The Babcock & Wilcox Co. (NYSE:BWC) said June 4 that its subsidiary, Babcock & Wilcox Power Generation Group, has been awarded contracts valued at about $55m to design and supply equipment for Consumers Energy’s J.H. Campbell coal plant near West Olive, Mich.
B&W will supply four spray dry absorber (SDA) systems to control SO2 emissions for the 835-MW Campbell Unit 3. B&W also will supply a lime preparation system, ash handling systems and a B&W V-Temp economizer for the plant. In addition to supplying equipment, B&W will provide technical support services for engineering, procurement, construction and commissioning.
The Campbell projects are the most recent in a series of projects B&W is performing for Consumers Energy. Previously announced contracts include an environmental upgrade at the D.E. Karn coal plant in Michigan, a construction project at the Campbell plant, and the design and construction of a selective catalytic reduction system for the Campbell plant.
“As our customers work to comply with new federal emissions standards, we’re ready to meet their needs as a total environmental solutions provider,” said B&W PGG President and COO J. Randall Data. “We would like to thank Consumers Energy for choosing B&W to serve it on these important projects and look forward to continuing to provide valuable services for the utility’s power generation fleet.”
Consumers Energy parent CMS Energy (NYSE: CMS) estimated in its April 26 Form 10-Q report that Consumers will incur expenditures of $1.5bn from 2012 through 2018 to continue to comply with the Clean Air Act, Clean Water Act, and numerous state and federal environmental regulations. Presently, Consumers’ strategy to comply with various U.S. Environmental Protection Agency air rules involves the installation of state-of-the-art emission control equipment at some facilities and the suspension of operations at others.
Consumers has testified in a rate case filed in June 2011 at the Michigan Public Service Commission that in 2009 and 2010, it invested in SCR equipment at Campbell 2, as well as low NOx burners at Weadock 7 and 8. In the 2010-2012 period, Consumers Energy has or will invest in SCR and spray dry absorber (SDA) equipment at Campbell 1-3 and Karn 1-2. In the 2009–2011 period, pulse jet fabric filters (PJFF) and activated carbon injection (ACI) were installed on Karn Units 1-2. In 2010-2012, PJFF and ACI has been or will be installed on Campbell Units 1–3.
A Consumers witness testified in the rate case that to date, compliance with the Clean Air Interstate Rule (CAIR) has been achieved with previous installations of low NOx burners, SCR installed on Karn Units 1-2 and Campbell Unit 3 and increased use of low-sulfur coal. Consumers said that further reductions would be achieved with the installation and use of an SCR on Campbell Unit 2 and SDA on Karn Units 1-2 and Campbell Unit 3.