B&W Signs Deal for CCS Project - Analyst Blog
08 March 2013 - 11:30PM
Zacks
The Babcock & Wilcox
Company (BWC) – 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) 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) and
EnPro Industries Inc. (NPO) that offer value and
are worth considering. Both these stocks sport a Zacks Rank #1
(Strong Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis Report
BABCOCK&WILCOX (BWC): Free Stock Analysis Report
MCDERMOTT INTL (MDR): Free Stock Analysis Report
ENPRO INDUS INC (NPO): Free Stock Analysis Report
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