The Babcock & Wilcox Company (B&W) (NYSE: BWC) announced today that the oxy-coal combustion technology developed by its Babcock & Wilcox Power Generation Group, Inc. subsidiary (B&W PGG) and Air Liquide Process & Construction, Inc. has been included by the U.S. Department of Energy (DOE) in its award of a cooperative agreement to Ameren Energy Resources Company, LLC, for the $1 billion FutureGen 2.0 project - the first large-scale, integrated test of an oxy-coal-fired power plant with carbon dioxide (CO2) capture and storage (CCS).

The recently announced cooperative agreement between the DOE and Ameren is the first step in the development of the project to repower a 200-megawatt power generation system at Ameren's Meredosia Plant near Jacksonville, Ill. with oxy-coal combustion technology developed by B&W PGG and Air Liquide. The project is designed to produce clean energy from coal by capturing and storing approximately 1.3 million tons of CO2 each year.

B&W PGG expects its scope of work will be to design the near-zero emissions plant's oxy-coal combustion system, air quality control systems, boiler, steel and other control systems. Construction is estimated to begin in 2012 and be completed by the fourth quarter 2015.

The oxy-coal combustion process uses oxygen mixed with recycled flue gas to replace the normal combustion air in a coal-fired boiler. As coal is burned, the resulting flue gas consists primarily of CO2, which is well-suited for compression and storage.

"Over the last decade, B&W PGG has made critical investments in the research and development of CO2-control technologies such as oxy-coal combustion and our Regenerable Solvent Absorption Technology (RSATTM) process," said B&W President and Chief Executive Officer Brandon C. Bethards. "FutureGen 2.0 is the ideal large-scale project to validate the oxy-coal process, and it will set the stage for future applications of this promising carbon-capture technology."

B&W PGG has successfully demonstrated oxy-coal combustion technology at its Clean Environment Development Facility, a state-of-the-art 30 MW-thermal combustion test facility in Ohio. It is applicable for new coal-fired power plants and for repowering or retrofits on existing coal-fired facilities.

About B&W

Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 13,000 people, in addition to approximately 10,000 joint venture employees. Learn more at www.babcock.com.

Cautionary Statement Regarding Forward Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to B&W's expected scope of work in the repowering project and related timing. These forward-looking statements involve a number of risks and uncertainties, including, among other things, adverse changes to the scope or funding of the FutureGen 2.0 project and delays or other difficulties in the development of the project. If one or more of these or other risks materialize, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see B&W's filings with the Securities and Exchange Commission, including its registration statement on Form 10, as amended. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.