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BAE Systems to Replace Coal Power with $97 Million Natural Gas Facility at Holston Army Ammunition Plant

December 17, 2018

KINGSPORT, Tenn.--(BUSINESS WIRE)--Dec 17, 2018--BAE Systems has received a U.S. Army contract modification valued at $96.6 million, bringing the total contract value to $158 million, to design, build, and commission a natural gas-fired steam facility at Holston Army Ammunition Plant (HSAAP), an Army-owned, contractor-operated site located in Kingsport, Tennessee. The modernization project will replace an existing coal-fired power supply and greatly reduce the facility’s environmental footprint when the new natural gas plant is commissioned.

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BAE Systems will replace the coal-fired power supply at Holston Army Ammunition Plant with natural gas steam facility to greatly reduce the facility’s environmental footprint in Kingsport, Tenn. (Photo: BAE Systems, Inc.)

The construction of the natural gas facility is part of a long-term, U.S. Army-driven modernization requirement for the HSAAP installation, in part meant for more efficient energy production.

“The new natural gas-fired steam facility will be cleaner, more efficient and reduce emissions while providing a higher degree of reliability – all in support of our mission,” said Brian Gathright, vice president and general manager of Ordnance Systems at BAE Systems. “We are currently undertaking several major initiatives at Holston to modernize the installation’s operations and reduce environmental impacts. In partnership with the Army, BAE Systems is making these improvements as part of our commitment to the environment and to the health and safety of our employees and surrounding communities.”

BAE Systems has been the operating contractor of the Holston Army Ammunition Plant since 1999, developing a wide range of explosives for military and commercial applications. Since January 1999, BAE Systems Ordnance Systems business has provided modernization planning, project management, design, and construction at the Army munitions plant facilities it operates.

The estimated completion date is late 2021.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181217005057/en/

CONTACT: Christopher Finley, BAE Systems

Mobile: 540-315-0568

chris.finley@baesystems.comwww.baesystems.com/US

@BAESystemsInc

KEYWORD: UNITED STATES NORTH AMERICA TENNESSEE

INDUSTRY KEYWORD: ENERGY COAL OIL/GAS MANUFACTURING ENGINEERING ENVIRONMENT DEFENSE CONTRACTS CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE

SOURCE: BAE Systems

Copyright Business Wire 2018.

PUB: 12/17/2018 09:00 AM/DISC: 12/17/2018 09:01 AM

http://www.businesswire.com/news/home/20181217005057/en

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