Fluor 2006 Annual Report Download - page 19

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Fluor Corporation 2006 Annual Report 17
(left) Fluor designed and
constructed the Chuck Lenzie
Generating Station, a 1,200 MW
gas-fi red power plant in Nevada.
(right) To meet new clean-air
standards, Fluor is adding FGD
units to this E. ON U.S. coal-
fi red power plant in Kentucky.
AWARDS IN KEY BUSINESS LINES
In 2006 our Power business garnered new awards in all three of
our key business lines — solid fuel, gas and plant-betterment
— a testament to Fluor’s solid reputation in the power
generation market. Key new awards included preliminary notice
to proceed on two 800-megawatt coal-fi red units, as well as
selective catalytic reduction (SCR) additions on existing units
in Central Texas. Other notable projects under way include
work for a new 200-megawatt, $400 million coal-fi red plant in
Nevada and the installation of fl ue gas desulphurization (FGD)
systems at coal-fi red facilities in northern and central Kentucky
and South Carolina.
OPPORTUNITY OUTLOOK
In terms of dollar value, new coal-fi red power generation
projects are expected to have the most impact on our Power
group over the next three to fi ve years, followed by emissions-
reduction projects for older coal plants. We are also prepared
to deliver our reference designs on new gas projects to quickly
expand capacity while solid-fuel projects move forward.
We are positioned for other industry opportunities as well,
including the expected upturn in both the nuclear and integrated
gasifi cation combined cycle (IGCC) power market space.
We have the opportunity to leverage our vast experience in the
developing nuclear market and are fully engaged in the IGCC
market through FEED studies that will enable full-scale
implementation with proven cutting-edge technologies.
*Source: e North American Electric Reliability Council 2006 Long-Term
Reliability Assessment Report.
A COMPANY
THAT DELIVERS
POWERFUL
SOLUTIONS
With electricity demand on the rise
around the world, Fluor is helping our
customers meet their objectives.
In the United States alone, electricity demand is expected
to rise by 19 percent over the next ten years — yet power
capacity is currently on pace to increase by only 6 percent
during that same period.* In order to meet this demand,
power companies must accelerate their eff orts to increase
capacity, starting now. Fluor is helping them meet the
challenge.
For the year, new awards were $635 million, down from
$1 billion in 2005. Segment backlog improved 15 percent to
$1.3 billion and operating profi ts declined to $4 million due
to a fi nal dispute resolution for a completed project.