Babcock & Wilcox Secures $40 Million Contract for Advanced Wet Gas Scrubbing Technology at Canadian Refinery
Babcock & Wilcox (B&W) (NYSE: BW) has announced a major new contract valued at $40 million to deliver its advanced low-pressure Wet Gas Scrubbing (WGS) technology for a large petroleum refinery located in Canada. The award represents a significant expansion of an existing customer relationship, building on an initial $10 million order that was publicly disclosed in September. The additional $30 million commitment underscores growing confidence in B&W’s environmental solutions and reflects increasing investment by refiners in emissions-control technologies amid tightening regulatory standards.
The contract further strengthens B&W’s position as a leading provider of air quality and environmental control systems for the North American refining industry. As governments across Canada and the United States continue to implement stricter air emissions limits, refinery operators are prioritizing technologies that not only ensure compliance but also enhance operational efficiency and long-term sustainability. B&W’s wet gas scrubbing solution is specifically designed to meet these evolving requirements while minimizing energy use and system complexity.
Supporting Compliance in a Challenging Regulatory Environment
At the heart of the project is B&W’s low-pressure Wet Gas Scrubbing technology, which is widely recognized for its ability to control sulfur dioxide (SO₂) emissions generated by fluid catalytic cracking (FCC) units and fluid coker units—two of the most emissions-intensive processes in petroleum refining. FCC units, in particular, are essential to converting heavy hydrocarbons into lighter, high-value products such as gasoline and diesel, but they also produce significant quantities of sulfur-containing exhaust gases.
B&W’s WGS systems are engineered to capture and neutralize SO₂ emissions before they are released into the atmosphere, helping refiners meet stringent environmental regulations imposed by federal and provincial authorities. In Canada, refinery operators face increasingly rigorous air quality standards, particularly in regions near population centers or environmentally sensitive areas. Compliance with these standards is not optional, making advanced scrubbing technology a critical component of refinery operations.
In addition to sulfur dioxide control, B&W’s wet gas scrubbing systems can be configured to address nitrogen oxides (NOₓ) and particulate matter emissions. This adaptability allows refinery operators to deploy a single, integrated emissions-control solution rather than relying on multiple standalone systems. As a result, refiners can achieve broader regulatory compliance while simplifying maintenance and reducing overall lifecycle costs.
Proven Technology with Global Reach
B&W is a licensed provider of ExxonMobil’s Wet Gas Scrubbing technology, a process that has been deployed in dozens of refinery installations worldwide. The ExxonMobil WGS process has earned a strong reputation for performance, durability, and operational reliability across a wide range of refinery configurations and operating conditions.
By combining ExxonMobil’s proven process design with B&W’s deep expertise in engineering, procurement, and project execution, the company delivers systems that are tailored to the specific needs of each customer. This collaborative approach ensures that installations can accommodate challenging site constraints, retrofit requirements, and unique process conditions—factors that often complicate emissions-control projects in aging refinery infrastructure.
One of the distinguishing features of B&W’s WGS technology is its low-pressure operation. Unlike some conventional scrubbing systems that require higher pressure drops and increased energy consumption, B&W’s solution is designed to achieve high SO₂ removal efficiency while minimizing energy use. This is particularly important for refiners seeking to balance environmental compliance with cost control, especially in a market characterized by volatile margins and rising operational expenses.
Strategic Importance for B&W’s Environmental Portfolio
The Canadian refinery project represents a notable milestone in B&W’s broader strategy to expand its environmental and climate-focused business offerings. Through its Environmental and ClimateBright™ platform, the company is investing in technologies that help industrial customers reduce emissions, improve efficiency, and navigate the global energy transition.
“This contract underscores the confidence our customers have in B&W’s ability to deliver complex environmental solutions on time and on budget,” said Justin Chenevey, Vice President, Environmental and ClimateBright at B&W. “Our wet gas scrubbing technology combines ExxonMobil’s proven process with B&W’s engineering expertise and procurement capabilities to provide exceptional reliability, efficiency, and flexibility for refineries facing increasingly strict emissions standards.”
Chenevey noted that demand for advanced emissions-control systems is expected to continue growing as refiners modernize facilities to comply with new regulations and corporate sustainability commitments. Many operators are also preparing for future regulatory scenarios by installing systems that can be upgraded or expanded to handle additional pollutants.
Broader Implications for the Refining Industry
The award highlights a broader trend across the North American refining sector: sustained investment in environmental infrastructure despite uncertainty around long-term fossil fuel demand. While refiners are navigating the energy transition and exploring diversification into renewable fuels, sustainable aviation fuel (SAF), and hydrogen, traditional petroleum refining remains a critical component of the energy system.
As a result, refiners are focusing on reducing the environmental footprint of existing assets rather than abandoning them outright. Technologies such as wet gas scrubbing play a key role in this strategy by enabling continued operation while significantly lowering emissions intensity.
For Canadian refineries in particular, compliance with both national climate policies and provincial air quality regulations requires a careful balance of technology selection, cost management, and operational reliability. B&W’s growing footprint in the region positions the company to capitalize on these needs while reinforcing its reputation as a trusted partner for complex environmental projects.
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