Babcock & Wilcox Power Generation Group Inc., a unit of Babcock & Wilcox Co. (NYSE: BWC), signed a $54 million contract to design and supply two wet flue gas desulfurization units and related components for two coal-fired units at Northern Indiana Public Service Co.’s R.M. Schahfer Generating Station in Indiana.
The FGD units will be used to control sulfur dioxide emissions from the 465 MW Unit 14 and the 515 MW Unit 15 boilers.
The equipment order is part of a settlement reached in January over alleged Clean Air violations reached by the U.S. Environmental Protection Agency and the Justice Department with NIPSCO. The settlement required the power generator to retire the 384 MW coal-fired Dean H. Mitchell Station in Gary, Ind.
The settlement followed a Notice of Violation issued by the EPA in 2004. It alleged that NIPSCO modified several its coal-fired power plant units without complying with Clean Air Act New Source Review.
Under the consent decree reached in January, EPA and the Justice Department secured injunctive relief from all of NIPSCO’s coal-fired power plants, including the 604 MW Bailly Station, the 540 MW Michigan City Station and the 1,943 MW R.M. Schahfer Station.
Startup of Schahfer Unit 14 is expected by fall 2013 and Unit 15 is scheduled for operations in the fall of 2015.
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