Tenaska announced that Burns & McDonnell was awarded a contract to perform the Front End Engineering and Design (FEED) for the Taylorville Energy Center project. The FEED study will include a cost estimate for the detailed engineering, procurement and construction (EPC) project phase.

Tenaska has not executed contracts with licensors selected for the project and expects to do so expeditiously now that the FEED contract has been awarded. The techology licensors must provide process design packages (PDP’s) for their licensed technology. As part of the scope of work for the FEED contract, it’s expected that Burns & McDonnell will develope an integrated plant design from the licensor’s data. An important deliverable from the FEED contractor is a project estimate – usually plus or minus 10% – that can be used to arrange construction financing.

The project estimate for the Taylorville Energy Center project must be submitted to the Illinois Commerce Commission and the Illinois General Assembly for approval since this project will impact the rates that Illinois residents pay for electricity. The cost estimate is forecasted to be approximately $3.5 billion and it’s expected that a cost estimate in this range will be approved.

The Taylorville Energy Center will use Integrated Gasification Combine Cycle (IGCC) technology to gasify Illinois coal and convert it to substitute natural gas (SNG). SNG is equivalent to natural gas and can be commingled and transported in existing natural gas pipelines. The majority of the SNG will be used to run GE gas turbines and produce electricity. The electricity will be distributed to the residents and businesses in Illinois. If, for any reason, the gas turbines cannot utilize all of the SNG that is produced, the excess SNG can be sold for natural gas and transported through natural gas pipelines.