The Babcock & Wilcox Company (B&W) (NYSE:BWC) has announced that the U.S. Department of Energy (DOE) has allocated an additional $20.5 million in funding to its Cooperative Agreement with Babcock & Wilcox mPower, Inc. (B&W mPower) under the Small Modular Reactor Licensing Technical Support Program.
With this most recent $20.5 million allocation, the full commitment of the Department to the initial budget period has now been made available to B&W mPower under the program. The first installment of $79 million was allocated by the DOE upon the signing of the formal agreement with B&W mPower in April 2013. The DOE has also provided approximately $2 million to national laboratories to perform important analyses and evaluation work related to this project, bringing the total DOE investment to $101 million during this initial project period. It is the intent of the DOE to provide additional funding to the project subject to incremental appropriations from Congress and B&W mPower's compliance with the terms of the agreement.
"This additional funding allocation from the DOE further demonstrates the U.S. government's commitment to supporting private industry in the development and deployment of small modular reactor technology," said Christofer M. Mowry, President of B&W mPower, Inc. "We remain on an aggressive schedule toward the anticipated commercial operation of the Clinch River mPower Plant near Oak Ridge, Tenn., by 2022 and appreciate the DOE's support as we move closer to delivering this vital technology to the global energy market."
The signing of the Cooperative Agreement formalized B&W's cost-share agreement with the DOE, following the selection of the mPower America team - comprised of B&W, the Tennessee Valley Authority and Generation mPower - as the winner of DOE's competitively bid funding opportunity. B&W mPower and Bechtel (who together formed Generation mPower LLC) will provide licensing and engineering support for the mPower America Project.
The B&W mPower reactor is an advanced integral pressurized water reactor designed to generate 180 MW of electricity. The reactor incorporates technology innovations which advance the state-of-the-art in nuclear plant safety, security and economics.