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BW0035  OCT 15,2001       2:01 PACIFIC      05:01 EASTERN


( BW)(TX-INDUSTRIAL-INFO-RES) US Chemical Companies Spending Millions
To Produce Their Own Electricity, in an Advisory by Industrialinfo.com

    Business Editors

	   HOUSTON--(BUSINESS WIRE)--Oct. 15, 2001--The following is an
advisory by Industrialinfo.com (Industrial Information Resources,
Inc.; Houston, Texas). The Dow Chemical Company, BP and Occidental
Chemical Company all have something new in common. These companies,
along with a growing list of their peers, are increasingly turning to
combined heat and power (CHP) generation, more commonly known as
cogeneration, as a solution for their electricity and process steam
needs. The co-production of electricity and steam are not new ideas,
but their popularity in the U.S. is growing. Recent estimates have
chemical companies responsible for nearly 1/3 or 17,000 mega-watts
(MW) of all electricity generated through cogeneration in the US.
	   Aided by legislation passed in 1978 allowing the sale of excess
electricity to local grids and more recent deregulation, projects of
all sizes are being planned and built across the country. Many factors
have contributed to make cogeneration more attractive to chemical
companies and chief among them are favorable economics and
environmental efficiency. Even the smaller chemical companies are
building cogeneration units, thanks to recent technological
breakthroughs.
	   Dow Chemical and American Electric Power have teamed up to build a
$325 million 900MW cogeneration at Dow's site in Plaquemine,
Louisiana, scheduled to start construction in the fourth quarter of
2001 and be completed in 2003. BP and Cinergy Solutions broke ground
late last month on a 570MW plant for BP's Texas City, Texas refinery
and chemical complex. The $275 million plant is expected to come
online in 2004. Occidental Chemical Corporation is reviewing plans for
an 80MW plant for one of its Gulf Coast sites with approval of for the
$40 million project expected in June of 2002.
	   "Traditional power producers were less than thrilled with the
increasing trend towards cogeneration, as they were not only losing
part of their customer base, but were also seeing those customers
emerge as rivals on the open market," according to Annette Kreuger,
Chemical Industry Specialist with Industrialinfo.com. "To offset the
losses, those same traditional energy producers are now bending over
backwards to put together attractive design and construction packages
for the chemical companies. In some cases, they are entering into
partnerships with the companies to share costs and profits. In these
days of deregulation, there are a host of ways to set up these new
cogen units, but the bottom line is that chemical producers want more
control of how their energy dollars are spent."
	   Industrialinfo.com provides daily news related to the industrial
market place including industry alerts and databases for the energy
and industrial markets. For more information on trends and upcoming
construction activities in the Chemical Processing (CPI) markets as
well as other industrial sectors send inquiries to
chemicalgroup@industrialinfo.com or visit us at
www.industrialinfo.com.

    --30--LS/na*

    CONTACT: Industrial Information Resources Inc., Houston
             Trey Hamblet, 713/783-5147

    KEYWORD: TEXAS LOUISIANA
    INDUSTRY KEYWORD: CHEMICALS/PLASTICS ENERGY UTILITIES
    SOURCE: Industrial Information Resources Inc.

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