1. Babcock & Wilcox awarded a $40 million contract for Wet Gas Scrubbing technology. 2. This is an additional $30 million contract following a previous $10 million order. 3. The technology helps refiners control sulfur dioxide emissions and meet regulations. 4. B&W's WGS systems offer high efficiency and low energy consumption. 5. The contract reflects customer confidence in B&W's environmental solutions.
FAQ
Why Bullish?
The contract increase indicates robust customer demand and growth potential, similar to past contracts boosting stock value.
How important is it?
The contract's value and strategic importance for emissions solutions denote significant potential for revenue and stock appreciation.
Why Short Term?
Immediate revenue boost expected from the announced contract, as seen with other recent contracts.
Babcock & Wilcox (B&W) (NYSE:BW) announced today that it has been awarded a $40 million contract to supply advanced low-pressure Wet Gas Scrubbing (WGS) technology for installation at a major petroleum refinery in Canada. This award represents an additional $30 million commitment from the customer, following an initial $10 million order announced in September.
The project is a significant milestone for B&W, as it continues growing its business of providing advanced environmental solutions for the North American refining industry. B&W's proven WGS solution controls sulfur dioxide (SO₂) emissions from fluid catalytic cracking and fluid coker units, helping refiners meet stringent environmental regulations. The technology can also be enhanced to address nitrogen oxides (NOₓ) and particulate emissions, providing a comprehensive approach to emissions compliance.
B&W is a licensee of ExxonMobil's WGS technology, which has been successfully deployed in dozens of refinery applications around the world. The company's WGS systems offer several advantages, including high SO₂ removal efficiency with low-pressure operation for reduced energy consumption, customizable designs to accommodate challenging site layouts and integration with NOₓ and particulate control technologies for comprehensive compliance.
"This contract underscores the confidence our customers have in B&W's ability to deliver complex environmental solutions on time and on budget," said Justin Chenevey, Vice President, Environmental and ClimateBright, B&W. "Our wet gas scrubbing technology combines ExxonMobil's proven process with B&W's engineering expertise and procurement to provide exceptional reliability, efficiency, and flexibility for refineries facing increasingly strict emissions standards."
About B&W
Headquartered in Akron, Ohio, B&W is a global leader in energy and environmental technologies and services for the power and industrial markets. Follow B&W on LinkedIn and learn more at www.babcock.com.
Forward-Looking Statements
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to a contract to provide Wet Gas Scrubbing technology for a refinery in Canada. 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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