The Babcock & Wilcox Company (B&W) (NYSE: BWC) and FirstEnergy Corp.
(NYSE: FE) announced today that FirstEnergy and a B&W subsidiary,
Generation mPower LLC (GmP), have signed a Memorandum of Understanding
regarding studies on the potential deployment of the B&W mPowerTM
small modular reactor in FirstEnergy’s service territory.
FirstEnergy and GmP plan to work together to perform an independent
financial review of mPower economics, evaluate several alternative
potential sites for construction of B&W mPower plants, complete a
preliminary pre-licensing analysis, and assess the need and timing for
prospective deployment of B&W mPower plants in the FirstEnergy
The B&W mPower SMR is an advanced 180 MWe utility-scale nuclear reactor
that incorporates robust, inherently safe protection systems and a fully
underground containment structure. The mPower design maximizes the use
of proven, mature systems and components within an innovative plant
architecture that reduces construction risks and minimizes ownership
“Our agreement today is an outgrowth of the company's involvement with
B&W's consortium to promote the development of small modular reactors,"
said James H. Lash, president of FirstEnergy Generation and Chief
Nuclear Officer. “Completing these studies will help us determine how
B&W small modular reactors may be part of our long term generation
Christofer M. Mowry, President and Chief Executive Officer of GmP said,
“This cooperative effort with FirstEnergy demonstrates growing interest
in our B&W mPower SMR as a clean, efficient and affordable power
generation option. B&W has a long history of working in Ohio, and our
employees in the state have an important role in the development of
safer, more secure nuclear technology. We appreciate FirstEnergy’s
industry leadership, and look forward to working closely with them to
complete these studies.”
“This agreement between FirstEnergy and Generation mPower represents
another significant step towards making Ohio a hub for advanced
manufacturing and next-generation energy,” Sen. Sherrod Brown (OH) said.
“This agreement, which will draw on highly skilled Ohio workers from
design and manufacturing to deployment, is critical to sustained job
creation and international competitiveness in clean energy. I applaud
FirstEnergy and Babcock & Wilcox, two companies with a significant
presence in Ohio, for moving forward on American-made advanced power
generation options for Ohio, the rest of the nation, and the world.”
“Sustained economic growth and job creation in the United States will
require a domestic supply of safe, reliable, and cost-effective energy,”
said Sen. Rob Portman (OH). “One or more small modular reactors in our
state could not only provide this energy need, but would continue to
support advanced energy careers in Ohio. I applaud FirstEnergy and
Generation mPower for their commitment to advanced energy development
and our nation's energy security."
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 at www.babcock.com.
FirstEnergy is a diversified
energy company dedicated to safety, reliability and operational
excellence. Its 10 electric distribution companies comprise one of the
nation's largest investor-owned electric systems. Its diverse generating
fleet features non-emitting nuclear, scrubbed baseload coal, natural
gas, and pumped-storage hydro and other renewables, and has a total
generating capacity of nearly 23,000 megawatts.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements
related to the Memorandum of Understanding and GmP’s plans with
FirstEnergy thereunder. These forward-looking statements involve a
number of risks and uncertainties, including, among other things, that
transactions currently contemplated by GmP and FirstEnergy may change
materially during further good faith efforts to negotiate a mutually
acceptable definitive agreement or that a definitive binding agreement
may not be entered into if GmP and FirstEnergy fail to reach agreement
on any material term. 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 risk factors, please
see B&W's filings with the Securities and Exchange Commission, including
its annual report on Form 10-K for the year ended December 31, 2011. B&W
cautions not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof, and undertakes no
obligation to update or revise any forward-looking statement, except to
the extent required by applicable law.