BOISE, Idaho, Nov. 9 /PRNewswire-FirstCall/ -- Washington Group International announced today it has been awarded cost-reimbursable contracts by E85 Inc. to build E85's first three ethanol production plants in the Midwest. The contracts together are valued at approximately $150 million.
Washington Group will provide procurement, construction, commissioning, and start-up services for the facilities in Wahoo, Neb., and Red Oak and Council Bluffs, Iowa. Each of the facilities will be capable of producing 110 million gallons of ethanol per year. The corn-based ethanol will be blended with unleaded gasoline to create motor fuel, and the plant will produce commercially viable products in corn gluten feed and meal, corn germ, and wet and dry distiller grains with solubles.
Work on the Wahoo plant started in late September; work on the other two plants is planned to begin during the fourth quarter of 2007. A peak construction force of more than 300 is expected at each site. E85 will invest over $750 million in the three facilities.
"We're pleased to be a part of E85's plans to become a leading supplier of fuel-grade ethanol and to contribute to projects that will provide consumers with more energy alternatives," said Gary C. Baughman, president of Washington Group's Industrial/Process Business Unit, based in Houston.
"E85 sought a contractor capable of managing and delivering multiple projects on an aggressive schedule in today's challenging market, and Washington Group has demonstrated that they are committed to meeting our project goals," said James T. Callahan, president of E85 Inc.
About the Companies
E85 Inc. was founded with a mission of providing a bio-fuel energy alternative to gasoline that will improve automobile performance by boosting octane, reducing environmental pollutants by cleaner burning, and reducing dependence on foreign oil. In addition to bio-fuel ethanol production and distribution, E85 will produce and market corn gluten feed and meal, corn germ, wet and dry distiller grains with solubles, and food-grade carbon dioxide. For more information, visit http://www.e85.com/.
Washington Group International provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. With approximately $4 billion in annual revenue, the company has approximately 25,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation, and water resources. For more information, visit http://www.wgint.com/.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group's annual report on Form 10-K for fiscal year 2006.
Media Contact: Jerry Holloway or Laurie Spiegelberg (208) 386-5255
