Well, here it is...
Wednesday December 15, 10:06 am Eastern Time
Company Press Release
Catalytica's Xonon Specified With GE 7FA Gas Turbines for Enron Power Project
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Dec. 14, 1999--Catalytica Combustion Systems, Inc., a subsidiary of Catalytica, Inc. (Nasdaq:CTAL - news), and GE Power Systems, a division of General Electric (NYSE:GE - news), today announced that Catalytica's Xonon combustion system has been specified as the preferred emissions control system with GE 7FA turbines that have been ordered for the proposed Pastoria Energy Facility.
The Pastoria Energy Facility, a project proposed by affiliates of Enron North America, a subsidiary of Enron Corp., is a 750 megawatt (MW) natural gas fired power generation project located on Tejon Ranch property south of Bakersfield, Calif. The project is presently under regulatory review by the California Energy Commission and is expected to begin construction in 2001 and enter commercial operations by the summer of 2003.
GE Power Systems President and CEO Robert Nardelli commented, ``GE continues to differentiate our products in the marketplace through technology innovations that provide added value for our customers. This project enables us to accelerate the application of Xonon to provide state of the art low emissions gas turbine combustion technology.'
The Xonon combustion system for GE gas turbines is being adapted by GE and Catalytica under a collaborative commercialization agreement announced in November 1998. Xonon achieves stable combustion required for optimal gas turbine performance at temperatures low enough to minimize the formation of NOx, a primary contributor to smog. Xonon has demonstrated the lowest combustion emissions observed in gas turbine operation.
Enron acquired a 15% interest in Catalytica Combustion Systems in December 1997 because of its interest in using Catalytica's Xonon technology to develop environmentally clean power generation facilities.
``The Xonon technology offers an attractive alternative to traditional emissions control systems,' said Cliff Baxter, chairman and CEO of Enron North America. ``We're pleased to be working with GE and Catalytica towards the commercialization of Xonon for use on large-scale turbines.'
Catalytica Combustion Systems President and CEO Dennis Orwig stated, ``This announcement clearly represents a milestone for us. Enron is an obvious first choice for GE and Catalytica for the use of Xonon in a large-scale project.'
Under negotiated agreements, Catalytica is investing $9.9 million to accelerate development of the Xonon-equipped GE gas turbines. Catalytica expects to recover its investment in late 2000 from Enron or may recover this amount through the future sale of Xonon-equipped gas turbines.
Catalytica, Inc. builds businesses in high growth industries where the company's technologies optimize manufacturing and solve environmental problems. Catalytica Pharmaceuticals, Inc. provides drug development and manufacturing products and services to the pharmaceutical industry; Catalytica Combustion Systems, Inc. produces Xonon, a catalytic product that permits essentially pollution free combustion for the energy market; and Catalytica Advanced Technologies, Inc. serves as the incubator for new catalytic technologies for industrial applications.
Catalytica, Inc. employs over 1,600 people and had 1998 revenues of $406 million. Find Catalytica on the World Wide Web at catalytica-inc.com.
This news release contains forward-looking statements regarding incorporation of Catalytica's Xonon combustion system into the GE 7FA turbine, the ability to work closely with Enron and GE to place Xonon-equipped GE7FA turbines at the Pastoria project, the planned installation of these turbines at the Pastoria project, the ability to successfully complete regulatory reviews to commence construction of the Pastoria project, the ability for Catalytica to recover its investment, the ability to market the Company's development, manufacturing and other services to current and prospective clients, and Catalytica's competitive position in its markets. Actual results could differ and such differences could be material. These statements involve risks and uncertainties, including without limitation, the fact that there may be unanticipated technical or other factors related to the incorporation of Xonon into the GE 7FA turbines, installation timelines and regulatory review outcomes are uncertain, recovery of investments are subject to current market conditions that cannot be predicted at this time, the market is an emerging market and actual market opportunities may differ from those stated. Catalytica undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release. Investors are encouraged to review Catalytica's Form 10K for the year ending December 31, 1998, Forms 10Q for the periods ending March 31, June 30, and September 30, 1999, as well as Form S4/A dated August 19, 1999, filed with the Securities and Exchange Commission for additional factors that could affect Catalytica's future performance. |
