Babcock Power to Supply Multi-pollutant Control System for AES' Greenidge Station.

DANVERS, Mass. -- Babcock Power Environmental Inc. (BPEI), located in Worcester, MA, a subsidiary of Babcock Power Inc., based in Danvers, MA, announced today that it has recently received a contract from AES for the design and supply of an innovative multi-pollutant control system for Unit #4 at AES' Greenidge Station power plant located near Dresden, New York.

This project is sponsored by the Department of Energy's (DOE) Power Plant Improvement Initiative with a goal of demonstrating a multi-pollutant control system to reduce emissions from smaller coal-fired plants for less money than it costs to control NOx and SO2 separately. Pittsburgh-based CONSOL Energy is the prime contractor under the DOE Cooperative Agreement and will be responsible for project administration, performance testing, and reporting. DOE's National Energy Technology Laboratory manages the CONSOL project, as well as the Power Plant Improvement Initiative projects.

The multi-pollutant control system offered by BPEI will reduce nitrogen oxide (NOx) emissions, sulfur dioxide (SOx) emissions, particulate matter (PM), mercury (Hg) and acid gases (SO3, HCl, and HF). Included in the scope are: low NOx burner upgrades to the existing tangential firing system and separate overfire air system, a combined Selective Non-Catalytic Reduction/Selective Catalytic Reduction (SNCR/SCR) system for further NOx removal, and a Dry Circulating Bed Flue Gas Desulfurization (DFGD) scrubber for SOx reduction, as well as mercury removal through carbon injection directly into the scrubber. Riley Power Inc., a subsidiary of Babcock Power Inc., will provide the low NOx burner upgrades and the SCR(1), while BPEI will utilize licensed Turbosorp(R) technology from Austrian Energy & Environment AG for the DFGD. BPEI will also collaborate with Fuel-Tech N.V., a leader in post-combustion SNCR control systems, on that portion of the hybrid NOx reduction system.

This innovative combination of environmental control technologies will result in lower initial capital cost, lower operating and maintenance costs, and improved reliability due to the simplified mechanical complexity of the overall system compared to other systems being offered today. Jim Dougherty, President of BPEI, stated that, "Greenidge Unit #4 is one of about 500 coal-fired units in the U.S. with capacities in the 50-600 MW range that are not currently equipped with FGD, SCR, SNCR or mercury control systems. These small-to-medium size units are increasingly vulnerable to fuel switching or retirement as a result of more stringent environmental regulations. This project will demonstrate the commercial readiness of this multi-pollutant emissions control system that is particularly suited, because of its low capital and maintenance costs, to meet the requirements of this large group of existing generating units."

AES is a leading global power company, with 2004 revenues of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 124 power facilities and delivers electricity through 15 distribution companies. Their 30,000 employees are committed to operational excellence and meeting the world's growing power needs.

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).

(1) SCR systems furnished utilize technology under an exclusive license from Balcke-Durr GmbH and from other Babcock Power Inc. proprietary sources.