Shaw Awarded Additional EPC Contract for FGD Scrubbers

The Shaw Group's Shaw Stone and Webster unit, along with its consortium partner, Alstom Environmental Control Systems, has been awarded an engineering, procurement and construction contract by Duke Energy Carolinas, a unit of Duke Energy, to retrofit the coal-fired generating units at Duke's Allen Steam Station in Gaston County, North Carolina with flue gas desulphurization (FGD) units, also known as "scrubbers."

The scrubbers are expected to reduce the sulfur dioxide emitted from the plant by approximately 95 percent, significantly improving the quality of air emissions from the facility. Shaw will perform the majority of the project's engineering, procurement and construction. Alstom will design, engineer, manufacture and install the scrubber equipment.

The project is scheduled to be completed in 2010. The total value of the project, including equipment, is estimated to be approximately $400 million, of which Shaw's scope of work is valued at approximately $250 million.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "We are very pleased to begin this third scrubber retrofit project under our alliance agreement with Duke and Alstom. Our first two scrubber projects at Duke's Marshall Steam Station and Belews Creek, which are also being performed through a consortium with Alstom, are progressing very well with the Marshall project expected to be completed early in 2007 and the Belews Creek project to be completed in 2008. Duke Energy is an industry leader in providing environmentally safe economical power to its customers and it is an honor for us to continue this valued relationship."

Mr. Bernhard continued, "This new Duke project brings our in-progress emissions controls projects to 19 units at 11 locations for 5 customers, with a total contract value to Shaw of approximately $2.5 billion. Shaw remains the industry leader in this growing market."

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Posted 03/10/06

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