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B&W Awarded Contract to Supply and Construct Environmental Control Equipment

McDermott InternationalMcDermott International's subsidiary, The Babcock & Wilcox Company ("B&W"), has received a contract for engineering, materials, construction, start-up and commissioning of environmental equipment at Allegheny Energy's Fort Martin Power Station near Maidsville, West Virginia.

For its share of the plant's total $550 million project, B&W will perform work on Fort Martin's two 550-megawatt supercritical coal-fired boilers - Unit 1, started up in 1967, and Unit 2, originally supplied by B&W in 1968. B&W will supply wet flue-gas desulfurization ("WFGD") systems, commonly called scrubbers, for each unit including absorber areas and a common reagent preparation and dewatering system.

B&W's advanced WFGD systems operate by mixing a limestone slurry (reagent) with flue gas generated from the combustion of fossil fuel in large steam generators. B&W's WFGD system features include B&W's uniquely designed absorber module and B&W's patented flue gas distribution tray, which in combination are capable of achieving greater than 95 percent sulfur dioxide ("SO2") removal from plant emissions.

"B&W has a long-standing reputation as a leader in generating proven, reliable environmental solutions for the power industry," said Brandon C. Bethards, president of B&W's Fossil Power Group. "We've had a presence at the Fort Martin plant from its beginning, and this new order represents this customer's continued trust in B&W's technology and capabilities."

Engineering for the project is underway at B&W's Barberton headquarters. Mechanical completion of the units is slated for early spring of 2009, with start-up scheduled for the early fall of 2009.

B&W is also performing similar work at Allegheny Energy's Hatfield's Ferry Power Station, located in Masontown, Pennsylvania. The WFGD systems being installed on Hatfield's Ferry's three units are on schedule for completion in fall 2008.

Headquartered in Greensburg, Pennsylvania, Allegheny Energy is an investor-owned electric utility with total annual revenues of over $3 billion and more than 4,000 employees. The company owns and operates generating facilities and delivers low-cost, reliable electric service to over 1.5 million customers in Pennsylvania, West Virginia, Maryland and Virginia.

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