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B&W Signs Contract to Begin Second Phase of FutureGen 2.0 Carbon Capture Project

Posted March 7, 2013
CHARLOTTE, N.C.

The Babcock & Wilcox Company (B&W) (NYSE: BWC) announced today that its subsidiary, Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), has reached an agreement with the FutureGen Industrial Alliance to begin initial engineering and preparation for full front-end engineering and design work on the U.S. Department of Energy's FutureGen 2.0 carbon capture and storage (CCS) project.

B&W's complete scope of work for FutureGen 2.0 includes the design of the near-zero emissions plant's oxy-coal combustion system, air quality control systems, boiler, steel and other control systems.

The contract authorizes B&W and the FutureGen Industrial Alliance to begin project Phase II-A for the 167 megawatt (gross) power plant in Meredosia, Ill. During this time, B&W and the Alliance will continue to negotiate additional contracts to proceed with full front-end engineering and design work.

The DOE earlier this month announced the beginning of Phase II project development and a new cooperative agreement with the FutureGen Industrial Alliance.

"Our contract with the FutureGen Industrial Alliance is a major milestone in the FutureGen project and we're excited to begin work on this new stage," said J. Randall Data, B&W PGG President and Chief Operating Officer. "As first-of-its-kind CCS technology, FutureGen will be groundbreaking for our team and for America."

The goal of the FutureGen 2.0 project is to upgrade an existing power plant located in Meredosia with B&W's oxy-coal combustion process to separate and capture more than 90 percent of the carbon dioxide (CO2) generated during the combustion process. Oxy-coal combustion uses oxygen mixed with recycled flue gas to replace the normal combustion air in a coal-fired boiler. As coal is burned, the resulting flue gas consists primarily of CO2, which is well-suited for compression and storage.

About B&W

Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,700 people, in addition to approximately 10,400 joint venture employees. Learn more at www.babcock.com.


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