Fluor 2004 Annual Report Download - page 21

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FLUOR CORPORATION 2004 ANNUAL REPORT
While overcapacity still exists in
many parts of the U.S., there are certain
regions of the country that need
to add new generating capacity to meet current or expected future
demand. The high cost of natural gas has caused prospective owners
to evaluate other fuels for future generation needs. As a result, there
is renewed interest in base load coal-fired facilities, despite their sig-
nificantly larger capital cost and longer project execution schedules.
While it is too early to suggest a new cycle of investment has
begun, Fluor is selectively pursuing a number of coal-fired prospects
that could move forward into full project awards during 2005. Of
note, the company is currently working on the preliminary design
engineering for the Prairie State project, a 1500-megawatt coal-fired
generating plant in Illinois for Peabody Energy Company. Fluor
expects to negotiate a contract for full engineering, procurement,
construction and commissioning of this $2 billion project in 2005.
Fluor was also selected in late 2004 by Nevada Power to
complete construction of a partially built 1200-megawatt, natural
gas-fired, combined-cycle power facility in Moapa Valley, northeast
of Las Vegas. Fluor had been the original contractor on the facility
for the previous owner, who elected in March 2003 to defer comple-
tion of the project.
In addition to projects for new generating capacity, the
company is also focused on “plant betterment” opportunities related
to environmental cleanup of existing facilities. These projects
include the addition of selective catalytic reduction units and flue
gas desulphurization units to reduce SOx, and NOx emissions in
older coal-fired facilities. Additionally, Fluor is teamed with
Powerspan, the developer of a new multi-pollutant reduction tech-
nology that is in commercial demonstration. This technology is
designed to reduce not only SOx and NOx, but also fine particulate
and mercury.
Fluor Constructors International
Fluor Constructors International, Inc.SM (FCII) is the union craft
arm of Fluor Corporation, providing construction management and
direct-hire construction expertise in support of Fluor’s operating
businesses in North America. Additionally, FCII supports the staffing
of international construction projects and has employees working
around the world.
FCII has executed projects in virtually every business sector,
performing stand-alone construction and providing maintenance
services to clients in the United States and Canada. The company
has served a diverse range of government agencies as well. FCII is
one of only a few construction and maintenance contractors to be
ISO-9002 certified.
Fluor is committed to remaining a
leader in the power market on a stand-
alone basis following the dissolution
of its joint venture with Duke Energy
in 2003. Fluor’s first power project to
be won and solely executed by the
company is the 620-MW Jack County
Generation Facility near Jacksboro,
Texas, for Brazos Electric Power
Cooperative. This turnkey project
for a natural gas-fired, combined-cycle
power plant will provide low-cost,
reliable electricity beginning in the
spring of 2006.
The partnership of Duke/Fluor Daniel
and Alstrom Power provided turnkey
EPC and commissioning services for
Reliant Energy’s 521-MW Seward
Power Plant in Pennsylvania, opera-
tional during 2004. This state-of-
the-art clean coal technology facility
was named 2004 Plant of the Year by
POWER magazine, and is the largest
waste coal-fired generating plant in
the world.