The Babcock & Wilcox Company Awarded Environmental Equipment Orders

    Business Editors

    BARBERTON, Ohio--(BUSINESS WIRE)--Jan. 25, 2005--The Babcock & Wilcox Company (B&W), a subsidiary of McDermott International, Inc. (NYSE:MDR), has contracted with Cinergy to design, engineer, procure and construct environmental equipment at three Cinergy operating company plants. Total value of work, which is being awarded separately for each unit at the three plants, is expected to reach $330 million.
    Subject to the individual releases per unit, B&W's work will include the supply and erection of wet flue gas desulfurization (WFGD) units, commonly known as scrubbers, for Units 1, 2 and 3 at PSI Energy's (PSI) Gibson Station in Owensville, Ind.; Units 1 and 2 at PSI's Cayuga Station in Cayuga, Ind.; and Units 7 and 8 at Cincinnati Gas & Electric Company's (CG&E) Miami Fort Station in North Bend, Ohio.
    The project scope includes the design and supply of a WFGD system consisting of absorber, outlet flues, reagent preparation and dewatering systems, structural steel, heating, ventilation and air conditioning (HVAC), and architectural for the absorber and reagent preparation and dewatering buildings, piping, valves, instruments, engineering and material supply for the systems.
    The scrubbers are being designed to reduce sulfur dioxide from the plants' emissions. The Gibson units are 650 MW coal-fired boilers, while the Cayuga and Miami Fort units are approximate 530 MW coal-fired boilers. All seven boilers currently burn Eastern bituminous coal.
    B&W's advanced WFGD systems operate by mixing a limestone slurry with gases generated in the associated boiler. This effectively removes sulfur dioxide from the emissions and creates a gypsum byproduct that can be used for a variety of industrial purposes including wallboard.
    Design and engineering for the scrubber units are underway at B&W's headquarters in Barberton, Ohio. Construction will be performed by Babcock & Wilcox Construction Co., Inc. More than 1,000 jobs will be provided at the job sites during peak construction.
    Start-up dates for the scrubber units are currently scheduled, ranging from fall 2006 through the fall of 2008.
    "These contracts show the significant investment our customers are making in environmental control technologies to reduce emissions from their plants," said David L. Keller, B&W president and chief operating officer. "They also demonstrate B&W's continued leadership in the design and supply of environmental equipment to the power industry."
    "We have worked with Cinergy and its operating companies for many years to reduce emissions from their plants and assist them in providing reliable, low-cost energy to the communities and industries they serve," Keller continued. "We are pleased to have this opportunity to team with them yet again, and to work together for many years into the future."
    Cinergy has B&W scrubbers at its East Bend, Zimmer, and Gibson 4 units, as well as numerous B&W boilers throughout its system.
    PSI and CG&E are operating companies of Cinergy Corp. Cinergy has a balanced, integrated portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy's regulated public utilities in Ohio, Indiana, and Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated company owns 7,000 megawatts of generation. Cinergy's competitive commercial businesses have 6,300 megawatts of generating capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. Cinergy's integrated businesses make it a Midwest leader in providing both low-cost generation and reliable electric and gas service.
    The Babcock & Wilcox Company is a subsidiary of McDermott International, Inc., a leading worldwide energy services company. McDermott subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for the offshore oil and natural gas industries.

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CONTACT: The Babcock & Wilcox Company Business Press Contact: Sharyn McCaulley, 330-860-1326 slmccaulley@babcock.com or Trade Press Contact: Steve Stultz, 330-860-6124 sstultz@babcock.com

KEYWORD: KENTUCKY INDIANA OHIO INDUSTRY KEYWORD: ENVIRONMENT ENERGY UTILITIES SOURCE: The Babcock & Wilcox Company

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