, they would be among the first IGCC plants to be built in the United States in the past ten years and the first of this scale.

The FEED process for the West Virginia project is expected to conclude in mid-December 2006. Procurement and construction could start after certain regulatory milestones are achieved.

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