Babcock & Wilcox Signs Agreement for Power Plant Fuel-Switching Project Valued at Approximately $246 Million
18 Marzo 2024 - 4:30AM
Business Wire
- B&W has received limited notice to proceed on
coal-to-natural gas conversion project for North American power
plant
- Company sees strong operating momentum in 2024 led by Thermal
and Environmental business segments, with new bookings and stronger
financial performance expected across all segments
Babcock & Wilcox (B&W) (NYSE: BW) announced today that
its B&W Thermal business segment has signed an agreement valued
at approximately $246 million for a gas conversion project for a
power plant in North America. Under the agreement, B&W has
received limited notice to proceed (LNTP) for the coal-to-natural
gas project. Notice to proceed for the full contract is anticipated
in the fourth quarter of 2024.
B&W will convert the plant’s two coal-fired boilers –
totaling more than 1,000 megawatts – to use natural gas fuel.
B&W’s full scope would include the design and installation of
new burners, air systems, fans and other equipment necessary to
implement the fuel switch.
“Utilities across North America and throughout the world are
evaluating options to extend the life of their thermal power
generating assets,” said Chris Riker, Senior Vice President,
B&W Thermal. “Replacing coal or oil with cleaner-burning fuels
like natural gas, biofuels or hydrogen is often a cost-effective
way for plant owners to lower emissions while maintaining reliable
power generation capacity.”
“B&W’s extensive field construction experience and advanced
technologies – such as specialized combustion equipment supplied by
our Babcock & Wilcox FPS, Inc. (FPS) subsidiary – are ideally
suited for large fuel-switching projects,” Riker added. “This
project demonstrates the strength of our Thermal business as we
leverage our broad capabilities to help utilities maintain adequate
energy supply for their customers amid a continuing increase in
demand for power.”
“This is a major agreement that reflects the strength and
performance of our technology and our leadership role in the energy
transition on several fronts,” said Kenneth Young, B&W’s
Chairman and Chief Executive Officer. “Our acquisition of FPS
places us in a unique role to provide turn-key services for gas
conversion projects. We are executing on our growth plan with a
healthy demand and extensive pipeline across our business. We
anticipate the year ahead to be a robust period for our company
with solid bookings and stronger financial performance across all
of our segments.”
The Babcock & Wilcox Company will begin engineering and
design work under the LNTP immediately with support from affiliate,
FPS. Babcock & Wilcox Construction Co., LLC, will perform the
construction portion of the project under an intercompany agreement
when a full notice to proceed is received.
About Babcock & Wilcox
Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises,
Inc. is a leader in energy and environmental products and services
for power and industrial markets worldwide. Follow us on LinkedIn
and learn more at babcock.com.
Forward-Looking Statements
B&W cautions that this release contains forward-looking
statements, including, without limitation, statements relating to a
limited notice to proceed, and an anticipated full notice to
proceed, in connection with a fuel switching project at a power
plant in North America. These forward-looking statements are based
on management’s current expectations and involve a number of risks
and uncertainties. For a more complete discussion of these risk
factors, see our filings with the Securities and Exchange
Commission, including our most recent annual report on Form 10-K.
If one or more of these risks or other risks materialize, actual
results may vary materially from those expressed. We caution
readers not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release, and we
undertake no obligation to update or revise any forward-looking
statement, except to the extent required by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240318857303/en/
Investor Contact: Investor Relations Babcock & Wilcox
704.625.4944 investors@babcock.com
Media Contact: Ryan Cornell Public Relations Babcock
& Wilcox 330.860.1345 rscornell@babcock.com
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