Dow Completes Cogeneration Purchase

Facility should lower Dow's energy costs.

On Dec. 1, 2006, Dow Chemical Co. completed its purchase of the Plaquemine Cogeneration Facility in Plaquemine, La., from a subsidiary of American Electric Power. The facility, which consists of four 170-megawatt gas-fired combustion turbine generators and a 200-megawatt steam turbine, has a capacity of 880 megawatts of power and 5 million pounds per hour of steam.

Dow had leased and operated the facility since it began commercial operations in March 2004.

"Purchasing the world-scale facility will enable Dow to generate power and steam via more energy-efficient assets while decreasing our use of older, less-efficient equipment over time," said John Dearborn, global vice president for energy, at the time of the purchase announcement. "With domestic natural gas at high and globally noncompetitive prices, this state-of-the-art cogeneration facility will help lower Dow's energy costs, while making our Plaquemine, La., manufacturing site more competitive."

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