Babcock & Wilcox Signs Agreement to Proceed with Work for Coal-to-Biomass Power Plant Conversion and Carbon Capture Project in Michigan

- Bioenergy with Carbon Capture and Storage (BECCS) facility will be able to capture up to 550,000 tons of CO₂ annually using B&W’s SolveBright™ technology while sending carbon-negative power to the grid

- Fuel-switching with CO₂ capture can help plant operators comply with emissions regulations while extending the life of baseload generating assets and safeguarding energy security

Babcock & Wilcox (B&W) (NYSE: BW) announced today that it has been granted a limited notice to proceed (LNTP) by NorthStar Clean Energy to begin work on a Bioenergy with Carbon Capture and Storage (BECCS) conversion of a former coal-fired power plant in Filer City, Mich., using B&W’s biomass SolveBright™ post-combustion carbon dioxide (CO₂) capture technology.

B&W is working with NorthStar Clean Energy to finalize the full contract in alignment with an extensive front end engineering and design study conducted by B&W for the project. The LNTP allows B&W to begin detailed design and procurement work while the parties finalize the contract. Full notice to proceed is expected in the fourth quarter of 2024. B&W’s full contract scope is expected to include engineering, design and delivery of equipment to convert the plant to use biomass fuel and add carbon capture technology. Babcock & Wilcox Construction Co., LLC, will manage the construction and mechanical scope of the project.

When the conversion project is complete, the Filer City power plant will use sustainable biomass as fuel – coupled with B&W’s SolveBright process – to generate power with net-negative greenhouse gas emissions. The plant will be capable of capturing up to 550,000 tons of CO₂ annually, which will be permanently stored underground.

“We are excited to work with NorthStar Clean Energy on this very important net-negative CO₂ emissions project,” said Jimmy Morgan, B&W Executive Vice President and Chief Operating Officer. “By pairing sustainably sourced biomass fuel with carbon capture, our customer will be able to produce clean energy while eliminating the environmental impact of greenhouse gas emissions.”

“As regulations require plant owners to significantly reduce or eliminate greenhouse gases from their coal-fired power generating assets, fuel-switching paired with CO₂ capture can allow these assets to continue to provide economical and reliable baseload energy for many years to come,” Morgan said.

“NorthStar Clean Energy is excited to bring our innovative spirit and development expertise to build one of the nation’s first large-scale biomass with carbon capture and sequestration projects,” said Brian Hartmann, President of NorthStar Clean Energy. “This project marks a step-change in real-world opportunities for our customers that are working to decarbonize and meet their business goals.”

The Filer City plant is jointly owned by Tondu Corp and NorthStar Clean Energy (a subsidiary of CMS Energy Corporation).

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to a limited notice to proceed, and an anticipated final contract and full notice to proceed, in connection with a bioenergy with carbon capture project in Michigan. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

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