Siemens signs agreement for first U.S. gasifier order from Secure Energy

This is the first gasifier order for Siemens in the U.S. The Decatur plant will convert high-sulfur Illinois coal into pipeline quality natural gas, which will be supplied to the interstate natural gas pipeline network. The plant is scheduled to be completed in 2009 and has the design capacity to produce 20 billion cubic feet of synthetic natural gas per year.

The Siemens scope of supply for the Decatur plant consists of process design and basic engineering design packages for the gasification island, two Siemens fuel gasifiers and other key gasification island components, and a license to use the Siemens fuel gasification process. The gasifiers will be delivered in early 2009 with commissioning expected in mid 2009.

„Siemens continues to invest in creating a diverse portfolio of environmentally compatible products and solutions aimed at helping our customers meet their market requirements. This order is further evidence of the market potential for fuel gasification and the important role it can play in meeting our nation's energy requirements,“ said Randy Zwirn, president and CEO of Siemens Power Generation, Inc. and member of the PG Group Executive Committee. PG acquired Sustec's fuel gasification business in mid 2006 to extend its power plant business to products and services related to fuel gasification.

As an affordable, reliable and widely available fuel, coal is destined to play an important role in meeting the world's future energy needs. It is estimated that the United States has about 27 percent of the world's potentially minable coal reserves, the largest of any nation. Coal already represents more than 50 percent of the total power generation in the U.S., and 40 percent globally, and it will continue to be an important source for the foreseeable future. Thus, using coal cleanly is a top priority.

The technology employed at the Decatur plant will help ensure the security of gas supply in the U.S. while utilizing national coal reserves in an environmentally benign way. For example, sulphurdioxide emissions will be reduced compared to conventional technologies.

„Secure Energy is pleased and excited to incorporate Siemens gasification technology in our plant,“ said Lars Scott, President and Co-Founder of Secure Energy. „We believe the Siemens process is the superior product available in the marketplace, and we are looking forward to working with Siemens' engineering team in making the Decatur project the model for coal gasification plants worldwide.“

The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector. In fiscal 2006 (which ended September 30), Siemens PG posted sales amounting to more than EUR10 billion and received new orders totaling EUR12.5 billion, according to U.S. GAAP Group profit amounted to EUR782 million. On September 30, 2006, PG had a work force of approximately 36,400 worldwide.

Siemens AG
Corporate Communcations
Press Office Power Generation
Alfons Benzinger
Tel. 49 9131/18-7034
Fax: 49 9131/18-7039
mailto:alfons.benzinger@siemens.com
Reference Number: PG 200708.063 e