Shaw Group
NYSE : SGR

September 22, 2005 06:59 ET

Shaw Awarded Engineering, Procurement and Construction Contract for New 600 MW Power Plant to Be Built by Cleco

BATON ROUGE, La.--(CCNMatthews - Sep 22, 2005) -

The Shaw Group Inc. (NYSE:SGR) today announced that it has been awarded an engineering, procurement and construction (EPC) contract by Cleco Corporation's (NYSE:CNL) subsidiary, Cleco Power LLC, to build a new 600 MW electricity generating plant. The new plant will incorporate state-of-the-art circulating fluidized bed (CFB) technology in two 300 MW units supplying steam to a single steam turbine generator. The new facility will be located at Cleco's Rodemacher Power Station near Boyce, Louisiana and is scheduled to be completed by mid-2009 with a total cost of approximately $1 billion. Shaw's EPC contract, which does not include owner-supplied components and financing costs of the project, is valued at approximately $680 million.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "We are very pleased to have been selected by Cleco to design, engineer and construct this new clean-energy technology plant which will be capable of using petroleum coke, coal and other fuels to generate power in an environmentally sound and cost-effective process. This award is yet another opportunity for our Shaw team to demonstrate its complete project capabilities in the expanding clean-energy technology market. As a Baton Rouge company, rebuilding in our home state in the wake of Hurricane Katrina is particularly important to us and this significant project will create much needed jobs in Louisiana. I am convinced that Louisiana boasts the best craft labor force in the world and we are committed to employing local contractors and craftsmen to assist us with this project whenever possible."

Mr. Bernhard continued, "The high costs of rising oil and natural gas prices affects us all, every time we get in our car and take a drive. These rising prices are also increasing the cost of the electricity we use in our homes and for industry. Using CFB technology, Cleco's new plant will be one of the cleanest of its type in the world and will provide economical energy solutions to all of Cleco's customers. Shaw's ability to engineer clean and efficient electricity generation using multiple solid fuels provides a workable solution as an alternative to the higher cost fuels and allows our clients to meet their business objectives effectively."

Cleco Corp. is a regional energy provider headquartered in Pineville, La. It operates a regulated electric utility company that serves about 265,000 customers across Louisiana. Cleco also operates a wholesale energy business that has approximately 1,400 megawatts of generating capacity. For more information about Cleco, visit www.cleco.com.

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with over $3 billion in annual revenues, Shaw employs approximately 20,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. The Company was recently named to Fortune magazine's annual list of "America's Most Admired Companies" for the second consecutive year. For further information, please visit Shaw's website at www.shawgrp.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained herein that are not historical facts (including without limitation statements to the effect that the Company or its management "believes," "expects," "anticipates," "plans," or other similar expressions) and statements related to revenues, earnings, backlog, or other financial information or results are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions and are subject to change based upon various factors. Should one or more of such risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A description of some of the risks and uncertainties that could cause actual results to differ materially from such forward-looking statements can be found in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Form 10-K and Form 10-Q reports, and on the Company's web-site under the heading "Forward-Looking Statements". These documents are also available from the Securities and Exchange Commission or from the Investor Relations department of Shaw. For more information on the company and announcements it makes from time to time on a regional basis visit our web site at www.shawgrp.com.

Contact Information

  • The Shaw Group Inc., Baton Rouge
    Chris D. Sammons, 225-932-2500
    www.shawgrp.com