B&W receives full notice to proceed on Florida waste-to-energy plant

The Babcock & Wilcox Co. (NYSE:BWC) announced that its subsidiary Babcock & Wilcox Power Generation Group Inc. has received full notice to proceed (FNTP) for the engineering, design, procurement and construction of a waste-to-energy power plant and environmental control equipment for the Solid Waste Authority (SWA) of Palm Beach County in West Palm Beach, Fla.

B&W and its consortium partner, KBR, were awarded a $668 million contract for the design and construction of the 95 megawatt Renewable Energy Facility No. 2 in April 2011. Since that time, B&W had been performing engineering and design work under a limited notice to proceed.

With the receipt of this FNTP, B&W recorded in the first quarter of 2012 an additional $178 million in backlog, representing the remaining portion of B&W’s design and build scope, as well as approximately $498 million for a 20-year operations and maintenance contract.

“B&W has been working diligently with its consortium partner and its customer to make the SWA’s waste-to-energy project a success,” B&W PGG President and Chief Operating Officer J. Randall Data said. “This notice from the SWA is welcome news and allows us to continue our work on this important project.”

The new waste-to-energy facility will be located adjacent to the SWA’s existing plant, Renewable Energy Facility No. 1, and will be capable of processing 3,000 tons of municipal solid waste per day to produce electricity and significantly reduce the amount of waste sent to the county’s landfill. The plant is scheduled to begin commercial operation in spring 2015.