AIR PRODUCTS SELLS PARTIAL EQUITY INTEREST IN COGENERATION FACILITY UNDER CONSTRUCTION IN ORANGE COUNTY, FLA.
AIR PRODUCTS SELLS PARTIAL EQUITY INTEREST IN COGENERATION FACILITY UNDER CONSTRUCTION IN ORANGE COUNTY, FLA. ALLENTOWN, Pa., Oct. 8 /PRNewswire/ -- Air Products and Chemicals, Inc. (NYSE: APD) announced today it has sold a one-half interest in a 120-megawatt cogeneration project under construction in Orange County, Fla., to wholly owned subsidiaries of UtilCo Group Inc. The equity sale will result in a $6.5 million after-tax gain, or $.06 per share, in the company's fourth quarter which ended Sept. 30. When completed in the fall of 1993, the natural gas-fired cogeneration facility will generate electricity for delivery to Florida Power Corporation and the Reedy Creek Improvement District under long- term contracts. The plant also will produce process steam which will be used by an existing Air Products air separation plant to lower energy consumption and increase production efficiency. The air separation facility is located adjacent to the cogeneration facility site near Orlando. Air Products' cogeneration business is part of the company's environmental and energy systems portfolio which also includes waste-to- energy and flue gas desulfurization facilities which the company or its partnerships own and operate to serve municipalities, utilities and industrial customers. In these three areas, Air Products and its partners have invested over $1.3 billion in seven projects that are completed or under construction. The sale of equity interests in selected projects is characteristic of Air Products' approach to these businesses. This approach provides the company with additional sources of financing and a capital structure which results in accelerated cash flows. Air Products also realizes cash flow as long-term operator of some of these facilities in addition to that resulting from its ongoing ownership interest. UtilCo Group is a wholly owned subsidiary of UtiliCorp United Inc., an electric and gas utility headquartered in Kansas City, Missouri. With annual revenues of approximately $1 billion, UtiliCorp serves nearly one million customers in eight states and one Canadian province. UtilCo Group is a 50 percent partner with Air Products in Stockton CoGen Company. Stockton CoGen's $100 million, 49-megawatt coal-fired facility in Stockton, California -- commissioned in l988 -- was built and is operated by Air Products. In addition, UtilCo Group currently owns interests in 14 other cogeneration or small power production projects located in five states, 13 of which are in operation. Air Products and Chemicals, Inc. is a major international supplier of industrial gases and related equipment, intermediate and specialty chemicals, and environmental and energy systems. The company has annual sales of $3 billion, operations in 29 countries and 14,600 employees. Corporate headquarters are near Allentown. /delval/ -0- 10/8/92 /CONTACT: Kevin J. Ramundo of Air Products and Chemicals, 215-481-4346/ (APD) CO: Air Products and Chemicals, Inc.; UtilCo Group Inc. ST: Pennsylvania, Florida IN: CHM SU:
CC -- PH031 -- 7917 10/08/92 13:44 EDT
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|Date:||Oct 8, 1992|
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