Press Releases

Babcock & Wilcox Power Generation Group to supply boiler and environmental equipment for Wyoming power plant

BARBERTON, Ohio, March 27, 2008 Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has been awarded a contract valued at more than $40 million by Black Hills Corporation to engineer and supply a pulverized coal-fired boiler and environmental control equipment for the Wygen Unit 3 power plant near Gillette, Wyo.

B&W PGG will design and supply the plant's 100-megawatt boiler, which features B&W's innovative AireJetTM burner for low-NOx emissions, selective catalytic reduction system, dry flue gas desulfurization system and fabric filter baghouse. The plant will burn low-sulfur Powder River Basin coal.

Wygen Unit 3 is similar in design to two previous projects B&W completed for Black Hills Corporation - Wygen Units 1 and 2.

"This is our third consecutive boiler and environmental systems project at Black Hills Corporation's Wyodak energy complex," said Brandon Bethards, B&W PGG President. "This extension of our relationship reflects B&W PGG's commitment to providing economical, high-quality products and services. We were pleased with the outcome of the previous projects and Wygen 3 offers another opportunity to further demonstrate our ability to serve their needs."

Engineering on the project has begun at B&W PGG's Barberton, Ohio facility, with shipments of materials to begin later this year. Commissioning of Wygen 3 is slated for 2010.

Black Hills Corporation is a diversified energy company. Its retail businesses are Black Hills Power, an electric utility serving western South Dakota, northeastern Wyoming and southeastern Montana; and Cheyenne Light, Fuel & Power, an electric and gas distribution utility serving the Cheyenne, Wyoming vicinity. Black Hills Energy, the wholesale energy business unit, generates electricity, produces natural gas, oil and coal and markets energy.

Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) is a major operating unit of The Babcock & Wilcox Company, a wholly owned subsidiary of McDermott International, Inc. B&W PGG is a world leader in the power generation industry and designs, engineers, manufactures, services and constructs steam generating and environmental equipment for utilities and industries worldwide. It is located on the Internet at www.babcock.com.

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