B&W and TerraPower Announce MOU for Collaboration on Innovative Generation IV Nuclear Technology

The Babcock & Wilcox Company (B&W) (NYSE:BWC) and TerraPower® have signed a Memorandum of Understanding (MOU) to support the development of TerraPower’s Generation IV traveling wave reactor (TWR), a safe, economic and sustainable nuclear energy system that utilizes advanced materials for more durable metallic fuels and supercomputing for advanced comprehensive modeling.

The TWR commercial reactor plant design is a 1,150 megawatt liquid sodium-cooled fast reactor that uses depleted uranium as fuel. This innovative design allows for the use of depleted uranium generated by the enrichment process used for existing light water reactors fueled with enriched uranium. With the conceptual design phase under way, B&W will provide support to TerraPower as the project enters the preliminary design phase.

B&W will provide TerraPower with services and program support in multiple areas, which may include design and fabrication of engineered components; fuel fabrication process development, prototype fabrication, fuel services; reactor design engineering; reactor operations support; staff augmentation, both U.S. and foreign assignment; engineering services; flow loop testing; licensing support; and materials testing. Through this MOU and the agreement the parties are currently working on, B&W will be recognized as a strategic technology supplier, while TerraPower continues its design work and prepares to commercialize the reactor globally.

Unlike B&W’s Generation III++ small modular reactor (SMR), mPower™ which is based on PWR technology and standard fuel enriched to 5%, TerraPower’s TWR is a larger reactor based on Generation IV technology and designed to use depleted uranium as fuel.

“B&W is privileged to be selected as a strategic supplier for the TerraPower development program,” said Joe Zwetolitz, President, Babcock & Wilcox Nuclear Energy, Inc. “We have a long tradition of providing industry leading engineering, manufacturing and services and look forward to supporting TerraPower and to participating in the development of the next generation technology."

“B&W’s valuable involvement with TerraPower includes work done through affiliate Nuclear Fuel Services, Inc. for development of the TWR fuel supply chain,” said Doug Adkisson, Senior Vice President, TerraPower. “This MOU with B&W makes it possible for us to tap the nuclear industry's excellence and keep American companies active in the international supply chain for advanced nuclear energy technologies.”

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 12,000 people, in addition to approximately 10,400 joint venture employees. Learn more at www.babcock.com.

About TerraPower
The TerraPower concept was born in 2006, when Bill Gates and a group of like-minded visionaries launched the program to develop a scalable, sustainable, emission-free and cost-competitive energy source that would allow all nations to quicken their pace of economic development and in a manner responsible to the climate.

Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including statements relating to the scope of the TerraPower MOU, to the extent such statements may be viewed as an indicator of future revenues.These forward-looking statements involve a number of risks and uncertainties, including, among other things, our ability to enter into a definitive agreement with TerraPower regarding support and services for the TWR. If one or more of these or other risks materialize, actual results may vary materially from those expressed. 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 annual report on Form 10-K for the year ended December 31, 2012 and subsequent quarterly reports on Form 10-Q. 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.