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Babcock & Wilcox Power Generation Group Inc. (B&W PGG), an affiliate of leading clean energy technology and service provider The Babcock & Wilcox Co. (BWC - Snapshot Report), has entered into a deal with the FutureGen Industrial Alliance.

Per the contract, B&W PGG is expected to carry out full front-end engineering and design on the development of Meredosia, Illinois-based FutureGen 2.0 carbon capture and storage (CCS) project. Included in the contract, the company will likely design and provide a boiler island, oxy-coal combustion system and gas quality control system.

B&W PGG added that the primary aim of the project is to reduce the carbon dioxide emission of the coal fired plant by 90% which comes to above 1 million tons annually.

B&W PGG reveals that the current deal with FutureGen Industrial Alliance represents the beginning of the second phase of the U.S. Department of Energy (DOE) project. Moreover, DOE will provide finance of up to $49 million for Phase 2 operations of BWC. However, the manufacturing of the coal fired plant is expected to start by Jun 2014 and will constitute the third phase of the DOE-funded development.  

Charlotte, North Carolina-based BWC is engaged in providing clean energy technology and services for nuclear, fossil and renewable power markets worldwide. The company operates in four business units: Power Generation, Nuclear Operations, Technical Services and Nuclear Energy.  

BWC currently holds a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at energy firms like Stone Energy Corp. (SGY - Analyst Report), Enbridge Energy Management LLC (EEQ - Snapshot Report) and Matador Resources Co. (MTDR - Snapshot Report) that offer value. All the stocks sport a Zacks Rank #1 (Strong Buy).

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