June 12, 2007

Washington Group International to Provide Design, Engineering Services for First Near-Zero Emissions, Coal-Fueled Power Plant

Washington Group International (NYSE: WNG - News) announced today that it has been selected by the FutureGen Industrial Alliance to provide architectural, design, and engineering support services for the FutureGen initiative, a public-private partnership to develop and build a first-of-its-kind, coal-fueled, near-zero emissions electric power plant.
The prototype project, estimated in excess of $1 billion, will also be the world's first integrated carbon sequestration and hydrogen gas production research power plant. The approximate 275-megawatt Integrated (coal) Gasification Combined Cycle (IGCC) power plant will use cutting-edge technologies to generate electricity while capturing and permanently storing carbon dioxide, a greenhouse gas, deep underground. The project will convert a variety of coal types to hydrogen gas for power generation and other potential industrial uses.

The project includes development of a large-scale engineering laboratory and research platform for evaluating and testing new technologies for the conversion of coal to fuel gases, for the capture of carbon dioxide, and for the clean production of power.

As the engineering and construction management provider, Washington Group International will assist the Alliance in the evaluation and selection of technologies for coal gasification and for gas and power generation, as well as integrate the selected technologies and packages for the processes across the facility.

"The FutureGen initiative tackles some of the most pressing issues in the energy industry today -- the use of our abundant coal resources, the control of greenhouse gases, and the development of new, clean, and reliable energy sources," said Stephen M. Johnson, Washington Group International's senior executive vice president and executive sponsor for this project. "Washington Group International's expertise in energy and industrial processes spans the needs of this showcase program, and we have committed some of our best talent to help develop a project that is extremely important to the United States and to the industrialized world."

"The FutureGen project is complex, incorporates a significant amount of first-of-a-kind technology, and is both cost- and schedule-sensitive," said Jerry J. Oliver, the FutureGen Industrial Alliance's senior vice president for project development. "To be successful, we needed a strong team with a broad level of capability. I am very pleased with both the outstanding team provided and with the willingness of Washington Group International to work closely with the Alliance as we move quickly forward."

The initial technology selection, design, and engineering work is scheduled for completion in March 2008.


The FutureGen Industrial Alliance is a non-profit industrial consortium representing the coal and power industries that is partnering with the U.S. Department of Energy to design and build the prototype facility.

Washington Group International (NYSE: WNG - News) provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. Headquartered in Boise, Idaho, with more than $3 billion in annual revenue, the company has approximately 25,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation, and water resources. For more information, visit http://www.wgint.com.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group's annual report on Form 10-K for fiscal year 2006.


Source : biz.yahoo.com

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