[cdn-nucl-l] Coal Plant to Get Cleaner

["Adam McLean" <adam.mclean@utoronto.ca>]

Posted on the OPG web site on November 26th, 2001 at:
http://www.opg.com/info/news/Newsnov26_2001.asp

Adam

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Ontario Power Generation and Babcock & Wilcox Canada Team Up for $200
Million Environmental Project

Nanticoke, Ont. -- Ontario Power Generation (OPG) announced today that
Babcock & Wilcox Canada of Cambridge is the prime contractor for the
engineering and construction of Selective Catalytic Reduction (SCR)
equipment at OPG’s Nanticoke and Lambton coal-fired generating stations. The
SCR units will reduce smog-causing agents by 80 per cent on the units on
which they will be installed. (See Background for more information. Click
here for a full screen schematic of an SCR.)

SCR is a proven, effective technology for reducing emissions from fossil
plants; with more than 100 installed world wide and over 130 installations
planned in the United States. The four units OPG is installing will reduce
nitrogen oxide (NOx) by about 12,000 tonnes a year, or the equivalent of
taking 600,000 cars off the road. The $200 million contract is part of OPG’s
investment in clean air technology, which will see well over $250 million
spent on the SCR project, cleaner burners and other modifications at
Nanticoke and Lambton.

At today’s Nanticoke signing ceremony, OPG Chairman Bill Farlinger said "the
SCRs and the other environmental technologies we are adding at Lambton and
Nanticoke represent a tremendous commitment to emissions reductions. This
clearly demonstrates that we are reducing our environmental impacts and
contributing to clean air. Ontario Power Generation will continue to do
whatever it takes meet or better the province’s tough new air quality
regulations, while also providing a reliable and competitively-priced
product."

"Investing in new technologies that reduce emissions is great news for the
environment and Ontario's economy," Energy, Science and Technology Minister
Jim Wilson said today. "I'm pleased that OPG is protecting the environment
and helping us meet one of our key principles for a competitive electricity
market."

"Babcock & Wilcox Canada and its employees are proud to have been selected

by Ontario Power Generation to design, manufacture and install this
equipment, the first of its kind in Canada," said Paul Koenderman, President
of Babcock & Wilcox Canada. "The project will provide our organization with
a considerable amount of project management and engineering work, will add
to our shop backlog at our Cambridge, Ontario and Melville, Saskatchewan

facilities, and will involve a significant amount of construction activity.
B&W Canada and OPG have a long and successful relationship and we look
forward to continuing that relationship as we complete this project."

The first of the four SCR units will be in service at Lambton’s Unit 4, near
Sarnia, by late 2002. Nanticoke Unit 8 and Lambton Unit 3 will be completed
by May 2003, and Nanticoke’s
Unit 7 will be installed by November 2003.

SCR are large steel structures that are installed outside the station,
between the boiler and the smokestack. The flue gas passes through the SCR,
where a chemical reaction takes place that converts the nitrogen oxide into
harmless nitrogen and water vapour.

An independent environmental screening report determined that the units will
result in "an important improvement to air quality." OPG contributes just
seven per cent of the smog causing agents affecting air in Ontario, but the
company has undertaken an impressive program to reduce that even further.

OPG has invested in low NOx burners, turbine improvements and improved
control systems that increase station efficiency. The company is also
involved in industry research into new ways of reducing the impact of its
coal stations. OPG will proceed with the restart of the Pickering A station,
subject to appropriate regulatory approvals. This will add 2,000 MW of
emission free generation to the system. The company will also quadruple its
renewable energy portfolio to 500 MW by 2005.

Ontario Power Generation is an Ontario based company, whose principal
business is the generation and sale of electricity to customers in Ontario
and to interconnected markets. OPG's goal is to be a premier North American
energy company while operating in a safe, open and environmentally
responsible manner. OPG's focus is to produce reliable electricity from
competitive generation assets, power trading, and commercial energy sales
activities.

Babcock & Wilcox Canada serves the North American electric utility and
industrial markets and the global nuclear utility market. Based in
Cambridge, Ontario, it is a division of The Babcock & Wilcox Company in
Barberton, Ohio, which is an operating unit of McDermott International, Inc.
(NYSE:MDR). The Babcock & Wilcox Company is located on the Internet at
www.babcock.com.

CONTACT: OPG Media Relations – 416-592-4008
Chris Sellers, Babcock & Wilcox, 519-621-2130 Ext. 2416