Babcock & Wilcox Receives Full Notice to Proceed on $246 Million Contract for Indiana Power Plant Coal-to-Gas Fuel-Switching Project
Babcock & Wilcox (NYSE: BW) has received full notice to proceed on a $246 million contract for converting AES Indiana's Petersburg Generating Station from coal to natural gas. The project involves converting two coal-fired boilers at the 1,160-megawatt plant, with B&W Thermal designing and installing the new natural gas system and air systems. The company's subsidiaries BWCC and FPS will handle construction and supply burners, ignitors, and controls respectively. The project, which began engineering earlier this year, is scheduled for completion in Q1 2027.
Babcock & Wilcox (NYSE: BW) ha ricevuto ufficialmente il via libera per un contratto del valore di 246 milioni di dollari per la conversione della centrale elettrica di AES Indiana a Petersburg, da carbone a gas naturale. Il progetto prevede la conversione di due caldaie a carbone presso l'impianto da 1.160 megawatt, con B&W Thermal responsabile della progettazione e dell'installazione del nuovo sistema a gas naturale e dei sistemi d'aria. Le filiali dell'azienda, BWCC e FPS, si occuperanno rispettivamente della costruzione e della fornitura di bruciatori, accenditori e controlli. Il progetto, che ha avviato l'ingegneria all'inizio di quest'anno, è previsto per il completamento nel primo trimestre del 2027.
Babcock & Wilcox (NYSE: BW) ha recibido el aviso para proceder con un contrato de 246 millones de dólares para convertir la Central Generadora de AES Indiana en Petersburg de carbón a gas natural. El proyecto implica la conversión de dos calderas de carbón en la planta de 1.160 megavatios, con B&W Thermal diseñando e instalando el nuevo sistema de gas natural y sistemas de aire. Las subsidiarias de la empresa, BWCC y FPS, se encargarán de la construcción y el suministro de quemadores, encendedores y controles respectivamente. El proyecto, que inició la ingeniería a principios de este año, está programado para completarse en el primer trimestre de 2027.
Babcock & Wilcox (NYSE: BW)는 AES 인디애나의 페터스버그 발전소를 석탄에서 천연 가스로 전환하는 2억 4,600만 달러 계약을 위한 정식 착수 통지를 받았습니다. 이 프로젝트는 1,160메가와트 규모의 발전소에서 두 개의 석탄 연료 보일러를 전환하는 것으로, B&W Thermal이 새로운 천연 가스 시스템과 공기 시스템의 설계 및 설치를 담당합니다. 이 회사의 자회사인 BWCC와 FPS가 각각 건설을 담당하고 버너, 점화기 및 제어 장치를 공급합니다. 이 프로젝트는 올해 초 엔지니어링을 시작했으며 2027년 1분기에 완료될 예정입니다.
Babcock & Wilcox (NYSE: BW) a reçu l'ordre de procéder à un contrat de 246 millions de dollars pour la conversion de la centrale électrique de Petersburg d'AES Indiana, passant du charbon au gaz naturel. Le projet implique la conversion de deux chaudières à charbon dans la centrale de 1 160 mégawatts, B&W Thermal étant chargé de la conception et de l'installation du nouveau système de gaz naturel et des systèmes d'air. Les filiales de l'entreprise, BWCC et FPS, s'occuperont respectivement de la construction et de la fourniture de bruleurs, d'allumeurs et de contrôles. Le projet, qui a débuté l'ingénierie plus tôt cette année, doit être achevé au premier trimestre 2027.
Babcock & Wilcox (NYSE: BW) hat die offizielle Genehmigung für einen Vertrag über 246 Millionen Dollar zur Umstellung des Petersburg-Kraftwerks von AES Indiana von Kohle auf Erdgas erhalten. Das Projekt umfasst die Umstellung von zwei kohlebefeuerten Kesseln in dem 1.160 Megawatt Kraftwerk, wobei B&W Thermal das Design und die Installation des neuen Erdgas- und Luftsystems übernimmt. Die Tochtergesellschaften BWCC und FPS werden jeweils den Bau übernehmen und Brenner, Zünder und Steuerungen liefern. Das Projekt, das Anfang dieses Jahres mit der Ingenieurausarbeitung begann, soll im 1. Quartal 2027 abgeschlossen werden.
- Secured large $246 million contract for coal-to-gas conversion project
- Project received full notice to proceed ahead of expected Q4 2024 timeline
- Multi-segment project leveraging different B&W business units
- None.
Insights
The
The contract provides substantial revenue visibility through Q1 2027, strengthening B&W's backlog and cash flow outlook. This positions the company well in the growing market for coal-to-gas conversion projects, as utilities face increasing pressure to reduce emissions. The project's size and complexity demonstrate B&W's competitive advantages in large-scale energy infrastructure transformations.
This coal-to-gas conversion project represents a significant milestone in the ongoing energy transition. Converting the 1,160-megawatt Petersburg plant will substantially reduce carbon emissions while maintaining grid reliability. The project's scope highlights the complex engineering challenges in fuel-switching projects, including new gas systems, air systems and advanced control technologies.
The accelerated timeline suggests growing urgency among utilities to decarbonize their generation fleet. This contract could serve as a blueprint for similar conversions across the U.S. utility sector, where approximately 200 coal-fired plants remain operational. The project's successful execution could position B&W for additional conversion opportunities in this expanding market.
B&W previously announced that it had received a limited notice to proceed for this project, with the full notice to proceed expected in the fourth quarter 2024. This project will help AES Indiana phase out the use of coal and reduce carbon dioxide emissions by converting the 1,160-megawatt
The B&W Thermal business will design and install the plant’s new natural gas system, air systems and other equipment while Babcock & Wilcox Construction Co., LLC, (BWCC) will perform the construction portion of the project. B&W subsidiary Babcock & Wilcox FPS, Inc. (FPS) will supply burners, ignitors, controls and other technologies for the project.
“We began engineering and design work earlier this year and are pleased to be moving forward with this important project for AES Indiana,” said Chris Riker, Senior Vice President, B&W Thermal. “We continue to see significant interest from utilities in the
“This large, complex project will be coordinated across several B&W business segments, including our B&W Thermal, BWCC and FPS businesses,” Riker said. “Our depth of knowledge and expertise allows us to smoothly and efficiently execute large, complex fuel-switching projects such as this.”
The project is scheduled for completion in the first quarter of 2027.
About Babcock & Wilcox
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Forward-Looking Statements
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to a contract and full notice to proceed with a coal-to-natural gas conversion project at AES Indiana’s Petersburg Generating Station. 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.
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Source: Babcock & Wilcox Enterprises, Inc.
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