The Babcock & Wilcox Co. (NYSE: BWC) said Aug. 20 that subsidiary Babcock & Wilcox Power Generation Group (B&W PGG) has been awarded a contract to design and supply FM water tube package boilers to Black & Veatch for a project at a manufacturing facility in Virginia.
Each FM water tube package boiler will supply steam for power generation and industrial processes at Celanese Corp.’s (NYSE: CE) manufacturing facility in Narrows, Va. The dual fuel boilers, which can operate using either natural gas or oil, will replace coal-fired units currently used at the plant.
“B&W PGG’s FM water tube package boilers are a reliable and low-cost-of-operation solution for industrial, commercial and utility applications,” said B&W PGG President and Chief Operating Officer J. Randall Data. “We appreciate the opportunity to work with Black & Veatch and Celanese on this project.”
Boiler components will be manufactured in B&W PGG’s West Point, Miss. facility. Material delivery is scheduled for April 2014.
Celanese will invest $150m in its Giles County, Va., operation to replace its coal-fired boilers with natural gas-fired boilers, said an October 2012 announcement from the state of Virgina. Narrows is in Giles County. The project, in conjunction with other efforts at the site, will enable creation of at least 22 full-time Celanese positions and will require about 200 construction workers, said an announcement from Virginia Gov. Bob McDonnell. Celanese manufactures cellulose acetate tow, which is derived from wood pulp, at the plant.
“Celanese is one of the largest employers and offers some of the best-paying jobs in the region,” McDonnell said at the time. “Converting the Giles County facility to natural gas demonstrates that the company is really investing in the future of the operation. This tremendous investment will allow the plant to improve its energy production capability, while positioning Celanese for profitable growth and job creation in the years ahead.”