Friday, June 04, 1999

$1 billion energy deal for Trigen-Cinergy




BY MIKE BOYER
The Cincinnati Enquirer

        Trigen-Cinergy Solutions, an energy management partnership of Cinergy Corp., has won a global energy outsourcing agreement from the inorganic chemicals unit of Millennium Chemicals Inc., potentially worth $1 billion over 20 years.

        It is the largest agreement in Trigen-Cinergy's history and its first global agreement with a manufacturer.

        Baltimore-based Millennium has given Trigen-Cinergy an exclusive five-year window to build and operate combined heat and power plants at its operations around the world. Millennium is the world's second-largest producer of titanium dioxide, an important ingredient in paint and other products.

        The agreement, which envisions a 20 percent reduction in energy costs for Millennium's plants worldwide, also includes an unusual sharing arrangement that gives Trigen-Cinergy incentives to drive costs below Millennium's targets.

        The umbrella agreement includes a contract signed this week to install a 28-megawatt combined heat and power plant and operate two existing steam plants at Millennium's Ashtabula, Ohio, plant for 20 years.

        It also includes a contract signed in December to install a 10.4 megawatt combined heat and power plant and to operate existing electrical and steam generation facilities at Millennium's Hawkins Point plant near Baltimore for 15 years.

        The U.S. Department of Energy has established a goal of doubling the amount of such combined heat and power plants operating in the United States by 2010.

        Susan Odiseos, a spokeswoman for Trigen Energy Corp., Cinergy's partner and a leading supplier of combined heat and power operations, said the umbrella agreement will also include other agreements for Millennium plants in Brazil and France, expected to close by year-end.

        It could include other Millennium plants in Australia and the United Kingdom in the future.

        The Ashtabula project is the sixth major announcement by Trigen-Cinergy in the past 10 months.

       



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