Clean Line Energy Signs Agreement with Fluor to Support Transmission Line ProjectTue, 13 Dec 2011 09:09:53 CST
Plains and Eastern Clean Line LLC (Plains & Eastern Clean Line), an affiliate of Clean Line Energy Partners LLC (Clean Line) of Houston, Texas, is pleased to announce a memorandum of understanding (MOU) with Fluor Corporation (NYSE: FLR). Under the MOU, Fluor will provide development support, preliminary engineering, procurement and construction services (EPC) for the first phase of the Plains & Eastern Clean Line transmission line project. The Plains & Eastern Clean Line will connect thousands of megawatts of clean energy generation from western Oklahoma, southwest Kansas, and the Texas Panhandle to Tennessee, Arkansas, and other markets in the Mid-South and Southeast.
"We are excited about the momentum building around the Plains & Eastern Clean Line project. Clean Line is committed to working with local businesses and vendors and our agreement with Fluor will help us build the supply chain around this project that will benefit the communities in our project area," said Michael Skelly, President of Clean Line Energy. "Fluor's experience and expertise building large infrastructure projects will help us fulfill our mission of tapping Oklahoma's energy resources."
As part of the MOU, Fluor with Pike Electric Corporation as a subcontractor to Fluor will provide initial permitting and development support services for the Plains & Eastern Clean Line.
"Fluor continues to play a vital role in the renewable energy space and we are excited to assist Clean Line Energy with the development of this unique transmission line project," said Dave Dunning, President of Fluor's Power Group.
The MOU contemplates that after the project has received all permits and regulatory and financial approvals, Fluor and Pike will provide the full EPC services for the approximately 800-mile overhead high voltage direct current (HVDC) transmission line, which will allow for the delivery of 3,500 megawatts of power and interconnect approximately $7 billion of new clean energy projects. The Plains & Eastern Clean Line will create thousands of jobs and increase state and local tax revenues.
"We are excited to bring our full suite of services to this important renewable energy project. The partnership of Pike, Fluor and Clean Line ensures qualified talent at all levels will be working to make this HVDC transmission line project a success," said Eric Pike, Chairman and CEO of Pike Electric Corporation.
Clean Line has agreed to purchase cable manufactured at General Cable's Malvern, Arkansas facility for this project. The supply order for the Plains & Eastern Clean Line could be worth $100 million or more depending on commodity prices. In Oklahoma, Clean Line has an agreement in place with Pelco Structural LLC (Pelco) by which Pelco will be a preferred supplier for the tubular steel transmission structures. Pelco will supply these structures from its facility, which has approximately 100 employees, in Claremore, Oklahoma.
Support is growing in Oklahoma, Arkansas and Tennessee for HVDC projects to deliver cost-effective clean energy. In October, the Oklahoma Corporation Commission approved Plains and Eastern Clean Line Oklahoma LLC as a public utility in Oklahoma. The approval immediately followed the announcement of the MOU between Plains & Eastern Clean Line and the Tennessee Valley Authority (TVA), a corporation owned by the U.S. government that generates electricity for nine million people in parts of seven Southeastern states. In addition, the Memphis Light, Gas and Water (MLGW) Division Board of Commissioners unanimously passed a resolution in support of the development of HVDC transmission to transport clean energy to western Tennessee.
Developing a project of this scale is a long-term undertaking, and Clean Line Energy is fully committed to developing the Plains & Eastern Clean Line in an environmentally responsible and transparent manner. This project is expected to take several years to fully permit and could begin commercial operations as early as 2017.
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