Leading clean energy technology and services provider,
Babcock & Wilcox Co.
) announced the sanction of additional $20.5 million to its
subsidiary, Babcock & Wilcox mPower, Inc. (B&W mPower),
by the U.S. Department of Energy (DOE). The unit got the sanction
under the cooperative agreement signed by the parties in Apr
Per the agreement, the funds will be available through DOE's
Small Modular Reactor (SMR) Licensing Technical Support Program
for the development and licensing of B&W's mPower technology.
Upon signing the agreement, B&W's mPower had received $79
million. A consideration of approximately $2 million has been
paid to national laboratories to facilitate analysis and
evaluation of the project. With the current allocation of $20.5
million, DOE's total investment in the initial phase has reached
Subject to approval from the Congress and B&W mPower's
acceptance of the agreement terms, DOE intends to add funding to
this five-year agreement. This move indicates the U.S.
Government's intention to commercialize SMR technology. B&W
mPower appreciates DOE's support and expects to begin operations
in its Clinch River Plant near Oak Ridge by 2022.
The cooperative deal established B&W's cost-share agreement
with the DOE, after the mPower American team won the DOE's
funding award. The team comprised Babcock & Wilcox (B&W),
the Tennessee Valley Authority and Generation mPower.
The Babcock & Wilcox mPower reactor, designed with advanced
technologies, is a pressurized water reactor expected to generate
180MW of energy.
Charlotte, N.C.-based Babcock & Wilcox currently holds a
Zacks Rank #3 (Hold), implying that it is expected to perform in
line with the broader U.S. equity market over the next one to
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Meanwhile, one can look at other stocks in energy sector such as
Seacor Holdings Inc.
Magellan Midstream Partners LP
). All these stocks currently sport a Zacks Rank #1 (Strong Buy).