Babcock & Wilcox Enterprises Inc BW said its B&W Thermal business segment has signed an agreement valued at about $246 million for a gas conversion project for a power plant in North America.
Under the agreement, B&W has received limited notice to proceed (LNTP) for the coal-to-natural gas project.
Notice to proceed for the full contract is anticipated in the fourth quarter of 2024.
The company will convert the plant’s two coal-fired boilers totaling more than 1,000 megawatts to use natural gas fuel.
B&W’s contract would include the design and installation of new burners, air systems, fans and other equipment necessary to implement the fuel switch.
“This is a major agreement that reflects the strength and performance of our technology and our leadership role in the energy transition on several fronts,” said Chairman and CEO Kenneth Young.
Babcock & Wilcox Construction Co., LLC, will perform the construction portion of the project.
The company said it sees solid operating momentum in 2024 led by the Thermal and Environmental business segments, with new bookings and stronger financial performance expected across all segments.
Price Action: BW shares are trading higher by 9.10% at $1.08 in premarket on the last check Monday.
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