B&W Vølund Awarded Contracts For More Than $200 Million For Biomass Power Plant in Wales

CHARLOTTE, N.C--()--The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its Denmark-based subsidiary, Babcock & Wilcox Vølund A/S, has been awarded contracts by Margam Green Energy Ltd. for more than $200 million to engineer, procure and operate a state-of-the-art biomass power plant in Margam, Wales. B&W Vølund’s consortium partner, Interserve Construction Ltd., will build the plant.

The plant will be designed to burn 335,000 tons of wood waste biomass annually and generate approximately 40 megawatts of electricity. The facility also will be capable of using municipal waste as a fuel source in the future.

The plant will feature advanced environmental controls designed by B&W Vølund and its Götaverken Miljö AB subsidiary, including a dry flue gas desulfurization system (dry FGD), fabric filter baghouse, continuous emissions monitoring equipment and an advanced DynaGrate® dynamic fuel combustion system.

Babcock & Wilcox Power Generation Group, Inc. Global Power Division Vice President Paul Scavuzzo thanked Margam Green Energy for its selection of B&W Vølund for the project. “Because of their many environmental benefits, biomass and waste-to-energy continue to be preferred renewable energy options for many B&W customers around the world,” Scavuzzo said. “We thank Margam Green Energy for this opportunity and look forward to building and operating this advanced clean energy plant.”

The project also demonstrates B&W’s focus on growing its international power business, said B&W President and Chief Executive Officer E. James Ferland. “The Margam project is the fifth major coal, renewable or waste-to-energy contract announced by B&W’s power generation subsidiary in the last seven months,” Ferland said. “We continue to look globally for opportunities to grow our business in the fossil power and renewable sectors, while maintaining limited exposure to the impact of a turbulent global oil market.”

Engineering is underway in B&W Vølund’s Denmark offices. Construction is scheduled to be completed by the second quarter of 2017.

The project was booked in the first quarter of 2015.

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 11,600 people, in addition to joint venture employees located at projects around the world. Follow us on Twitter @BabcockWilcox and 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 scope, timing and value, to the extent value may be viewed as an indicator of future revenues, of the Margam contracts. These forward-looking statements involve a number of risks and uncertainties, including, among other things, delays or other difficulties executing the Margam contracts and adverse modifications to the contracts, including termination. 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 B&W's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013 and subsequent quarterly reports on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

Contacts

The Babcock & Wilcox Company
Media Contact:
Ryan Cornell, Media Relations, 330-860-1345
rscornell@babcock.com
or
Investor Contact:
Jenny Apker, Vice President, Treasurer and Investor Relations, 704-625-4937
investors@babcock.com

Release Summary

B&W Vølund has been awarded contracts by Margam Green Energy Ltd. for more than $200 million to engineer, procure and operate a state-of-the-art biomass power plant in Wales.

Contacts

The Babcock & Wilcox Company
Media Contact:
Ryan Cornell, Media Relations, 330-860-1345
rscornell@babcock.com
or
Investor Contact:
Jenny Apker, Vice President, Treasurer and Investor Relations, 704-625-4937
investors@babcock.com