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Babcock & Wilcox Wins $205 Million Contract to Build Biomass Plant

Date: September 13, 2011

Source: The Babcock & Wilcox Company

Babcock & Wilcox Company (Charlotte, NC) has been awarded a contract worth more than $186 million to engineer and construct a 75-megawatt biomass power plant for Berlin Station, LLC in Berlin, N.H. B&W's subsidiary Delta Power Services, LLC won a separate $19 million six-year contract to operate the plant which is at the site of an idled Fraser Paper Mill.

Berlin Station, LLC was purchased by Cate Street Capital for $272.5 million from the project's developer Laidlaw Energy. The project initially encountered a number of barriers, including local opposition and petitions for intervention in its power purchase agreement (PPA) process. Earlier this year, a reorganization of the years-long project prompted a change of the name from Laidlaw Berlin BioPower LLC to Berlin Station. Cate Street won endorsement for the project from New Hampshire Gov. John Lynch who urged the Public Utilities Commission (PUC) to accept the PPAs agreed upon by Public Service New Hampshire (PSNH) and five of the six independent biomass power plants.

"Given the state of the energy market today, it has become difficult for small wood-fired plants to continue to operate without the stability of contracts to sell their power to a utility company," Gov. Lynch said in a statement. "The power purchase agreements address a short-term problem in a measured and responsible way. The petition and settlement agreement will also allow the Berlin Biopower project to go forward, which is an important step forward for economic development in Coos County."


PRESS RELEASE
September 13, 2011

B&W Awarded $205 Million in Renewable Energy Power Plant EPC and O&M Contracts

CHARLOTTE, N.C., Sep 13, 2011 (BUSINESS WIRE) -- The Babcock & Wilcox Company (B&W) announced today that Babcock & Wilcox Construction Co., Inc. (BWCC) has been awarded a contract worth more than $186 million to engineer, procure and construct (EPC) a biomass power plant for Berlin Station, LLC in Berlin, N.H. A subsidiary of Delta Power Services, LLC, a B&W company, has been awarded a separate six-year contract worth more than $19 million to provide operations and maintenance services (O&M) for the plant.

BWCC will lead a team that will convert the former Fraser Paper Mill to a 75 megawatt biomass energy power plant that will be fueled by wood chips and logging waste. BWCC's scope of work is to engineer, procure and construct the plant and all associated balance of plant support systems, including the turbine/generator and fuel handling equipment. BWCC will self-perform the erection of all B&W-supplied equipment.

BWCC and its affiliated companies will 1) design and supply material to convert the plant's existing black liquor recovery boiler to a bubbling fluidized bed (BFB) boiler; 2) design and supply the plant's selective catalytic reduction system for nitrogen oxides control, a baghouse for the control of particulates emissions, a continuous emissions monitoring system (CEMS) and other plant equipment; and 3) design and supply ash handling equipment.

"This project is a continuing confirmation of B&W's leadership position in technology, construction and project management in the renewable biomass energy market," Babcock & Wilcox Power Generation Group, Inc. President and Chief Operating Officer Richard L. Killion said.

Engineering for the project will begin immediately, and start-up is scheduled to begin in the fall of 2013.

About B&W

Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,000 people, in addition to approximately 10,000 joint venture employees. Learn more at www.babcock.com.

Cautionary Statement Regarding Forward Looking Statements

B&W cautions that this release contains forward-looking statements, including regarding the biomass power plant contracts. These statements are subject to risks and uncertainties, including delays and other difficulties executing on the EPC and O&M contracts. If these or other risks materialize, the actual results could be materially different than this expressed herein. For a discussion of risks relating to B&W, see our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. B&W cautions not to replace undue reliance on forward-looking statements, which speak only as of the date of this release. B&W disclaims any duty to update forward-looking information, except as required by law.

SOURCE: The Babcock & Wilcox Company

The Babcock & Wilcox Company
Media Contact:
Ryan Cornell, Public Relations Specialist, 330-860-1345
rscornell@babcock.com.
or
Investor Contact:
Michael P. Dickerson, Vice President and Investor Relations Officer, 704-625-4944
investors@babcock.com.

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