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McDermott’s Subsidiary Signs Scrubber Supply Contract with Detroit Edison

McDermott International, Inc. (NYSE: MDR) (“McDermott”), announced today that one of its subsidiaries, Babcock & Wilcox Power Generation Group, Inc. (“B&W”), has signed a contract worth approximately $90 million to design, engineer, procure and construct wet flue gas desulfurization (“FGD”) systems, commonly called scrubbers, for two 825 megawatt units at Detroit Edison Company’s Monroe Power Plant in Monroe, Michigan. The value of this project will be included in McDermott’s Power Generation Systems segment backlog for the first quarter of 2010.

B&W's full scope of supply includes the absorber island, piping, outlet flues and other associated equipment. B&W also designed and installed scrubbers for the control of sulfur dioxide emissions on the Monroe plant’s two other units, which began successful operation last year. The B&W contract is a component of Detroit Edison’s overall FGD project, which is estimated to cost about $600 million and includes construction of a new 580-foot chimney, a building to house the absorber system, installation of control systems and construction of additional infrastructure.

“We’re committed to providing our customers with effective, economical solutions to comply with more stringent state and federal clean air standards,” said Richard L. Killion, President and Chief Operating Officer of Babcock & Wilcox Power Generation Group, Inc. (“PGG”). “B&W has a reputation in the power generation industry as a leader in flue gas desulfurization and other important emissions control technologies, and we’re proud to offer products and services that live up to that reputation.”

Engineering is underway at B&W PGG’s Barberton, Ohio headquarters. Monroe Unit 1’s wet FGD system is scheduled for start-up in the fall of 2013. Unit 2 is scheduled for a spring 2014 start-up.

Source: http://www.mcdermott.com/

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