Fagen, Inc. and Southern Company Agreement

Southern Power, a subsidiary of Southern Company that acquires, builds, manages and owns wholesale generation assets, has executed an agreement with Fagen, Inc. of Granite Falls, MN for engineering, procurement, and construction (EPC) of the Nacogdoches Power, LLC biomass power plant in Sacul, Texas, USA. Groundbreaking is expected in November 2009 and commercial operation is projected for the summer of 2012.

When completed, the project will be one of the largest biomass-fueled electric generating facilities in the U.S., capable of generating approximately 100 megawatts. The plant’s output is committed through a 20-year power purchase agreement with Austin Energy, the municipal utility owned by and serving Austin, Texas. The plant’s annual output is capable of providing power to over 70,000 homes in Texas based on average annual consumption rates.

The plant, which will be built on 165 acres, will be fueled with biomass materials, including forest residue from the surrounding areas, wood processing residues and clean municipal wood waste. The project will require approximately 1 million tons of fuel annually, which is planned to be procured within a 75-mile radius of the project site.

“This project is an excellent opportunity to work with Southern Power to help Texas citizens use local renewable fuel resources for energy independence. We look forward to great relations with Nacogdoches County residents and officials as we construct this challenging biomass power plant,” said Ron Fagen, CEO & President of Fagen, Inc.

Zachry Engineering Corporation has been contracted by Fagen Inc. to be the design engineer. Zachry Engineering will provide overall site design, balance of plant engineering and design coordination. Minneapolis, MN will be Zachry Engineering’s prime office for design services.

Fagen, Inc’s partner for the engineering, supply, erection, and commissioning of the biomass boiler and distributed control system is Metso Power, Charlotte, NC. The biomass boiler plant will utilize bubbling fluidized bed (BFB) technology and once operational, will be one of the largest and most efficient biomass boilers in the world.

Mitsubishi Power Systems Americas of Lake Mary, FL, a subsidiary of Mitsubishi Heavy Industries, is Fagen Inc.’s partner for the steam turbine. This turbine is specifically designed to be the most efficient and therefore make as much power as possible from the available energy from the biomass. In this manner Mitsubishi Power Systems Americas is able to minimize the emissions and make this plant the cleanest in the entire region.

Fagen Inc’s partner, Wolf Material Handling Systems of Elk River, MN, has the responsibility for the design, engineering, supply and commissioning of the Biomass Fuel Handling System. This includes truck receiving, processing, storage, reclaim and delivery of fuel to the boiler.

Fagen, Inc. is the largest, most respected merit shop green energy design-builder in the United States. Utilizing a database of over 25,000 civil, mechanical, and electrical direct-hire employees, Fagen, Inc. has constructed 60% of the ethanol production capacity in the United States, multiple wind farms, and significant upgrades to power plants. Fagen, Inc. is prepared to meet industrial demand growth with a large inventory of cranes, including several Manitowoc 18000’s, and one of the largest CAT fleets in the Midwest. The unmatched standard for safety, quality, and service has led Fagen, Inc. to be listed in the top 40 largest contractors in the United States by ENR. Information about Fagen, Inc. can be found by visiting www.fageninc.com.

Zachry Engineering provides engineering and project management services to customers in the power, emerging energy, transportation, and food and beverage industries. Operating six offices throughout the country, the Denver, Colorado-based organization offers everything from design to startup. Zachry Engineering’s parent company, Zachry, is engaged in the planning, building and renewing of industrial infrastructure through full EPC capabilities. Visit www.zhi.com for more information.

Metso Corporation is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries with about 28,000 employees in more than 50 countries. Information about Metso Corporation can be found by visiting www.metso.com.

Mitsubishi Power Systems Americas, a subsidiary of Mitsubishi Heavy Industries, provides customers the most environmentally friendly and efficient power generation equipment including wind, gas and steam turbines, geothermal equipment, gas reciprocating engines, solar generating equipment and emission clean up systems. Visit www.mpshq.com for more information.

Wolf Material Handling Systems has been providing Biomass Fuel Handling Systems to the Pulp/Paper and Power Generation Industries for over 30 years. To learn more about Wolf Material Handling Systems’ capabilities visit www.wolfmhs.com.