The Babcock & Wilcox Company Awarded Scrubber Contract for Allegheny Energy


BARBERTON, Ohio, July 14, 2006 -- The Babcock & Wilcox Company (B&W) has received a contract from Allegheny Energy for engineering, materials, construction, start-up and commissioning of wet flue gas desulfurization (FGD) units at its Hatfield's Ferry Power Station, located in Masontown, Pa.

Work will be completed on Hatfield's Ferry Units 1, 2 and 3, all 576-megawatt boilers originally supplied by B&W in 1969, 1970 and 1971, respectively. B&W will supply the FGD systems, commonly called scrubbers, for each unit including absorber areas and a common reagent preparation and dewatering system.

Construction services will be provided by B&W's Babcock & Wilcox Construction Co., Inc. subsidiary.

"B&W continues to be a leading provider of reliable, value-added environmental solutions for utilities across North America, and we are extremely pleased to once again work with Allegheny Energy at these plants," said David L. Keller, B&W president and chief operating officer. "This is a significant award, and it demonstrates confidence in our technology and our ability to successfully complete projects. It also cements our already strong presence in this important market."

Engineering for the project is underway at B&W's Barberton headquarters. The expected completion date is 2009.

Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned utility consisting of two major businesses. Allegheny Energy Supply owns and operates electric generating facilities, and Allegheny Power delivers low-cost, reliable electric service to customers in Pennsylvania, West Virginia, Maryland, and Virginia. For more information, visit www.alleghenyenergy.com

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 industry. The Babcock & Wilcox Company is headquartered in Barberton, Ohio, USA.

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