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BAE announces $96.6M contract to build natural gas-fired steam facility

Hank Hayes • Dec 19, 2018 at 8:28 AM

KINGSPORT — BAE Systems has announced it has received a U.S. Army contract modification valued at $96.6 million to design, build and commission a natural gas-fired steam facility at Holston Army Ammunition Plant (HSAAP).

The modernization project, with a total contract value at $158 million, will replace an existing coal-fired power supply and reduce the facility’s environmental footprint.

The construction of the natural gas facility is part of a long-term, U.S. Army-driven modernization requirement for the HSAAP site 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 6,042-acre 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.

The modernization that has been going on at HSAAP has involved the facility moving from 400 employees in 2003 to about 1,100 today with approximately 250 contract personnel on the property.

At a public meeting held last week, HSAAP and BAE officials pledged future modernization will continue with “investment (of) hundreds of millions of dollars” at the facility.

As part of that modernization, a $132 million expansion of its industrial wastewater treatment plant should be complete by April 2020.

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