B&W mPower Gets Additional Funds - Analyst Blog


Leading clean energy technology and services provider, Babcock & Wilcox Co. ( BWC ) 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 2013.

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 $101 million.

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 three months.

Meanwhile, one can look at other stocks in energy sector such as Seacor Holdings Inc. ( CKH ), Magellan Midstream Partners LP ( MMP ) and Dril-Quip, Inc. ( DRQ ). All these stocks currently sport a Zacks Rank #1 (Strong Buy).

BABCOCK&WILCOX (BWC): Free Stock Analysis Report

SEACOR HLDGS (CKH): Get Free Report

DRIL-QUIP INC (DRQ): Free Stock Analysis Report

MAGELLAN MDSTRM (MMP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BWC , CKH , DRQ , MMP



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