Coal

Babcock & Wilcox to supply TXU with $1 billion of coal power equipment

8 June 2006 — The Babcock & Wilcox Company (B&W), a subsidiary of McDermott International, Inc., has signed a memorandum of understanding (MOU) to supply eight identical supercritical coal-fired boilers and selective catalytic reduction (SCR) systems as part of TXU’s solid-fuel power generation program in Texas. The expected revenue from the full release of all purchase orders anticipated by the MOU exceeds $1 billion.

The eight boilers, each with a capacity of 858 MW, will be B&W supercritical Spiral Wound Universal Pressure (SWUP) units, the largest of this kind under construction in the United States to date. The units will burn Powder River Basin (PRB) coal. The SCR systems will be installed to reduce NOx emissions to below the levels required by federal and state environmental standards. B&W’s scope includes boiler pressure parts and auxiliary equipment such as pulverizers, sootblowers, fans and drives, flues and ducts and technical advisors for construction, commissioning and training.

The new boilers will be installed at the following TXU power stations in Texas: Big Brown (Freestone County), Lake Creek (McLennan County), Martin Lake (Rusk County), Monticello (Titus County), Morgan Creek (Mitchell County), Valley (Fannin County) and two at Tradinghouse (McLennan County).

The company said that design of the boilers is currently under way at B&W’s headquarters in Barberton. Babcock & Wilcox Beijing Company, B&W’s joint venture company in China, will provide a majority of the pressure part fabrication. B&W’s Diamond Power International, Inc. subsidiary will supply the sootblowers. Delivery of materials is scheduled to begin in 2007. The first unit is targeted to be online in the fall of 2009 with the rest online in sequence through mid-2010.