The Babcock & Wilcox Company (B&W) (NYSE: BWC) announced today that the U.S. Department of Energy (DOE) has allocated an additional $20.5 million in funding to its Cooperative Agreement with Babcock & Wilcox mPower, Inc. (B&W mPower) under the Small Modular Reactor Licensing Technical Support Program.
With this most recent $20.5 million allocation, the full commitment of the Department to the initial budget period has now been made available to B&W mPower under the program. The first installment of $79 million was allocated by the DOE upon the signing of the formal agreement with B&W mPower in April 2013. The DOE has also provided approximately $2 million to national laboratories to perform important analyses and evaluation work related to this project, bringing the total DOE investment to $101 million during this initial project period. It is the intent of the DOE to provide additional funding to the project subject to incremental appropriations from Congress and B&W mPower's compliance with the terms of the agreement.
"This additional funding allocation from the DOE further demonstrates the U.S. government's commitment to supporting private industry in the development and deployment of small modular reactor technology," said Christofer M. Mowry, President of B&W mPower, Inc. "We remain on an aggressive schedule toward the anticipated commercial operation of the Clinch River mPower Plant near Oak Ridge, Tenn., by 2022 and appreciate the DOE's support as we move closer to delivering this vital technology to the global energy market."
The signing of the Cooperative Agreement formalized B&W's cost-share agreement with the DOE, following the selection of the mPower America team - comprised of B&W, the Tennessee Valley Authority and Generation mPower - as the winner of DOE's competitively bid funding opportunity. B&W mPower and Bechtel (who together formed Generation mPower LLC) will provide licensing and engineering support for the mPower America Project.
The B&W mPower reactor is an advanced integral pressurized water reactor designed to generate 180 MW of electricity. The reactor incorporates technology innovations which advance the state-of-the-art in nuclear plant safety, security and economics.
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 10,400 joint venture employees. Learn more at www.babcock.com.
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power distributors serving 9 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River system and assists local power companies and state and local governments with economic development and job creation. www.tva.gov.
Bechtel is among the most respected engineering, project management, and construction companies in the world. We stand apart for our ability to get the job done right - no matter how big, how complex, or how remote. Bechtel operates through five global business units that specialize in civil infrastructure; power generation, communications, and transmission; mining and metals; oil, gas, and chemicals; and government services. Since its founding in 1898, Bechtel has worked on more than 22,000 projects in 140 countries on all seven continents. Today, our 53,000 employees team with customers, partners, and suppliers on diverse projects in nearly 50 countries. For more information about Bechtel visit www.bechtel.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements relating to B&W mPower's expected receipt of funding from DOE and management's plans and expectations regarding the commercial operation of mPower plants. These forward-looking statements are based on management's current expectations and involve a number of risks and uncertainties, including, among other things, our inability to finance or manage costs associated with our mPower research and development efforts, adverse changes in the demand for or competitiveness of nuclear power, our inability to comply with the terms and provisions of our cost-sharing agreement with DOE, changes as a result of regulatory oversight by the Nuclear Regulatory Commission or other U.S. Government agencies, and other factors discussed under the heading "Risk Factors," in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2012 and subsequent quarterly reports on Form 10-Q. If one or more of these risks or other risks materialize, actual events may vary materially from those expressed. 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.
Jenny L. Apker
Vice President, Treasurer and Investor Relations