Babcock Power Awarded Air Quality Control Systems for New TXU Coal Plant.

DANVERS, Mass. -- Babcock Power Environmental Inc., located in Worcester, MA, a subsidiary of Babcock Power Inc., based in Danvers, MA, announced today that it was awarded a contract for the Air Quality Control Systems (AQCS) for TXU's lignite fired Oak Grove power plant near Hearne, TX. Fluor Corporation will provide engineering, procurement and construction (EPC) services for the two new units of this world-class clean coal facility which will utilize the best available control technology to minimize emissions. This contract will include a performance guarantee that the AQCS will control air emissions to levels which meet or exceed draft air permit limits on key emissions from the Oak Grove plant.

Babcock Power's scope of supply has an approximate value of $200 million and includes the design and supply of two wet flue gas desulfurization (WFGD) systems, two selective catalytic reduction (SCR) systems, sorbent injection system for mercury control and two fabric filters for the new environmentally advanced 1,720 megawatt Oak Grove facility. When complete, the plant will include two supercritical pulverized coal-fired boilers, each generating 860 megawatts of electricity, as well as one of the power industry's most efficient and reliable emissions reduction system.

Babcock Power provides clients with a single technology source for the removal of multi-pollutants, including SO2, NOx, HCl, SO3, Hg and fine particulates. Jim Dougherty, President of Babcock Power Environmental Inc., stated, "We are very proud to have been chosen by TXU to meet the stringent clean air standards that are required at this plant. We have more than 34,000 megawatts of SCRs firing a wide range of coals, oils and gases, being designed, under construction or operating in the USA, and have a worldwide reference list of over 65,000 MW. Our advanced WFGD technology, based upon 60,000 MW of installed FGD capacity worldwide, incorporates such features as CFD modeling of the scrubber inlet, enhanced agitator oxidation air injection, and bi-directional flow nozzles that will provide greater fuel flexibility, lower energy consumption, lower emissions and industry-leading reliability for the Oak Grove facility."

TXU Corp., a Dallas-based energy company, manages a portfolio of competitive and regulated energy businesses primarily in Texas. In the competitive TXU Energy Holdings segment (comprised of electricity generation and development, wholesale marketing and retailing), TXU Energy provides electricity and related services to 2.3 million competitive electricity customers in Texas, more customers than any other retail electric provider in the state. TXU Power has over 18,300 megawatts of generation in Texas, including 2,300 MW of nuclear and 5,837 MW of lignite/coal-fired generation capacity.

Babcock Power Inc., through its subsidiaries, is one of the world's leading suppliers of technology, equipment, and services to the power generation industry. Babcock Power subsidiary companies include; Vogt Power International (Louisville, KY), Thermal Engineering International (USA) Inc. (Santa Fe Springs, CA), Babcock Power Environmental, Riley Power Inc. and Babcock Power Services (Worcester, MA), Boiler Tube Company of America (Lyman, SC), TEi Construction Services, Inc. (Greer, SC) and TEi-Struthers Wells (Warren, PA).