Date: April 18, 2011
Source: Babcock & Wilcox Company and KBR Inc.
A consortium of companies including subsidiaries of Babcock & Wilcox and KBR Inc won a $688 million contract with Florida's Palm Beach County Solid Waste Authority to provide engineering and construction services for the county's waste-to-energy facility. The county plans to construct three mass-burn boilers capable of generating up to 95 megawatts of electricity. Work on the project is expected to begin in May. The project also includes the design and construction of grates, ash systems, metals recovery systems, emissions control equipment – including a dry flue gas desulfurization unit, baghouse, carbon injection and selective catalytic reduction system – duct work and other components. B&W will design and supply the boilers and air quality control systems. KBR's subsidiary BE&K will provide engineering and procurement of the balance of plant equipment and provide overall construction services for the project.
PRESS RELEASE
April 18, 2011
KBR Consortium Awarded $668 Million Engineering, Procurement, and Construction Contract for Waste-to-Energy Facility In Palm Beach County, Fla.
KBR (NYSE: KBR) announced today that a consortium consisting of its subsidiary, BE&K Construction Company LLC (BE&K) and a subsidiary of The Babcock & Wilcox Company (B&W) has been awarded a contract by the Palm Beach County Solid Waste Authority (SWA) to provide engineering, procurement and construction (EPC) services for the County's new state-of-the-art waste-to-energy (WTE) facility. The contract for the EPC phase of the project – for which BE&K and B&W will share the work scope – is valued at $668 million with a large portion of the work to be performed by BE&K.
The project will consist of three new mass burn boilers capable of generating up to 95 gross megawatts of electricity, grates, ash systems, metals recovery systems, emissions control equipment – including a dry flue gas desulfurization unit, baghouse, carbon injection and selective catalytic reduction system – duct work and other components. B&W will design and supply the boilers and air quality control systems. BE&K will provide engineering and procurement of the balance of plant equipment and provide overall construction services for the project. Work on the project is expected to begin in May 2011. The contract award follows the successful completion by BE&K of a major refurbishment of the County's existing two-boiler WTE facility.
"We are proud to be part of the team selected by the Palm Beach County Solid Waste Authority to deliver EPC services for such an historic and significant project for the County," said Jim Stewart, President, KBR Power & Industrial. "Having joined forces with Babcock & Wilcox on more than 40 major design/build projects for the last 40 plus years, I am confident that this team offers the unparalleled execution know-how necessary to successfully deliver a world-class facility to Palm Beach County and its residents."
The facility, once complete, will be capable of processing 3,000 tons of municipal solid waste per day to produce electricity and significantly reduce the amount of waste sent to the county's landfill. The project scope includes the installation of a metals recovery system to maximize the recovery and recycle of aluminum, steel and other metals.
The project is expected to create the equivalent of 325 full-time construction jobs in West Palm Beach, with more than 900 people to be employed during some phases of construction. When operational, the new plant is expected to employ 64 permanent, full-time workers.
KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets. For more information, visit www.kbr.com.
CONTACT:
Rob Kukla, Jr.
Director, Investor Relations
713-753-5082
investors@kbr.com.
or
Gabriela Segura
Manager, Media Relations
713-753-8694
gabriela.segura@kbr.com.
PRESS RELEASE
April 18, 2011
B&W Wins Waste-to-Energy Plant Contracts in West Palm Beach, Fla. Totaling $900 Million
The Babcock & Wilcox Company (B&W) (NYSE: BWC) and its consortium partner, BE&K Construction Company, LLC (BE&K), have been awarded a contract worth more than $668 million to engineer, design, procure and construct a new, state-of-the-art waste-to-energy power plant for the Solid Waste Authority (SWA) of Palm Beach County in West Palm Beach, Fla.
B&W also was awarded a contract to provide operation and maintenance (O&M) services for the new facility. The first 10-year phase of the 20-year O&M agreement is valued at approximately $235 million.
B&W and BE&K will share the design and build work scope, while B&W will exclusively perform the O&M services. The SWA will release the consortium to begin the design and limited procurement this year, with full release scheduled in 2012.
B&W will design and supply three mass burn boilers capable of generating up to 95 gross megawatts of electricity, grates, ash systems, metals recovery systems, emissions control equipment - including a dry flue gas desulfurization unit, baghouse, carbon injection and selective catalytic reduction system - duct work and other components. BE&K will provide the balance of plant equipment and construction services.
The facility, once complete, will be capable of processing 3,000 tons of municipal solid waste per day to produce electricity and significantly reduce the amount of waste sent to the county's landfill. The project scope includes the installation of a metals recovery system to maximize the recovery and recycle of aluminum, steel and other metals.
The new plant is to be located on 24 acres adjacent to the SWA's existing waste-to-energy plant, the Palm Beach Renewable Energy Facility No.1, which also was designed, built and has been operated by B&W for more than two decades.
"B&W has endeavored to provide the best possible value to the SWA and to the people of Palm Beach County," said B&W President and CEO Brandon C. Bethards. "I expect the new plant will be an outstanding asset, capable of providing affordable power and waste management for the county, and creating hundreds of jobs in Palm Beach County."
The project is expected to create the equivalent of 325 full-time construction jobs in West Palm Beach, with more than 900 people to be employed during some phases of construction. When operational, the new plant will employ 64 permanent, full-time workers.
B&W engineering, technical and support personnel are expected to begin design work in Barberton this month. Furnace wall panels, boiler pressure parts and various components are targeted for fabrication in B&W's North American plants. The waste-to-energy plant is scheduled for commercial operation in spring 2015.
About The Babcock & Wilcox Company
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 10,000 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 relating to the value, scope and timing of the West Palm Beach waste-to-energy contract and the benefits and capabilities expected in connection with the new plant. These forward-looking statements involve a number of risks and uncertainties, including, among other things, delays or other difficulties executing on our contracts in backlog and adverse changes affecting the renewable energy industry. If one or more of these or other risks materialize, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see B&W's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2010. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
Media Contact:
Ryan Cornell
Communications Specialist
The Babcock & Wilcox Company
rscornell@babcock.com
Investor Contact:
Michael P. Dickerson
Vice President and Investor Relations Officer
The Babcock & Wilcox Company
704.625.4944
investors@babcock.com
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