Babcock & Wilcox Enterprises, Inc. has announced a strategic partnership with Denham Capital’s Sustainable Infrastructure to address the growing power needs of data centres in the U.S. and Europe. This collaboration aims to explore sustainable power solutions, primarily focusing on coal to natural gas conversion projects and enhancing back-end environmental technologies.
This partnership will witness significant investments in transforming coal-fired plants into cleaner, natural gas-based facilities. As part of the energy transition, natural gas serves as a crucial bridge offering affordable and rapid deployment options until renewables can match the burgeoning electricity demand.
The alliance capitalises on Denham Capital's extensive experience in developing and managing large-scale power plants across continents, synergising it with B&W's longstanding expertise in coal power generation and conversions. Together, they aim to build sustainable infrastructure that meets the data centre sector's increasing need for dependable, adaptable, and budget-friendly power solutions.
Commenting on the venture, Justin DeAngelis from Denham Capital emphasised the immediate demand from data centres for a robust power generation solution. "Time-to-power remains a critical focus for developers. Utilising this partnership, we can address market requirements more efficiently," he stated.
Additionally, DeAngelis announced the formation of a dedicated portfolio company by Denham. This new entity will concentrate on delivering reliable and cost-effective power solutions, aiming to leverage existing energy fleets while simultaneously enhancing their quality and security through decarbonisation efforts.
Kenneth Young, Chairman and CEO of B&W, highlighted the combined expertise and technologies as instrumental in identifying and utilising opportunities to provide cost-effective solutions. "The rise of AI and data centres has heightened the need for new power generation capabilities. We are committed to meeting these demands efficiently and affordably," affirmed Young.
As a global leader in combustion and environmental technology solutions, B&W is well-prepped to manage major power generation upgrades and fuel transformation operations, along with offering sustained maintenance services for these systems long into the future.
