BARBERTON, Ohio--(BUSINESS WIRE)--The Babcock & Wilcox Company (B&W), a unit of McDermott International, Inc. (NYSE:MDR), and American Electric Power (AEP) announced plans to pursue the commercial viability of a new combustion technology to reduce carbon dioxide (CO2) and other emissions from coal-fired power plants. Under the terms of a memorandum of understanding (MOU) agreement, the companies will assess the application of oxy-coal combustion as a retrofit to an existing AEP plant, and work toward the development of the first oxy-coal commercial validation project in the United States. Oxy-coal combustion uses pure oxygen for the combustion of coal in electricity generating plants. In this system, nitrogen that comes in with the air for the combustion process is eliminated. As a result, the exhaust gas is a relatively pure stream of CO2 that is ready for capture and sequestration or alternate uses such as enhanced oil recovery. Use of this technology is expected to result in near-zero emissions from coal-fired electric-generating facilities. B&W has established a collaboration agreement with American Air Liquide, Inc. for the continued development of the technology. During the summer of 2007, B&W will complete a pilot demonstration of the oxy-coal combustion technology at its Clean Environment Development Facility (CEDF) in Alliance, Ohio. The CEDF is a 30MWth combustion testing facility that simulates key operating characteristics of a modern, commercial fossil fuel-fired power plant and includes a pulverized coal feed system, furnace and convection pass, an air heater, dry and wet scrubbers, baghouses and an electrostatic precipitator. AEP will be among the utility participants in B&W’s Oxy-Coal Combustion Advisory Group in an effort to help bring the potential users of the technology into the development process. In addition, as part of the MOU, B&W and AEP will evaluate and select the most suitable existing AEP plant location for the commercial application of the oxy-coal combustion technology. B&W will also provide unit performance and design approximations for potential carbon capture uses, perform preliminary site equipment layouts, prepare a detailed scope of work, and develop schedule- and budget-price estimates. “B&W and AEP have a long history of working together to advance the technology of electric power generation,” said Brandon C. Bethards, president, B&W Fossil Power Group. “We expect that this study will bring us even closer to identifying a viable carbon-reduction solution for coal-firing power plants – one that is both economical and environmentally sound.” The feasibility study is scheduled for completion in the second quarter of 2008. In addition to the work under the MOU with AEP, B&W’s Canadian subsidiary, B&W Canada, is working with a major Canadian utility to develop a supercritical pressure, pulverized coal-fired boiler and to assess the feasibility of proceeding to the construction phase on a new, near-zero-emissions, 300MW power station using the oxy-coal combustion technology. In that unit, recovered CO2 would be sold for enhanced oil recovery operations and eventually sequestrated underground in stable geologic formations. Present in 72 countries, Air Liquide provides industrial and medical gases and related services and offers innovative solutions based on constantly enhanced technologies. These solutions, which are consistent with Air Liquide’s commitment to sustainable development, help to protect life and enable customers to manufacture many indispensable everyday products. Air Liquide is listed on the Paris stock exchange and is a component of the CAC 40 and Eurostoxx 50 indices (ISIN code FR 0000120073). American Air Liquide Inc. is Air Liquide’s U.S.-based research and development company. For more information, visit www.airliquide.com. American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than five million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 36,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). The company is based in Columbus, Ohio. The Babcock & Wilcox Company is a subsidiary of McDermott International, Inc., an engineering and construction company with specialty manufacturing and service capabilities focused on energy infrastructure. McDermott’s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government.
