Charlotte, N.C., October 6, 2010 — The oxy-coal combustion technology developed by Babcock and Wilcox Power Generation Group and Air Liquide has been included by the U.S. Department of Energy in its award of a cooperative agreement to Ameren Energy Resources Co., for the $1 billion FutureGen 2.0 project — a large-scale, integrated test of an oxy-coal-fired power plant with carbon dioxide capture and storage.

The cooperative agreement between the DOE and Ameren is the first step in the development of the project to repower a 200-MW power generation system at Ameren's Meredosia Plant near Jacksonville, Ill. with oxy-coal combustion technology developed by B&W PGG and Air Liquide.

The project is designed to produce clean energy from coal by capturing and storing about 1.3 million tons of carbon dioxide each year.

B&W PGG expects its scope of work will be to design the near-zero emissions plant’s oxy-coal combustion system, air quality control systems, boiler, steel and other control systems. Construction is estimated to begin in 2012 and be completed by the fourth quarter 2015.

The oxy-coal combustion process uses oxygen mixed with recycled flue gas to replace the normal combustion air in a coal-fired boiler. As coal is burned, the resulting flue gas consists primarily of carbon dioxide, which is well-suited for compression and storage.

“Over the last decade, B&W PGG has made critical investments in the research and development of carbon-control technologies such as oxy-coal combustion and our Regenerable Solvent Absorption Technology process,” said B&W President and Chief Executive Officer Brandon C. Bethards. “FutureGen 2.0 is the ideal large-scale project to validate the oxy-coal process, and it will set the stage for future applications of this promising carbon-capture technology.”

B&W PGG has successfully demonstrated oxy-coal combustion technology at its Clean Environmental Development Facility, a 30 MW-thermal combustion test facility in Ohio. It is applicable for new coal-fired power plants and for repowering or retrofits on existing coal-fired facilities.

Headquartered in Charlotte, N.C., The Babcock & Wilcox Co. has locations worldwide and employs about 13,000 people, in addition to about 10,000 joint venture employees.