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The Illinois company that built a 53-megawatt cogeneration facility next to the DuPont Co. plant in the Town of Tonawanda is interested in building a larger cogeneration plant in Olean to provide steam for the Turbo Products Division of Dresser Rand Co.

The Olean plant, which would have the capacity to produce about 80 megawatts of electricity, would be located about one-half mile from the Dresser-Rand facility, said Norman Moore, Dresser-Rand's director of human resources.

The cogeneration plant, which would be built by Indeck Energy Services Inc. of Buffalo Grove, Ill., would produce electricity that would be sold to Niagara Mohawk Power Corp., along with steam that Dresser-Rand would use to heat its buildings.

Moore said the cogeneration plant makes sense for Dresser-Rand because the company has more steam-generating capacity than it needs. Rather than generating its own steam to heat itsplants, it would be cheaper and more efficient for Dresser-Rand to buy the steam from the cogeneration facility, Moore said.

Moore said the current plans call for a 38,000-square-foot facility, although the final size of the plant could vary by as much as 20 percent depending on the logistics of the project.

Both Moore and Jan Derdiger, Indeck's manager of business development, emphasized that no deal has been signed. If the plant is built, it could create about 20 jobs, Derdiger said.

"The deal really isn't finalized at this point," Derdiger said. "It's premature for us to be talking about the project at this time."

Under the current plan, the plant would be built along Buffalo Street, just south of the Southern Tier Expressway, on land that is in the Cattaraugus Economic Development Zone, Moore said. Building the plant in the economic development zone would make the project eligible for tax incentives.

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