McDermott (NYSE:MDR)
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From Jul 2019 to Jul 2024
McDermott International, Inc. (NYSE:MDR) announced today that its
subsidiary, The Babcock & Wilcox Company (“B&W”),
has received a contract valued at more than $250 million from American
Electric Power (NYSE:AEP), for its Southwestern Electric Power Company (“SWEPCO”)
subsidiary, to design, supply and erect a 600-megawatt (“MW”)
net coal-fired boiler and environmental control equipment for Unit 1 at
the John W. Turk, Jr. Power Plant, a new baseload power plant in
Hempstead County, Ark., about 15 miles northeast of Texarkana, Ark.
The plant will burn Power River Basin coal and will feature advanced,
ultra-supercritical clean coal combustion technology. It will be one of
the first plants of its kind to go into operation in the U.S.
Ultra-supercritical generation is an efficient, pulverized coal
technology that requires less coal per megawatt and creates fewer
emissions than with a traditional, coal-fired unit. These units operate
at higher temperatures and pressures which increases overall plant
efficiency.
B&W's project scope includes the engineering, design, supply and
installation of a 600 MW net pulverized coal-fired spiral wound
universal pressure boiler, a selective catalytic reduction system, a dry
flue gas desulfurization system, pulse jet fabric filter and associated
auxiliary equipment.
Engineering has already begun at B&W’s
headquarters in Barberton, Ohio. All pressure parts will be fabricated
by B&W’s joint venture, Babcock & Wilcox
Beijing Company, Ltd., in China. Pending regulatory approval for the
plant, Babcock & Wilcox Construction Co., Inc. will begin construction
activities in 2008. The unit is scheduled for commercial operation by
the summer of 2011.
“AEP is a strong proponent of clean coal
technology as well as a long-term B&W customer, so we are extremely
pleased to be selected for this award,” said
Brandon Bethards, president of B&W’s
Fossil Power Group. “We appreciate AEP’s
confidence in our technology and in our project management and
construction capabilities, and we look forward to working with them to
bring this new plant online.”
American Electric Power is one of the largest electric utilities in the
United States, delivering electricity to more than five million
customers in 11 states. AEP ranks among the nation’s
largest generators of electricity, owning nearly 36,000 megawatts of
generating capacity in the U.S. Its SWEPCO subsidiary serves 454,000
customers in three states: 112,000 in western Arkansas, 174,000 in
Northwest Louisiana, and 168,000 in East Texas.
McDermott is an engineering and construction company, with specialty
manufacturing and service capabilities, focused on energy
infrastructure. McDermott’s customers are
predominantly utilities and other power generators, major and national
oil companies, and the United States Government. With its global
operations, McDermott operates in over 20 countries with more than
20,000 employees, and can be found on the internet at www.mcdermott.com.
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
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, among other things, the value, work scope and
timing associated with the John W. Turk, Jr. Power Plant. 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 based on various
underlying assumptions and are subject to numerous uncertainties and
risks, including without limitation change orders and other
modifications to contracts. 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, 2006 filed with the
Securities and Exchange Commission.