Fluor 2008 Annual Report Download - page 26

Fluor Corporation 2008 Annual Report
Power
Generation for Today and Tomorrow
With global demand for power on the rise, some
developing countries are ramping up generation
capacity for the first time — while other nations are
updating or replacing aging technologies with greener
alternatives. Fluor is uniquely qualified to help
clients meet their objectives, offering comprehensive
capabilities in solid fuels, biomass, natural gas,
integrated gasification combined cycle (IGCC), next-
generation nuclear and plant betterment. The projects
we handle are large and complex. Yet every bright
light, electrical outlet and thermostat is a subtle
reminder that Fluor is improving everyday life.
Year in Review
Revenues of $1.9 billion were up 64 percent over 2007,
and operating profit was up 98 percent to $76 million.
Ending backlog for the group was $1.8 billion.
Despite a moratorium on most new coal-fi red plants
in the United States, the Power group garnered
new awards revenue totaling $1.3 billion as new
business shifted to gas-fired and plant-betterment
opportunities in both U.S. and international markets.
We won two combined-cycle gas-fired projects, an
industrial cogeneration facility in California and a
$500 million project for a 620-megawatt plant for
Brazos Electric Power Cooperative in Jack County,
Texas. We also expanded our scope of work with an
existing client in Spain with an award for engineering
work on the Soto V combined-cycle project.
In our nuclear business line, we won a new
award for blast-wall construction at the Oconee
Nuclear Station in South Carolina and continued
to provide engineering services for two proposed
advanced boiling water nuclear reactors for Toshiba
International Corporation in South Texas.
The Edison Electric Institute estimates that in the
U.S. alone, electric providers will need to invest
$1.5 to $2 trillion by 2030 to ensure a resilient,
reliable electric grid with higher effi ciency and
lower emissions. Fluor is a leader in providing
the power-generation and plant-betterment
technologies to help customers deliver on these
strategic and environmental challenges.
Cleaner Energy Opportunities
Air quality is a growing priority in many of the regions
we serve, and federal emissions mandates such as the
Clean Air Interstate Rule and the Clean Air Mercury
Rule must be addressed in the United States, along with
carbon dioxide caps and pending initiatives in Europe.
The Power group is executing various fl ue-gas
desulfurization (FGD) retrofits of coal-fi red plants
throughout the United States, including scrubbers
for Luminant in Texas and E.ON U.S. in Kentucky.
In addition, the Power group is leveraging Fluor’s
commercially proven Econamine FG PlusSM
carbon capture technology for CO2 sequestration.
We are currently engaged in a CO2 Capture
Demonstration Project with E.ON Energie AG in
Wilhelmshaven, Germany, and we signed our fi rst
contract to provide front-end engineering for a
CO2 capture project with Gassnova of Norway.
As evidenced by our new awards and ongoing projects
in the nuclear arena, nuclear energy is another clean-
air option gaining momentum in the United States.
We reestablished our nuclear business line in 2007,
and we’ve received the required nuclear construction
certification “N-stamps,” an important prerequisite
to securing major contracts in this market.
Whatever solutions the power market requires,
Fluor has the reach and expertise to help our clients
keep the lights on for the customers they serve.
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