Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The Babcock & Wilcox Company (BWC - Snapshot Report) – through its affiliate Babcock & Wilcox Power Generation Group Inc. – entered into an agreement with FutureGen Industrial Alliance to begin work on the U.S. Department of Energy’s FutureGen 2.0 carbon capture and storage (CCS) project. The agreement is for initial engineering and preparation for full front-end engineering and design work of the CCS project.

The whole project is valued at $1.65 billion and the estimated value of the engineering and design work is $130 million.

Per the deal, B&W will design the near-zero emissions plant’s oxy-coal combustion system, air quality control systems, boiler, steel and other control systems.

The deal authorizes B&W and FutureGen Industrial Alliance to start Phase II-A of the project for the 167 megawatt power plant in Meredosia, Ill.

The primary aim of the FutureGen 2.0 project is to improve an existing power plant located in Meredosia with B&W’s oxy-coal combustion process. This will separate and capture more than 90% of the carbon dioxide (CO2) generated during the combustion process.

Headquartered in Charlotte, N.C, Babcock & Wilcox is engaged in providing clean energy technology and services for the nuclear, fossil and renewable power markets worldwide. The company – which was spun off as a separate, independent and publicly traded entity from energy-focused engineering and construction firm McDermott International (MDR - Analyst Report) in Aug 2010 – operates in four business units: Power Generation, Nuclear Operations, Technical Services and Nuclear Energy.

B&W currently carries a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next 1 to 3 months.

In addition to B&W, there are other engineering firms in the energy sector like Altra Holdings Inc. (AIMC - Snapshot Report) and EnPro Industries Inc. (NPO - Snapshot Report) that offer value and are worth considering. Both these stocks sport a Zacks Rank #1 (Strong Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%