HOUSTON, June 17, 2005 – Tondu Corporation, a leading Houston-based power plant developer, announced they have entered into an agreement with Shell Global Solutions (US) Inc. to utilize the Shell Coal Gasification Process (SCGP) technology in Integrated Gasification Combined Cycle (IGCC) projects that Tondu is currently developing. This partnership will allow Tondu to offer low cost and environmentally responsible electricity while utilizing the most prolific energy resource in America with site-specific competitive advantages.
With its abundant availability, coal remains an important energy resource in energy production worldwide. Through gasification, organizations can fully utilize the availability of coal and provide a competitive solution that greatly improves air-quality emissions from the process. Tondu selected SCGP after conducting extensive research into gasification technology, which included site visits to commercially operating gasification and IGCC projects in the Netherlands, Spain, Japan, Florida, Indiana, and Tennessee.
Shell’s SCGP offers a clean, efficient method for energy conversion by delivering ultra-low emissions comparable to a natural gas fueled power plant at a cost competitive with a standard coal fired facility. With natural gas prices over $7/MMBTU, solid fueled, competitively priced electricity without the negative environmental impacts of standard coal fired technology is in strong demand. With the recent sale of 12 new coal fueled gasification plants in China, the SCGP technology is the worldwide leader in high efficiency coal fueled gasification technology.
“We are excited about entering into this relationship with Shell Global Solutions, which combines Tondu’s project development skills with Shell’s leadership in solid fueled IGCC technology” said Joe Tondu, President of Tondu. “We believe the advanced Shell SCGP-IGCC configuration will deliver utility level reliability with the lowest cost electricity available from any solid fueled technology,” Tondu concluded.
Tondu is currently conducting in-depth site evaluations on a number of potential project sites in the mid-continent US region with a focus on brownfield sites that provide logistic and infrastructure synergies. Several of these sites are in advanced stages of evaluations. Tondu is also evaluating partnerships with utilities to locate projects adjacent to, and in some cases integrated with their existing power plants. The target projects are in the 300 MW to 550 MW range.
Tondu Corporation is a business development company based in Houston, Texas. As a developer, Tondu’s primary function is to bring together all of the elements required to make a business succeed. Tondu identifies the opportunity, assembles the development team, documents the transaction, invests in the project development, raises the remaining required financing, and manages its successful operations.