Babcock & Wilcox and Cache Power Corp. Announce Initial Grant for Energy Storage and Carbon Capture Project Using BrightLoop™ Technology in Canada

Babcock & Wilcox (B&W) (NYSE: BW) announced today that it has been awarded a contract by Cache Power Corp. (Cache Power) to execute an engineering study for Cache Power’s Marguerite Lake Compressed Air Energy Storage (CAES) and Hydrogen Hub Project near La Corey, Alberta, Canada.

The study is partially funded by a grant awarded by Alberta Innovates, a Canadian provincial crown corporation created and funded by the government of Alberta which is responsible for promoting innovation and economic growth in the province. The project will utilize B&W’s advanced BrightLoop™ energy production and decarbonization technology to support clean energy production and enable zero-emissions operation.

Cache Power is developing the 640-megawatt (MW) CAES facility next to the existing Marguerite Lake substation, which will be built in two identical 320 MW phases. The facility will store renewable energy from the grid in subterranean mined salt caverns in the form of compressed air and then release that air to generate electricity to meet grid demand.

The facility is designed to use natural gas or hydrogen to reheat the compressed air before it is expanded through turbines to generate electricity. B&W’s BrightLoop technology will be used to generate up to 60 tonnes-per-day of hydrogen for the facility, while also generating a nearly pure stream of carbon dioxide (CO₂) for capture and storage, enabling the project to reach net-zero emissions.

“We thank Alberta Innovates for the support they’ve provided for this ground-breaking net-zero project and we thank Cache Power for their innovative mindset to add BrightLoop hydrogen generation to the project,” said B&W Chief Technology Officer Brandy Johnson. “BrightLoop’s versatility makes it an ideal solution for a wide variety of applications, including Cache Power’s novel CAES project.”

“We’re excited to begin engineering for this project and take the next step forward with Cache Power,” Johnson said.

“Our project represents a major step toward clean, dispatchable and long-duration energy storage in Alberta,” said Cache Power President Jordan Costley. “By combining compressed air energy storage with hydrogen production, storage and use, we’re creating a sustainable solution to support grid reliability while helping Alberta meet its decarbonization goals.”

B&W's BrightLoop process is a versatile and flexible chemical looping technology utilizing a proprietary oxide TranspO₂rt™ particle for steam, hydrogen or syngas production with CO₂ isolation and can be used for a wide range of applications. The BrightLoop system produces clean energy with complete in-situ CO₂ capture utilizing a broad range of solid and gaseous fuels and feedstocks.

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

About Cache Power Corp.

Headquartered in Bonnyville, Alberta, Cache Power Corp. is a wholly owned subsidiary of Federation Group Inc., a medium sized EPC company operated under the trade names Federation Engineering and Federation Construction. Follow us on LinkedIn and learn more at cachepower.ca.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the award of a contract for an engineering study funded by a grant for a compressed air energy storage facility utilizing B&W’s BrightLoop technology in Alberta, Canada. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

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“BrightLoop’s versatility makes it an ideal solution for a wide variety of applications, including Cache Power’s novel CAES project,” said B&W Chief Technology Officer Brandy Johnson.