Babcock & Wilcox Signs Agreement for Power Plant Fuel-Switching Project Valued at Approximately $246 Million

• B&W has received limited notice to proceed on coal-to-natural gas conversion project for North American power plant
• Company sees strong operating momentum in 2024 led by Thermal and Environmental business segments, with new bookings and stronger financial performance expected across all segments

Babcock & Wilcox (B&W) (NYSE: BW) announced today that its B&W Thermal business segment has signed an agreement valued at approximately $246 million for a gas conversion project for a power plant in North America. Under the agreement, B&W has received limited notice to proceed (LNTP) for the coal-to-natural gas project. Notice to proceed for the full contract is anticipated in the fourth quarter of 2024.

B&W will convert the plant’s two coal-fired boilers – totaling more than 1,000 megawatts – 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.”

“B&W’s extensive field construction experience and advanced technologies – such as specialized combustion equipment supplied by our Babcock & Wilcox FPS, Inc. (FPS) subsidiary – are ideally suited for large fuel-switching projects,” Riker added. “This project demonstrates the strength of our Thermal business as we leverage our broad capabilities to help utilities maintain adequate energy supply for their customers amid a continuing increase in demand for power.”

“This is a major agreement that reflects the strength and performance of our technology and our leadership role in the energy transition on several fronts,” said Kenneth Young, B&W’s Chairman and Chief Executive Officer. “Our acquisition of FPS places us in a unique role to provide turn-key services for gas conversion projects. We are executing on our growth plan with a healthy demand and extensive pipeline across our business. We anticipate the year ahead to be a robust period for our company with solid bookings and stronger financial performance across all of our segments.”

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

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to a limited notice to proceed, and an anticipated full notice to proceed, in connection with a fuel switching project at a power plant in North America. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

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