BAE Systems Building $97M Natural Gas Facility to Replace Coal Power

BAE Systems received a contract modification from the U.S. Army valued at $96.6M to construct a natural gas-fired steam facility at Holston Army Ammunition Plant in Kingsport, Tenn., the company reported Monday.

The new project is part of a long-term, Army-driven modernization requirement for the HSAAP installation designed to greatly reduce the facility’s environmental footprint. Construction of the plant is expected to conclude in late 2021 and will replace the existing coal-fired power supply.

“We are currently undertaking several major initiatives at Holston to modernize the installation’s operations and reduce environmental impacts, said Brian Gathright, vice president and general manager of Ordnance Systems at BAE Systems. “In partnership with the Army, BAE Systems is making these improvements as part of our commitment to the environment and the health and safety of our employees and surrounding communities.”

As an operating contractor with HSAAP, BAE Systems has provided IT modernization planning and project management for the Department of Defense since 1999. Holston earned universal acclaim for producing IMX 101, a more stable explosive than TNT or Composition B to make the handling of them safer for U.S. troops, according to the main page of the facility.

The DoD selected BAE Systems as one of 15 companies to assist in the development of the next-generation mission technology, under a nine-year, indefinite delivery/indefinite quantity contract with a ceiling value of $28B for all future work, the company reported in October.