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Shell WindEnergy Inc. and Luminant, TXU Corp.'s competitive power generation business, have formed a joint development agreement to build a 3,000 MW wind project in the Texas Panhandle and to work together on other renewable energy developments in Texas. Shell and Luminant say they will explore the use of compressed air storage, in which excess power could be used to pump air underground for use later in generating electricity.

"Luminant is committed to providing Texans with clean sources of energy, and this agreement with Shell is a real next step in delivering on that commitment,” says Mike Childers, CEO of Luminant Development, Luminant's generation development operation. "Luminant is already the state leader in wind-energy purchases, and co-developing this project would take us a long way toward our goal of doubling our portfolio."

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