Babcock & Wilcox Receives Full Notice to Proceed on $246 Million Contract for Indiana Power Plant Coal to Gas Fuel Switching Project

(AKRON, Ohio - November 14, 2024) - Babcock & Wilcox (B&W) (NYSE: BW) announced today that its B&W Thermal business segment has received full notice to proceed under an agreement for a coal-to-natural gas conversion project at AES Indiana's Petersburg Generating Station valued at approximately $246 million.

B&W previously announced that it had received a limited notice to proceed for this project, with the full notice to proceed expected in the fourth quarter 2024. This project will help AES Indiana phase out the use of coal and reduce carbon dioxide emissions by converting the 1,160-megawatt Petersburg plant's two coal-fired boilers to use natural gas as fuel.

The B&W Thermal business will design and install the plant's new natural gas system, air systems and other equipment while Babcock & Wilcox Construction Co., LLC, (BWCC) will perform the construction portion of the project. B&W subsidiary Babcock & Wilcox FPS, Inc. (FPS) will supply burners, ignitors, controls and other technologies for the project.

"We began engineering and design work earlier this year and are pleased to be moving forward with this important project for AES Indiana," said Chris Riker, Senior Vice President, B&W Thermal. "We continue to see significant interest from utilities in the U.S. and elsewhere that want to switch from coal to cleaner fuels, such as natural gas, to significantly reduce greenhouse gas emissions and the overall environmental impact of their generating assets."

"This large, complex project will be coordinated across several B&W business segments, including our B&W Thermal, BWCC and FPS businesses," Riker said. "Our depth of knowledge and expertise allows us to smoothly and efficiently execute large, complex fuel-switching projects such as this."

The project is scheduled for completion in the first quarter of 2027.

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 contract and full notice to proceed with a coal-to-natural gas conversion project at AES Indiana's Petersburg Generating Station. 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.