B&W Volund to Supply Environmentally Friendly Biomass Gasification Plants in Italy

BARBERTON, Ohio--(BUSINESS WIRE)--Denmark-based Babcock & Wilcox Vølund A/S (B&WV), a subsidiary of Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), is significantly growing the global reach of its renewable power generation technology. The company has signed an agreement potentially worth up to €100 million (U.S. $156 million) to supply biomass plants that use its combined cycle gasification (CCG) technology to Advanced Renewable Energy Ltd. (ARE) in Italy.

Under the terms of the 10-year agreement, B&WV will be the exclusive supplier to ARE using CCG technology in as many as 25 small-scale, biomass-fueled power plants. B&W Vølund anticipates orders for six plants in 2008, with the first scheduled for commercial operation in the first quarter of 2010. B&WV has previously licensed its gasification technology in Japan and continues to pursue licensing opportunities around the world.

Each of the power plants, to be built in Italy, will be designed to produce 4-megawatts (MW) of electricity using wood chip biomass to produce gas fuel for engines that will drive electric generators. Heat in the flue gas produced during the combustion process will be recovered in a heat recovery boiler, producing steam to drive a steam turbine/generator and allowing the plant to operate at an electrical efficiency of approximately 45 percent. This is nearly double the electrical efficiency of a traditional, small biomass plant in Europe.

Italy’s rapidly growing forest products industry will provide an abundant supply of wood chips to produce the plants’ fuel.

Additionally, the Italian Environmental and Energy Authorities issue “Green Certificates” to companies using environmentally friendly technologies such as biomass CCG, thereby reducing utilities’ power costs and increasing the potential market for this technology.

“B&W is a leader in providing environmentally-friendly technologies that allow customers to use renewable organic matter such as wood and agricultural wastes to create power,” said Brandon Bethards, B&W PGG President. “Through this agreement with ARE, B&W will continue to expand the reach of its innovative combined cycle gasification technology -- one that provides a cost-effective solution for small, renewable-fired power plants in Europe and around the world.”

Advanced Renewable Energy Ltd., of Calabria, Italy, is a member of the Baltic Energy Group and its partners. Baltic Energy Group is one of the leading independent developers of renewable energy in Italy.

Babcock & Wilcox Vølund A/S is a subsidiary of Babcock & Wilcox Power Generation Group, Inc. (B&W PGG). B&W PGG is a major operating unit of The Babcock & Wilcox Company, a wholly owned subsidiary of McDermott International, Inc. B&W PGG is a world leader in the power generation industry and designs, engineers, manufactures, services and constructs steam generating and environmental equipment for utilities and industries worldwide. It is located on the Internet at www.babcock.com.

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