(CHARLOTTE, N.C. – April 14, 2014) – The Babcock & Wilcox Company (B&W) (NYSE:BWC) is announcing plans to restructure its mPower Small Modular Reactor program to focus on technology development.
B&W continues to believe in the strength of the mPower technology, but without the ability to secure significant additional investors or customer Engineering, Procurement and Construction contracts to provide the financial support necessary to develop and deploy mPower reactors, the current development pace will be slowed.
“The B&W mPower reactor can play a significant role in meeting our country’s climate change goals, energy needs, and support U.S. job and manufacturing growth,” said E. James Ferland, President and CEO of B&W. “We look forward to working with our stakeholders and partners in the continued development of this important technology.”
B&W notified the U.S. Department of Energy (DOE) on April 9 of its plans for reduced spending, indicating it would work with the DOE and other stakeholders during the next one to two months to confirm the best path forward to develop a mutually agreeable plan including program milestones for continuing the cost-shared industry partnership program. B&W expects to invest up to $15 million annually, beginning the third quarter of 2014.
“While we have made notable progress in developing a world-class technology, there is still significant work involved in bringing this climate-friendly technology to reality,” Ferland said. “The support provided by DOE, Congress, the Tennessee Valley Authority and our other partners has been critical and valuable. We look forward to working with our stakeholders to find the most efficient way to move this technology toward licensing and deployment in the mid-2020 timeframe.”
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 12,000 people, in addition to approximately 10,200 joint venture employees. Learn more at www.babcock.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including statements regarding management’s plans and expectations regarding the mPower small modular reactor program. These forward-looking statements involve a number of risks and uncertainties, including, among other things, difficulties in financing mPower research and development efforts, changes in the demand for or competitiveness of nuclear power and changes as a result of regulatory oversight or other actions by the Nuclear Regulatory Commission or other U.S. Government agencies. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2013. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
A presentation with additional information regarding this announcement is available on the Investor Relations section of our website at www.babcock.com.
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The Babcock & Wilcox Company
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The Babcock & Wilcox Company