KBR (NYSE: KBR) announced today that a consortium consisting of its subsidiary, BE&K Construction Company LLC (BE&K) and a subsidiary of The Babcock & Wilcox Company (B&W) has been awarded a contract by the Palm Beach County Solid Waste Authority (SWA) to provide engineering, procurement and construction (EPC) services for the County’s new state-of-the-art waste-to-energy (WTE) facility. The contract for the EPC phase of the project – for which BE&K and B&W will share the work scope – is valued at $668 million with a large portion of the work to be performed by BE&K.

The project will consist of three new mass burn boilers capable of generating up to 95 gross megawatts of electricity, grates, ash systems, metals recovery systems, emissions control equipment – including a dry flue gas desulfurization unit, baghouse, carbon injection and selective catalytic reduction system – duct work and other components. B&W will design and supply the boilers and air quality control systems. BE&K will provide engineering and procurement of the balance of plant equipment and provide overall construction services for the project. Work on the project is expected to begin in May 2011. The contract award follows the successful completion by BE&K of a major refurbishment of the County’s existing two-boiler WTE facility.

“We are proud to be part of the team selected by the Palm Beach County Solid Waste Authority to deliver EPC services for such an historic and significant project for the County,” said Jim Stewart, President, KBR Power & Industrial. “Having joined forces with Babcock & Wilcox on more than 40 major design/build projects for the last 40 plus years, I am confident that this team offers the unparalleled execution know-how necessary to successfully deliver a world-class facility to Palm Beach County and its residents.”

The facility, once complete, will be capable of processing 3,000 tons of municipal solid waste per day to produce electricity and significantly reduce the amount of waste sent to the county’s landfill. The project scope includes the installation of a metals recovery system to maximize the recovery and recycle of aluminum, steel and other metals.

The project is expected to create the equivalent of 325 full-time construction jobs in West Palm Beach, with more than 900 people to be employed during some phases of construction. When operational, the new plant is expected to employ 64 permanent, full-time workers.

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets. For more information, visit www.kbr.com.

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