B&W, TVA Sign Contract for Clinch River mPower Construction Permit
CHARLOTTE, N.C.--(BUSINESS WIRE)-- The Babcock & Wilcox Company (B&W) (NYS: BWC) announced today that its subsidiary, Babcock & Wilcox mPower, Inc. (B&W mPower), and the Tennessee Valley Authority (TVA) have signed a contract to prepare and support Nuclear Regulatory Commission (NRC) review of a Construction Permit Application for a B&W mPower™ small modular reactor (SMR) nuclear plant at TVA's Clinch River Site in Oak Ridge, Tenn.
This contract formalizes the first steps toward the anticipated B&W mPower deployment at Clinch River, as contemplated in TVA's May 2011 Letter of Intent to B&W for the project. It also represents the first definitive milestone in the U.S. Department of Energy's (DOE) recently initiated SMR Licensing Technical Support Program for commercial demonstration of SMRs by 2022. The DOE selected B&W mPower in November 2012 as the recipient of the Program's competitively bid cost-share funding grant.
Work at the Clinch River site will commence once B&W mPower and the DOE sign a cooperative agreement for the grant funds. The contract defines the respective responsibilities and work scopes for TVA and B&W to conduct the Clinch River Site geological characterization, develop a Preliminary Safety Analysis Report, and prepare an Environmental Assessment for deploying up to four mPower SMR reactors. TVA currently expects to submit the Construction Permit Application to the NRC in 2015.
"This agreement between TVA and Babcock & Wilcox represents an important step toward TVA's inclusion of small modular reactors as a source of exactly the kind of clean, reliable, safe, and low-cost electricity the Tennessee Valley needs to attract good jobs," said Sen. Lamar Alexander (R-Tenn.).
"Today's agreement is another positive step toward deployment of this breakthrough reactor technology in Tennessee that will hopefully be the beginning of a new surge in safe, clean and affordable nuclear power," said Sen. Bob Corker (R-Tenn.). "I'm proud to represent a state that is playing a leading role in advancing proven technologies that will improve our energy security and make our country stronger."
"This is an exciting project for East Tennessee and I am glad to see this important milestone reached," said Rep. Chuck Fleischmann (R-Tenn.). "The third district has a long history of nuclear power leadership, I look forward to the economic growth and clean energy that the Clinch River project in Roane and Anderson County offers."
E. James Ferland, President and Chief Executive Officer of B&W said, "This Construction Permit contract with TVA is evidence of real and definitive progress toward our goal of completing the first commercial deployment of an SMR in the United States by 2022."
"B&W thanks the State of Tennessee, Governor Haslam, Senators Alexander and Corker, Representative Fleischmann and the DOE," Ferland said. "Without the DOE's Program, this Clinch River mPower project, which is so critical to the future of America's energy security and transition toward a cleaner American energy portfolio, wouldn't be possible."
The B&W mPower reactor is an advanced integral pressurized water reactor designed to generate 180 MW of electricity. The reactor incorporates technology innovations which advance the state-of-the-art in nuclear plant safety, security, and economics.
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,700 people, in addition to approximately 10,400 joint venture employees. Learn more atwww.babcock.com.
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power distributors serving 9 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River system and assists local power companies and state and local governments with economic development and job creation.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements relating to the scope of work to be completed under the Construction Permit contract with TVA and the timing associated with those activities. These forward-looking statements involve a number of risks and uncertainties, including, among other things, our inability to finance B&W mPower reactor research and development efforts or our inability to finalize a funding contract under the SMR Licensing Technical Support Program with the DOE. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risks, please see B&W's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
The Babcock & Wilcox Company
Ryan Cornell, Public Relations Specialist, 330-860-1345
Jenny L. Apker, Vice President, Treasurer and Investor Relations, 704-625-4937
KEYWORDS: United States North America Canada North Carolina Ohio Tennessee
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