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Babcock & Wilcox Wins Contract
The Babcock & Wilcox Company won a contract to render engineering, procurement and construction services to Interstate Power and Light Company. Babcock & Wilcox will execute the deal, worth $290 million, through its affiliate within its power generation segment – Babcock & Wilcox Construction Co. (‘BWCC”).
Interstate Power and Light Company will employ the services to set up environmental control systems at Ottumwa Generating Station power plant in Ottumwa, Iowa.
Babcock & Wilcox’s contribution for the deal involves $43 million for the design and delivery of environmental equipment. The rest of the deal will be conducted by BWCC along with its joint venture partner – Burns & McDonnell Engineering Company.
The joint venture will work toward site construction, including the manufacture of two spray dry absorber (SDA) systems to control the effects of sulfur dioxide (SO2). They will also set up two pulse jet fabric filter baghouses to minimize the particulate emissions at the 726 megawatt (MW), coal-fired Ottumwa facility.
BWCC and Kansas City-based Burns & McDonnell will also extend engineering works for the other parts of the plant and supply flues, fans, foundations and electrical job.
The companies have already commenced their work at the construction site and start up and commissioning of environmental equipment is slated to be largely completed by January 2015.
Headquartered in Charlotte, North Carolina, Babcock & Wilcox is engaged in providing clean energy technology and services for the nuclear, fossil, and renewable power markets worldwide. The company operates in four business units: Power Generation, Nuclear Operations, Technical Services and Nuclear Energy.
Earlier, in August 2010, The Babcock & Wilcox Company segregated from McDermott International Inc. ( MDR - Analyst Report) and began trading on the New York Stock Exchange under its present symbol.
Babcock & Wilcox currently retains a Zacks #3 Rank, which implies a Hold rating for a period of one to three months.