Babcock & Wilcox’s (B&W) thermal business segment has entered into an agreement to convert a coal power plant in North America to natural gas, the company announced in a March 18 press release.
Valued at approximately $246 million, the agreement provides B&W with a limited notice to proceed for the coal-to-natural gas project. Notice to proceed for the full contract is expected in fourth quarter 2024.
B&W will convert the plant’s 1,000-megawatt two coal-fired boilers to natural gas by designing and installing burners, air systems, fans and other equipment.
“Utilities across North America and throughout the world are evaluating options to extend the life of their thermal power generating assets,” said Chris Riker, senior vice president of B&W Thermal. “Replacing coal or oil with cleaner-burning fuels like natural gas, biofuels or hydrogen is often a cost-effective way for plant owners to lower emissions while maintaining reliable power generation capacity.”
Riker said B&W’s field construction experience and its subsidiary Babcock and Wilcox FPS Inc.’s specialized combustion equipment make B&W ideally suited for large fuel-switching projects.
The Babcock & Wilcox Co. will begin engineering and design work with support from FPS under the limited notice to proceed. Babcock & Wilcox Construction Co. LLC will begin the project’s construction under an intercompany agreement when a full notice to proceed is received.
Recommended Reading
Elk Range Royalties Makes Entry in Appalachia with Three-state Deal
2024-03-28 - NGP-backed Elk Range Royalties signed its first deal for mineral and royalty interests in Appalachia, including locations in Pennsylvania, Ohio and West Virginia.
Minerals Market Growing But Needs More Scale, Consolidation
2024-05-15 - The market value of public minerals and royalties companies has doubled since 2019—but the sector needs to grow even larger to attract generalist investors into the fray, experts say.
Sitio Closes D-J Basin Deal, Looks to Defragment Minerals Space
2024-05-09 - Sitio Royalties closed its acquisition of 13,062 net royalty acres. CEO Chris Conoscenti has a strong pipeline of minerals acquisition opportunities.
EQT, Equitrans Midstream to Combine in $5.5B Deal: Reports
2024-03-11 - EQT Corp.'s deal would reunite the natural gas E&P with Equitrans Midstream after the two companies separated in 2018.
Phoenix Capital Group Acquires Uinta Basin Royalty Interests
2024-04-29 - Phoenix Capital Group’s acquisition of 1,500 net royalty acres in Duchesne County, Utah, brings the company's investment in the Uinta Basin to more than $60 million, the company said.