(HOUSTON, Texas, SAN JOSE, Calif. and TOKYO, Japan) October 16, 2008 - Calpine Corporation NYSE: CPN and Mitsui & Co., Ltd. announce the completion of construction and commercial operation of the Greenfield Energy Centre (Greenfield), located in Courtright, St. Clair Township, near Sarnia, Ontario, Canada. Greenfield is a limited partnership between subsidiaries of Calpine and Mitsui, each of which hold a 50 percent interest in the project.
"We congratulate the Greenfield project team for the successful completion of this important new energy resource," said Calpine Chief Executive Officer Jack Fusco. "We appreciate the opportunity to have worked with Mitsui and Ontario Power Authority to provide Ontario with a cost-effective, energy efficient, reliable and low-carbon solution to the region's growing electricity needs."
"We are delighted to announce the completion of Greenfield Energy Centre and to contribute to meet the growing electricity demand in Ontario. We have had the pleasure of working with Calpine and Ontario Power Authority on this project which will be providing Ontario with reliable long-term clean energy," said Mitsui Executive Managing Officer Takao Omae.
In 2005, Greenfield was awarded a 20-year clean energy supply contract with the Ontario Power Authority (OPA) to construct and operate the 1,005-megawatt combined-cycle power plant. Greenfield provides energy and capacity to the Independent Electricity System Operator of Ontario. Under the terms of the contract, OPA guarantees revenue equivalent to a fixed monthly payment, plus payment for variable operations and maintenance costs based on actual electricity generation.
The plant is a clean and highly efficient combined-cycle facility fueled by natural gas and is equipped with advanced air emission controls including Dry Low-NOx combustion, Selective Catalytic Reduction technology and a continuous emission monitoring system. With the use of clean-burning natural gas, combined with its high level of thermal efficiency, Greenfield is a relatively low-carbon electric generating facility that will produce approximately half as much carbon dioxide per megawatt-hour of electricity as an older coal-fired power plant.
Greenfield is financed by an 18-year, CAD650 million non-recourse project term loan, co-arranged by BMO Capital Markets, a business unit of BMO Financial Group, and The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Calpine Corporation is helping meet the needs of an economy that demands more and cleaner sources of electricity. Founded in 1984, Calpine is a major U.S. power company, currently operating nearly 24,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 16 states in the United States. Calpine owns, leases, and operates low-carbon, natural gas-fueled and renewable geothermal power plants. Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves. Please visit www.calpine.com for more information.
Mitsui is one of Japan's leading trading houses, with a diversified business portfolio including activities in infrastructure projects, oil & gas, natural resources, chemicals, food, textile and other sectors. Mitsui operates through its trading subsidiaries in 67 countries worldwide, with approximately 42,000 employees on a consolidated basis.
Power generation is one of Mitsui's core businesses, with net generation capacity of 3.8GW. Mitsui owns and manages a portfolio of interests in 29 power stations located in 16 countries.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.