BP/Cinergy Partner to Improve Houston Air Quality.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--Feb. 13, 2004

A major Houston-area industrial complex is close to cutting its nitrogen oxide emissions in half and helping improve air quality.

BP and Cinergy Solutions Inc. dedicated new power and steam cogeneration facilities at BP's Texas City complex today. The new facilities will allow BP to shut down older, less efficient power plants and help reduce nitrogen oxide emissions from the site by 50 percent. The companies constructed a plant capable of producing an additional 570 megawatts of electricity and 2,700,000 lbs./hr. of medium pressure steam for the Texas City facility.

BP Global Power, the power development unit of BP, is a 50/50 partner in the project with Cinergy Solutions, an affiliate of Ohio-based Cinergy Corp. (NYSE:CIN), one of the nation's leading diversified energy companies. South Houston Green Power LP, an affiliate company created by the 50/50 partnership, owns the new facility.

"Leadership in environmental progress is a cornerstone of the BP brand," said Don Parus, director of BP's South Houston Site. "The completion of this project is a further demonstration of our commitment to improving air quality in Texas. It gives the public, TCEQ and our colleagues a clear idea of how we are reaching the aggressive emission targets set for industrial facilities in our area. We also believe the project helps create business opportunities for us and for others as well. With our partner, Cinergy, we are committed to lead the field in reducing emissions."

"We completed this project early, which is good news for BP, Cinergy, and Houston air quality," said Steve Harkness, president of the Energy Services Group of Cinergy's Commercial Business Unit. "This project is an example of more energy produced with fewer emissions and less cost. The cogeneration facility uses the latest technologies to reduce nitrogen oxide emissions at the site, lower fuel costs, and increase the reliability of its operations."

Cinergy Solutions initially took over and operated the existing steam and power utilities at the Texas City site, which included six cogeneration trains and four boilers capable of producing 250MW of electrical capacity and 2,475,000 lbs./hr. of steam. Cinergy has returned three units to BP for retirement. An additional four units will be returned and retired. Two existing cogeneration trains will be retained and the complex will be capable of producing a total of approximately 770 megawatts.

The new plant is on the north side of BP's Texas City complex, and, in addition to natural gas, also burns the complex fuel gas produced as a by-product from BP's process units. The environmentally friendly electric power will be partially used at the site and the rest exported to the power grid.

BP is a global energy and petro chemical company operating in more than 100 countries. BP is also a leading natural gas producer and energy and electricity marketer in North America. Worldwide it is the second largest non-state producer of natural gas, the cleanest burning fossil fuel, with reserves of more than 40 trillion cubic feet.

Cinergy Solutions' focus is cogeneration, energy services and utility outsourcing for large industrials, municipalities and other larger energy consumers. The company specializes in reducing energy costs, lowering emissions and conserving energy and improving efficiency for its customers, some of which include Kodak, Procter & Gamble, General Motors and the city of Orlando. Cinergy Solutions currently has 19 projects in operation or under construction in 20 states.

The BP Texas City site includes both a refinery and a chemical plant. The refinery is the largest in the BP system and one of the largest in the US, processing 450,000 barrels of crude per day. The refinery produces gasoline, distillates and chemical feedstocks. The chemicals plant is a world-class producer of metaxylene, paraxylene, and styrene as chemical intermediates that are further processed at other facilities.