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TAMPA ELECTRIC SIGNS LETTERS OF INTENT WITH COMPONENT SUPPLIERS FOR NEW IGCC POWER PLANT

 TAMPA ELECTRIC SIGNS LETTERS OF INTENT WITH
 COMPONENT SUPPLIERS FOR NEW IGCC POWER PLANT
 TAMPA, Fla., May 8 /PRNewswire/ -- Tampa Electric Company today announced it has finalized and signed letters of intent with the suppliers of two major components required for its planned 260 megawatt IGCC power plant. This first-of-a-kind facility will be installed at Tampa Electric's new power plant site in southwestern Polk County, Fla. as part of the previously announced U.S. Department of Energy's Clean Coal III project.
 Preliminary engineering already has begun on the project. Installation will occur in phases with the combustion turbine coming on line in July 1995, and the gasification/clean-up and combined cycle configuration coming on line in July 1996.
 A major thrust of this project will be to demonstrate a metal oxide hot gas clean-up system that removes sulfur at temperatures of about 1,000 degrees F. In the Process, overall cycle efficiency of the plant is increased by 10-12 percent.
 The DOE project will result in a two-year demonstration phase during which Tampa Electric will determine and report on the project's technical and financial feasibility based on a fuel mix of various eastern coals.
 The agreements announced today relate to two fundamental pieces of the DOE supported IGCC project.
 The first involves the intended purchase by Tampa Electric of an oxygen-blown entrained-flow gasification system that will process about 1,900 tons of coal per day into a low Btu coal gas. This system will be provided by Texaco Inc.'s Alternate Energy Group headquartered in White Plains, N.Y.
 It is patterned after Texaco's highly successful installation at Cool Water in California. Texaco Development Corporation (TDC), the corporation's patenting and licensing subsidiary, will oversee the gasification licensing agreement for the project.
 The second agreement relates to Tampa Electric's intended purchase of an advanced combustion turbine capable of operating with a low Btu coal gas fuel. This advanced combustion turbine will be provided by General Electric headquartered in Schenectady, N.Y. It will operate at a firing temperature of about 2,300 degrees F. It is similar to other recent successful installations of GE's 7,000 F CT/combined cycle. The project also will add utilization of low Btu coal gas in the combustion turbine.
 Today's letters of intent are another step in the process enabling Tampa Electric, with help from the DOE, to build a state-of-the-art IGCC power plant that will produce the nation's first commercial application of these advanced integrated technologies.
 Ultimately, it is expected that this power plant technology could become an important option for numerous utilities as they respond to requirements of the federal Clean Air Act Amendments of 1990 for the year 2000 and beyond.
 Partial funding for the project will be provided by the Department of Energy's Clean Coal Technology program (Round III). The program's objectives are to demonstrate clean, innovative, energy efficient technologies.
 Final and formal agreement with Texaco and General Electric for preliminary engineering of the gasification system and the advanced combustion turbine/combined cycle are expected to be completed within the next two to three months.
 Tampa Electric is a regulated public utility serving over 467,000 customers and the principal subsidiary of TECO Energy, Inc. (NYSE: TE) TECO Energy is a diversified energy-related holding company headquartered in Tampa. In addition to Tampa Electric, its principal companies include TECO Transport and Trade, TECO Coal, TECO Coalbed Methane and TECO Power Services.
 -0- 5/8/92
 /CONTACT: Mike Mahony of Tampa Electric, 813-228-4271 (office), or 813-961-9456 (home)
 (TE) CO: Tampa Electric Company ST: Florida IN: UTI SU:


JB-AH-AW -- FL006 -- 8167 05/08/92 14:52 EDT
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Publication:PR Newswire
Date:May 8, 1992
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