CHARLOTTE, N.C.--(BUSINESS WIRE)-- The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has received full notice to proceed (FNTP) for the engineering, design, procurement and construction of a waste-to-energy power plant and environmental control equipment for the Solid Waste Authority (SWA) of Palm Beach County in West Palm Beach, Fla.
B&W and its consortium partner, KBR, were awarded a $668 million contract for the design and construction of the 95 megawatt Renewable Energy Facility No. 2 in April 2011. Since that time, B&W had been performing engineering and design work under a limited notice to proceed. With the receipt of this FNTP, B&W recorded in the first quarter of 2012 an additional $178 million in backlog, representing the remaining portion of B&W’s design and build scope, as well as approximately $498 million for a 20-year operations and maintenance contract.
“B&W has been working diligently with its consortium partner and its customer to make the SWA’s waste-to-energy project a success,” B&W PGG President and Chief Operating Officer J. Randall Data said. “This notice from the SWA is welcome news and allows us to continue our work on this important project.”
The new waste-to-energy facility will be located adjacent to the SWA’s existing plant, Renewable Energy Facility No. 1, and 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 plant is scheduled to begin commercial operation in spring 2015.
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 12,700 people, in addition to approximately 10,400 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 backlog, to the extent backlog may be viewed as an indicator of future revenues; the value, scope and timing associated with the contracts; and the location and capabilities of the new waste-to-energy facility.These forward-looking statements involve a number of risks and uncertainties, including, among other things, delays or other difficulties in executing contracts and adverse modifications to contracts in backlog, 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, 2011.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.