Babcock & Wilcox Awarded Contract to Upgrade Renewable Energy Boilers in Southeast Asia

Rhea-AI Summary

Babcock & Wilcox (BW) has been awarded a $7 million contract to upgrade waste-fueled boilers in Southeast Asia, based on a successful FEED study. The project aims to increase steam production capacity, efficiency, and reduce emissions, showcasing BW's expertise in the renewable energy sector.

Positive

• Babcock & Wilcox (BW) awarded a $7 million contract to upgrade boilers in Southeast Asia
• Upgrade project based on successful Front-End Engineering Design (FEED) study by BW Renewable Service
• New pressure parts, water-cooled wear zones, and other equipment to enhance plant efficiency and reduce emissions
• BW Renewable Service to provide advisory services during construction and commissioning processes
• BW's expertise in waste-to-energy and biomass maintenance highlighted in the project

Negative

• None.

Insights

Energy Sector Analyst

Babcock & Wilcox's new contract in Southeast Asia reflects a growing trend in the energy industry, where there is increasing focus on renewable sources and the efficiency of energy utilization. The waste-to-energy sector, in particular, is seeing accelerated growth due to its dual benefits of managing waste and producing energy. From an investment perspective, this contract signifies B&W's strength in the renewable energy market, suggesting potential for revenue growth.

However, investors should consider the operational risks associated with international projects, such as local regulatory changes, currency fluctuations and execution challenges. The success of such projects could influence future contracts and partnerships in the region, solidifying B&W's market position. Evaluation of B&W's past performance on similar projects could provide further insight into the potential success of this contract.

Environmental Compliance Specialist

The upgrade work by B&W Renewable Service is not just about enhancing efficiency but also aligns with a global push towards reduced emissions. The environmental regulations in Southeast Asia are increasingly stringent. This project could serve as a benchmark for B&W's compliance capabilities, potentially positioning the company as a preferred partner for future eco-friendly initiatives. The improvements in combustion equipment and emission reduction are integral for B&W to stay competitive and relevant in markets that are closely monitoring environmental impact.

Analyzing the long-term environmental benefits against the upfront costs will be key for investors. While the initial investment is substantial, the reduction in emissions and the improvement in efficiency can lead to operational cost savings and potential government incentives, which could improve profitability in the long run.

AKRON, Ohio--(BUSINESS WIRE)--

Babcock & Wilcox (B&W) (NYSE: BW) announced today that its Babcock & Wilcox Renewable Service A/S (B&W Renewable Service) subsidiary has been awarded a contract valued at more than $7 million to upgrade three municipal and commercial waste-fueled boilers and combustion equipment at a waste-to-energy power plant in Southeast Asia.

The contract was awarded based on the results of B&W Renewable Service’s Front-End Engineering Design (FEED) study in 2023.

B&W Renewable Service will supply new pressure parts, water-cooled wear zones, water soot cleaning equipment, a secondary air system and related equipment to increase the plant’s steam production capacity and efficiency, while also reducing emissions. B&W Renewable Service also will advise the customer during the construction and commissioning processes.

“We’re pleased B&W Renewable Service has been selected for this critical infrastructure upgrade project,” said B&W Chief Operating Officer Jimmy Morgan. “There is a robust market for waste-to-energy and biomass maintenance and upgrade services in Southeast Asia as customers look to keep plants running longer while also operating more efficiently. Our experienced team has the depth of knowledge and expertise to help customers change and update their facilities as technologies and their needs change.”

B&W Renewable Service provides a broad range of world-class upgrade, maintenance, start-up and commissioning, environmental compliance and other services for biomass and waste-to-energy power and industrial plants, as well as replacement parts for these facilities.

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the receipt of a contract to upgrade boilers and combustion equipment at a waste-to-energy facility in Southeast Asia. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240415731897/en/

Investor Contact:

Investor Relations

Babcock & Wilcox

704.625.4944

investors@babcock.com



Media Contact:

Ryan Cornell

Public Relations

Babcock & Wilcox

330.860.1345

rscornell@babcock.com

Source: Babcock & Wilcox Enterprises, Inc.

FAQ

What contract was Babcock & Wilcox (BW) awarded recently?

BW was awarded a contract valued at more than $7 million to upgrade waste-fueled boilers in Southeast Asia.

What is the purpose of the upgrade project in Southeast Asia?

The project aims to increase the plant's steam production capacity and efficiency, while reducing emissions.

What services does BW Renewable Service provide for biomass and waste-to-energy plants?

BW Renewable Service offers upgrade, maintenance, start-up, commissioning, environmental compliance, and replacement parts services for biomass and waste-to-energy plants.

Who will advise the customer during the construction and commissioning processes of the project?

BW Renewable Service will provide advisory services during the construction and commissioning processes.

What market opportunities exist for waste-to-energy and biomass maintenance services in Southeast Asia?

There is a robust market for waste-to-energy and biomass maintenance and upgrade services in Southeast Asia as customers aim to run plants longer and more efficiently.