Babcock & Wilcox Company
) - through its affiliate Babcock & Wilcox Power Generation
Group Inc. - entered into an agreement with FutureGen Industrial
Alliance to begin work on the U.S. Department of Energy's
FutureGen 2.0 carbon capture and storage (CCS) project. The
agreement is for initial engineering and preparation for full
front-end engineering and design work of the CCS project.
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The whole project is valued at $1.65 billion and the estimated
value of the engineering and design work is $130 million.
Per the deal, B&W will design the near-zero emissions plant's
oxy-coal combustion system, air quality control systems, boiler,
steel and other control systems.
The deal authorizes B&W and FutureGen Industrial Alliance to
start Phase II-A of the project for the 167 megawatt power plant
in Meredosia, Ill.
The primary aim of the FutureGen 2.0 project is to improve an
existing power plant located in Meredosia with B&W's oxy-coal
combustion process. This will separate and capture more than 90%
of the carbon dioxide (CO2) generated during the combustion
Headquartered in Charlotte, N.C, Babcock & Wilcox is engaged
in providing clean energy technology and services for the
nuclear, fossil and renewable power markets worldwide. The
company - which was spun off as a separate, independent and
publicly traded entity from energy-focused engineering and
) in Aug 2010 - operates in four business units: Power
Generation, Nuclear Operations, Technical Services and Nuclear
B&W currently carries a Zacks Rank #2 (Buy), implying that it
is expected to outperform the broader U.S. equity market over the
next 1 to 3 months.
In addition to B&W, there are other engineering firms in the
energy sector like
Altra Holdings Inc.
EnPro Industries Inc.
) that offer value and are worth considering. Both these stocks
sport a Zacks Rank #1 (Strong Buy).