State of West Virginia Agrees to Provide $10 Million for Development of Babcock & Wilcox BrightLoop™ Hydrogen and Carbon Capture Project

Rhea-AI Summary

Babcock & Wilcox (NYSE: BW) has secured up to $10 million in funding from the West Virginia Department of Economic Development for developing a BrightLoop™ hydrogen production and carbon capture facility in Mason County. The project, operated through subsidiary Mountaineer C2H, will utilize coal and biomass to produce low-carbon-emissions hydrogen.

The funding will be released in phases based on project milestones. The agreement requires B&W to complete the project by 2030 and create 28 full-time local jobs, plus additional construction-related positions. The facility will employ B&W's proprietary BrightLoop chemical looping technology, which uses iron-oxide TranspO2rt™ particles to produce hydrogen while capturing carbon emissions more efficiently and at a lower cost than other technologies.

Positive

• Secured $10 million in state funding for hydrogen production facility
• Project will create 28 full-time, high-paying local jobs plus construction positions
• Technology offers lower production costs per kilogram compared to alternatives
• Growing market demand for hydrogen across multiple sectors

Negative

• Project completion timeline extends to 2030
• Additional financing and equity partners still needed to complete the project

Insights

Financial Analyst

The $10 million state funding agreement marks a significant milestone for B&W's hydrogen initiatives, though it represents a modest portion of the likely total project cost. The performance-based structure, tied to specific milestones through 2030, reduces immediate financial risks. The commitment to create 28 full-time positions suggests a measured approach to operational scaling. While this development could strengthen B&W's position in the growing hydrogen market, investors should note that additional financing and equity partners are still needed to complete the project. The company's BrightLoop technology's potential for lower operational costs and broader fuel flexibility could provide a competitive advantage in the hydrogen production sector, particularly as industrial demand grows.

Energy Technology Expert

The BrightLoop technology represents a significant advancement in hydrogen production methodology. Its proprietary iron-oxide TranspO2rt particle system offers three key competitive advantages: lower energy input requirements, broader fuel compatibility including both solid and gaseous fuels and integrated carbon capture capabilities. The ability to utilize both coal and biomass feedstocks while maintaining low carbon intensity is particularly noteworthy, as it addresses both traditional and renewable energy transition demands. The technology's potential for lower production costs per kilogram of hydrogen could position B&W favorably in the rapidly expanding clean hydrogen market, especially in industrial applications where cost-effectiveness is crucial.

Environmental Policy Analyst

This project aligns with the growing trend of traditional energy states pivoting toward clean energy technologies while leveraging existing resources. The facility's dual capability to produce hydrogen while capturing carbon emissions represents a strategic approach to energy transition. West Virginia's support indicates increasing state-level commitment to low-carbon industrial development. The project's ability to utilize both coal and biomass feedstocks while maintaining low carbon intensity could serve as a model for other regions seeking to balance economic development with environmental goals. The carbon capture component adds significant value proposition in an increasingly carbon-conscious regulatory environment.

AKRON, Ohio--(BUSINESS WIRE)-- Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE: BW) announced today that one of its subsidiaries has signed an agreement for funding of up to $10 million from the West Virginia Department of Economic Development for the development of a BrightLoop^™ hydrogen production and carbon capture facility in Mason County, W. Va.

The memorandum of agreement between B&W’s wholly-owned Mountaineer C2H, LLC subsidiary and the state provides performance-based financial and economic development assistance for the development of a low-carbon-emissions hydrogen production facility that uses B&W’s BrightLoop chemical looping technology and is powered by coal and biomass. The $10 million in funding will be phased in upon achievement of project milestones.

"This is a tremendous win for West Virginia, Mason County, and our entire state,” West Virginia Governor Jim Justice said. “Babcock & Wilcox's decision to bring its technology and expertise here is a testament to our state's growing reputation as a hub for innovation and forward-thinking energy solutions. This investment not only creates jobs but also positions West Virginia to continue being the leader in the energy industry.”

“We are grateful to the state of West Virginia and the Department of Economic Development for their support of B&W’s cutting-edge energy technology that will utilize coal and biomass from West Virginia while simultaneously capturing and sequestering the CO₂ emissions to create low carbon intensity hydrogen,” said Jimmy Morgan, B&W Executive Vice President and Chief Operating Officer. “We’re seeing tremendous interest in our BrightLoop hydrogen production technology from potential customers and partners across the U.S. and globally, and we’re excited to begin development of this project in West Virginia as we pursue additional financing and equity partners to complete this project.”

“Demand for hydrogen is growing rapidly across many sectors, and we look forward to developing a facility that will have a major economic impact in West Virginia,” Morgan added. “The clean hydrogen generated by this project could be used for a variety of purposes, including power generation and industrial applications. B&W has a long history of energy projects in West Virginia and we are committed to further job growth to support these projects.”

“The total financial commitment by the State of West Virginia requires B&W to complete the project by 2030 and produce 28 full-time, high-paying local jobs. The project is also expected to result in numerous additional jobs for skilled laborers and craftspeople supporting construction,” Morgan said. “This is a true partnership with West Virginia and we’re excited to be a part of the energy transition and economic growth within the state.”

B&W's BrightLoop technology utilizes a proprietary iron-oxide TranspO₂rt^™ particle and produces hydrogen by splitting water molecules while simultaneously capturing carbon emissions more efficiently, at a lower cost per kilogram and with a wider range of fuels – including solid and gaseous fuels – than other technologies. The process reduces the amount of energy input needed to create hydrogen while doing so with a carbon-neutral or net-negative impact.

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 a memorandum of agreement for funding of up to $10 million from the West Virginia Department of Economic Development for the development of a BrightLoop hydrogen production and carbon capture facility. 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/20241210221555/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 funding did Babcock & Wilcox (BW) receive from West Virginia?

Babcock & Wilcox received up to $10 million in funding from the West Virginia Department of Economic Development for their BrightLoop hydrogen production facility in Mason County.

How many jobs will the BW BrightLoop facility create in West Virginia?

The project will create 28 full-time, high-paying local jobs, plus additional positions for skilled laborers and craftspeople during construction.

When is the BW BrightLoop facility in West Virginia expected to be completed?

The project is required to be completed by 2030 according to the agreement with the State of West Virginia.

What is unique about BW's BrightLoop hydrogen production technology?

BrightLoop technology uses proprietary iron-oxide TranspO2rt particles to produce hydrogen while capturing carbon emissions more efficiently and at a lower cost, working with both solid and gaseous fuels.