Babcock & Wilcox’s (B&W) thermal business segment has entered into an agreement to convert a coal power plant in North America to natural gas, the company announced in a March 18 press release.

Valued at approximately $246 million, the agreement provides B&W with a limited notice to proceed for the coal-to-natural gas project. Notice to proceed for the full contract is expected in fourth quarter 2024.

B&W will convert the plant’s 1,000-megawatt two coal-fired boilers to natural gas by designing and installing burners, air systems, fans and other equipment.

“Utilities across North America and throughout the world are evaluating options to extend the life of their thermal power generating assets,” said Chris Riker, senior vice president of B&W Thermal. “Replacing coal or oil with cleaner-burning fuels like natural gas, biofuels or hydrogen is often a cost-effective way for plant owners to lower emissions while maintaining reliable power generation capacity.”

Riker said B&W’s field construction experience and its subsidiary Babcock and Wilcox FPS Inc.’s specialized combustion equipment make B&W ideally suited for large fuel-switching projects.

The Babcock & Wilcox Co. will begin engineering and design work with support from FPS under the limited notice to proceed. Babcock & Wilcox Construction Co. LLC will begin the project’s construction under an intercompany agreement when a full notice to proceed is received.