B&W Awarded Environmental Equipment Contract for AEP'S Amos Plant in West Virginia
November 04 2005 - 12:03PM
Business Wire
McDermott International, Inc. (NYSE:MDR) ("McDermott") announced
today that its deconsolidated subsidiary The Babcock & Wilcox
Company ("B&W") has been awarded a contract valued well in
excess of $100 million to supply and construct wet flue gas
desulfurization ("WFGD") systems at the John E. Amos power plant in
St. Albans, W. Va. The plant is owned and operated by Appalachian
Power Company, a unit of American Electric Power ("AEP"). B&W
will design and install the sulfur dioxide (SO2)-reducing
equipment, also known as scrubbers, on the plant's three boilers:
Units 1 and 2 are 800 MW each, and Unit 3 is 1,300 MW. At a total
of 2,900 MW, the Amos Plant is the largest power plant on the AEP
system and one of the largest coal-fired plants in the world. Units
1, 2 and 3 -- started up in 1971, 1972 and 1973, respectively --
are supercritical, dry-bottom boilers powered by a blend of
low-sulfur coal and Northern Appalachian Basin high-sulfur coal.
B&W's WFGD systems are designed to reduce SO2 emissions. "Since
our first scrubber installation in 1973, we have supplied WFGD
systems for nearly 90 units totaling more than 53,000 MW," said
B&W President David L. Keller. "We value the confidence AEP
places in our experience, the operating record of our equipment and
in our ability to help the Amos plant team meet critical air
quality objectives." The contract calls for the supply of two
absorber islands, single absorber towers for Units 1 and 2 that
each measure 68.5 feet in diameter and more than 159 feet high, and
two absorber towers for Unit 3 that measure 61 feet in diameter and
153 feet high. Also included are three limestone ball mills with
silos and classifiers, associated tanks, agitators and pumps for
the reagent preparation island; three horizontal vacuum belt filter
dewatering trains and associated hydroclones, tanks, agitators and
pumps for the dewatering island; and absorber oxidation air
compressors, absorber recycle system and tanks, agitators and pumps
for the towers. Design and engineering for the three WFGD systems
are currently underway at B&W's headquarters in Barberton.
B&W subsidiary Babcock & Wilcox Construction Co., Inc.,
will erect the equipment. Unit 3 is scheduled to be completed by
the end of 2007, and Units 1 and 2 are scheduled to go online by
the end of 2008. Headquartered in Charleston, W. Va., Appalachian
Power serves 929,000 customers in West Virginia, Virginia and
Tennessee. Appalachian Power is part of the American Electric Power
system, which owns more than 36,000 megawatts of generating
capacity in the United States and is the nation's largest
electricity generator. Based in Columbus, Ohio, AEP is also one of
the largest electric utilities in the United States, with more than
five million customers linked to its 11-state electricity
transmission and distribution grid. The Babcock & Wilcox
Company, headquartered in Barberton, Ohio, USA, and located on the
Internet at www.babcock.com, is a subsidiary of McDermott
International, Inc. McDermott is a leading worldwide energy
services company. McDermott's subsidiaries provide engineering,
fabrication, installation, procurement, research, manufacturing,
environmental systems, project management and facilities management
services to a variety of customers in the energy industry,
including the U.S. Department of Energy. In accordance with the
Safe Harbor provisions of the Private Securities Litigation Reform
Act of 1995, McDermott International, Inc. cautions that statements
in this press release which are forward-looking and which provide
other than historical information, involve risks and uncertainties
that may impact McDermott's actual results of operations. The
forward-looking statements in this press release include statements
related to the dollar value of the AEP contract and the expected
work scope of the AEP contract. Although McDermott's management
believes that the expectations reflected in those forward-looking
statements are reasonable, McDermott can give no assurance that
those expectations will prove to have been correct. Those
statements are made by using various underlying assumptions and are
subject to numerous uncertainties and risks including, without
limitation, that the AEP contract may not be completed on the terms
or within time frame described as a result of changes to the
contract and other factors. If one or more of these risks
materialize, or if underlying assumptions prove incorrect, actual
results may vary materially from those expected. For a more
complete discussion of these risk factors, please see McDermott's
annual report on Form 10-K for the year ended December 31, 2004 and
its reports on Form 10-Q which are filed quarterly.
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