Babcock & Wilcox to supply biomass plants in Italy

Barberton, Ohio-based Babcock & Wilcox said today that it's Denmark unit will supply biomass plants to Italy's Advanced Renewable Energy under an agreement potentially worth up to €100 million.

Babcock & Wilcox is a subsidiary of Houston's McDermott International (NYSE: MDR).

Under the terms of the 10 year deal, Babcock & Wilcox will be the exclusive supplier to Advanced Renewable Energy for as many as 25 small-scale, biomass-fueled power plants using combined cycle gasification technology.

"Through this agreement with ARE, B&W will continue to expand the reach of its innovative combined cycle gasification technology — one that provides a cost-effective solution for small, renewable-fired power plants in Europe and around the world," said Brandon Bethards, president of the Babcock & Wilcox Power Generation Group.

Babcock & Wilcox expects orders for six biomass plants from Advanced Renewable Energy this year, with the first plant scheduled for commercial operations in the first quarter of 2010.

Each of the power plants, to be built in Italy, will be designed to produce 4 megawatts of electricity using wood chip biomass to produce gas fuel for engines that will in turn drive electric generators.

The company said that heat in the flue gas produced during the combustion process will be recovered in a heat recovery boiler, producing steam to drive a steam turbine generator, allowing the plant to operate at an electrical efficiency of approximately 45 percent.