Chevron and Keenan to Build and Operate $100 Million Central Utility Plant at National Interagency Biodefense Campus

FREDERICK, Md., Aug. 7 /PRNewswire-FirstCall/ -- Chevron Corporation today announced that the team of Chevron Energy Solutions and Keenan Development will build and operate a $100 million central utility plant to provide secure energy to the National Interagency Biodefense Campus (NIBC) under construction at the United States Army's Fort Detrick in Frederick, Maryland.

This is the largest of many federal projects that Chevron Energy Solutions, a Chevron subsidiary, has developed in support of government efforts to improve energy reliability and efficiency at federal facilities nationwide.

The plant will be the first energy project established through the Department of Defense's enhanced-use leasing authority, which allows private companies to develop non-excess military property for mission enhancing and marketable long-term uses. Keenan Development is leasing the project land from Fort Detrick and will own the plant. Chevron Energy Solutions is designing and building the plant and will operate it.

When completed in early 2008, the new, energy efficient facility will deliver highly reliable steam, chilled water and conditioned stand-by emergency power to the NIBC. The plant will support some of the highest level bio-safety containment laboratories in the world -- the National Institutes of Health's National Institute of Allergy and Infectious Diseases Integrated Research Facility (NIAID IRF), the Department of Homeland Security's National Biodefense Analysis and Countermeasures Center (NBACC), U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID), and Fort Detrick's Steam Sterilization Plant.

"This project clearly demonstrates the value of Army's streamlined enhanced-use leasing program to the military and to the local, state and regional economies," said Joseph W. Whitaker, Army's Deputy Assistant Secretary for Installations and Housing.

"The energy produced by this plant will help ensure continued progress in biomedical research and other critical defense work at Fort Detrick," said Colonel Gina Deutsch, garrison commander at Fort Detrick. "In supporting our nation's biodefense laboratories, this project is supporting the security of our country."

The Army selected the team of Chevron Energy Solutions and Keenan Development through an extensive competitive process involving several teams of national energy services and development companies.

"Chevron Energy Solutions is honored to partner with the U.S. Military and Keenan Development in developing this facility," said Jim Davis, president of Chevron Energy Solutions. "We recognize energy reliability and efficiency are critical concerns of the federal government, and we're proud to support them by providing the highest level of energy security possible."

"From the outset of this project, it was clear the Army was seeking the most efficient, cost effective, and reliable means of continually strengthening its research and national security capabilities," said Keenan Development principal, John Hill. "We are very pleased that the Army's goals will be achieved through the comprehensive solutions Keenan Development and Chevron Energy Solutions are providing."

The NIBC is a key component of the National Biodefense Strategy, a multi- agency directive established by the U.S. Government in response to the September 2001 terrorist attacks. Fort Detrick was chosen as the site of the NIBC due to the established presence of USAMRIID, with its expertise in biodefense and medical research, and because of the security the post provides. With the imperative to complete the NIBC facilities, Fort Detrick determined that enhanced-use leasing involving the private sector was the best option for implementing the central utility plant.

Chevron Energy Solutions partners with institutions and businesses to improve facilities, increase efficiency, reduce energy consumption and costs, and ensure reliable, high-quality energy for critical operations. Through contracts with the U.S. Department of Defense and the U.S. Department of Energy, for example, the company engineered and installed at three military bases facility improvements that will save U.S. taxpayers at least $151 million. At mail facilities in Northern California, the company is installing upgrades that will save the Postal Service more than $2 million per year in energy costs. For more information about Chevron Energy Solutions, please visit their web site at http://www.chevronenergy.com/.

Keenan Development for more than two decades has developed, financed and design-built projects for the public sector. Its projects range from moderately sized design/build administrative offices to large, high-tech laboratory and research facilities; from preservation of historic facilities to new construction on college campuses and military installations. For more information, please see Keenan's web site at http://www.kdallc.com/.

For more information about the Army's enhanced-use leasing program please see the Army's website at http://eul.army.mil/.

Contacts: Diane Padurean, Chevron Energy Solutions -- 415-733-4629 Leif Sollid, Chevron Corporation -- 925-842-3422 Mike Penland, Keenan Development -- 803-753-5815