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AMEC Paragon Keeps $5 Billion Alternative Fuels Project Moving

AMEC, the international engineering and project management company, today announced that Houston-based subsidiary AMEC Paragon has been awarded a contract by Baard Energy to provide engineering and project management services for the front-end engineering and design (FEED) phase of the US$5 billion Ohio River Clean Fuels project in Wellsville, Ohio. The value of the contract has not been announced.

This contract follows AMEC Paragon's initial work as owner's engineer and project management services provider for feasibility studies concerning the integration of various processes at the plant.

The FEED phase is scheduled to commence in November 2007.

The project is being undertaken in response to growing demand for more environmentally-friendly fuels. The facility is expected to produce approximately 50,000 barrels per day of jet and diesel fuel and other liquid products from biomass, coal and other feedstocks. The new facilities will capture at least 80 percent of the carbon dioxide produced during refining. Much of the captured carbon dioxide will be used for enhanced oil recovery in the nearby Appalachian oil fields, with the remainder to be stored in underground caverns.

"With this project, AMEC is taking a leading role in the energy industry's efforts to develop facilities that address global environmental concerns," said Simon Naylor, President of AMEC's Natural Resources Americas business. "We are excited to progress this innovative and important work and to continue to help Baard Energy achieve its goals."

Baard Energy President and Chief Executive Officer John Baardson said, "Phase I of this project went smoothly and according to schedule. We are especially impressed with AMEC's intrinsic expertise in all of the diverse components of this project, and we view our work with AMEC Paragon as a solid model for future alternative fuel projects in the United States."

In addition to continuing in its role as owner's engineer and project management services provider, AMEC Paragon will provide FEED for the facility's site infrastructure, utilities, storage sections and feedstock handling. The company also will support engineering for the plant's liquid fuel production and upgrading facilities.

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