Babcock and Wilcox supplying scrubbers at Michigan power plant

Houston, April 30, 2010 — Babcock and Wilcox Power Generation Group, signed a contract worth about $90 million to design, engineer, procure and construct wet flue gas desulfurization systems, commonly called scrubbers, for two 825 MW units at Detroit Edison Company’s Monroe Power Plant in Monroe, Michigan.

The value of this project will be included in McDermott’s Power Generation Systems segment backlog for the first quarter of 2010.

B&W’s full scope of supply includes the absorber island, piping, outlet flues and other associated equipment.

B&W also designed and installed scrubbers for the control of sulfur dioxide emissions on the Monroe plant’s two other units, which began successful operation last year.

The B&W contract is a component of Detroit Edison‘s overall FGD project, which is estimated to cost about $600 million and includes construction of a new 580-foot chimney, a building to house the absorber system, installation of control systems and construction of additional infrastructure.

“We’re committed to providing our customers with effective, economical solutions to comply with more stringent state and federal clean air standards,” said Richard L. Killion, President and Chief Operating Officer of Babcock and Wilcox Power Generation Group, Inc. “B&W has a reputation in the power generation industry as a leader in flue gas desulfurization and other important emissions control technologies, and we’re proud to offer products and services that live up to that reputation.”

Engineering is underway at B&W PGG’s Barberton, Ohio headquarters. Monroe Unit 1’s wet FGD system is scheduled for start-up in the fall of 2013. Unit 2 is scheduled for a spring 2014 start-up.

McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott’s customers are predominantly utilities and other power generators, major and national oil companies, and the U.S. government. With its global operations, McDermott operates in over 20 countries with more than 25,000 employees.


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