Babcock & Wilcox has signed an agreement valued at approximately $246 million for a coal-to-natural gas conversion project at an undisclosed customer’s power plant in North America.

Under the agreement, B&W has received limited notice to proceed (LNTP) for the project. Notice to proceed for the full contract is expected in the fourth quarter of 2024, the company said.

B&W will convert the currently unspecified plant’s two coal-fired boilers – totaling more than 1,000 MW – to use natural gas fuel. B&W’s full scope would include the design and installation of new burners, air systems, fans and other equipment necessary to implement the fuel switch.

“Utilities across North America and throughout the world are evaluating options to extend the life of their thermal power generating assets,” said Chris Riker, Senior Vice President, B&W Thermal. “Replacing coal or oil with cleaner-burning fuels like natural gas, biofuels or hydrogen is often a cost-effective way for plant owners to lower emissions while maintaining reliable power generation capacity.”

Babcock & Wilcox said it will begin engineering and design work under the LNTP immediately with support from its affiliate, FPS. Babcock & Wilcox Construction will perform the construction portion of the project under an intercompany agreement when a full notice to proceed is received.  

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