Press Release

HOUSTON – February 13, 2020 – KBR (NYSE: KBR) and Mitsubishi Hitachi Power Systems, Ltd. (MHPS) have agreed to work together to enable use of the pitch generated from KBR’s market-leading solvent de-asphalting (SDA) technology, ROSE^®, for steam and power generation. Pitch is the residue stream left over from the ROSE SDA process once the high-value material has been extracted. The solution will be offered by KBR as AiGS^SM (Asphaltene integrated Generation System).

KBR’s proprietary ROSE technology is the leading “bottom-of-the-barrel” solution to recover valuable products from crude oil. By working with MHPS, KBR will further extend the value delivered from ROSE technology by converting the SDA pitch into clean power. MHPS’ technology has three reference units in operation.                                                                             

“We are excited to offer this combined solution to our clients to include electricity generation through SDA pitch-fired boilers,” said Doug Kelly, KBR President, Technology Solutions. “Our combined solution with MHPS will enhance the economic efficiency of plants and provide a new, environmentally friendly option for power generation.”

With a global market share of more than 90%, KBR’s ROSE technology is a highly reliable process that uses up to 60% less energy and consistently delivers tremendous return on investment. ROSE is a key technology option to address the IMO2020 bunker fuel transition and has been continuously improved to meet current industry demands.

Mitsubishi Hitachi Power Systems, Ltd. (MHPS), headquartered in Yokohama, Japan, is a joint venture of Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd., integrating their operations in thermal power generation systems and environmental technology to handle the entire production process from development, design, manufacturing, construction and commissioning to after-sales service for thermal power plants. MHPS today ranks amongst the world’s leading suppliers of equipment and services to the power generation market.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program lifecycle within the Government Solutions and Energy sectors. KBR employs approximately 38,000 people worldwide (including our joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:

• Government Solutions, serving government customers globally, including capabilities that cover the full lifecycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics

• Technology Solutions, featuring proprietary technology, equipment, catalysts, digital solutions and related technical services for the monetization of hydrocarbons, including refining, petrochemicals, ammonia and specialty chemicals, as well as inorganics

• Energy Solutions, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU); program management and consulting services

KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

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Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company’s control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company’s indemnities from its former parent; changes in capital spending by the company’s customers; the company’s ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company’s ability to control its cost under its contracts; claims negotiations and contract disputes with the company’s customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR’s most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

For further information, please contact:

Investors
Alison Vasquez
Vice President, Investor Relations
713-753-5082
Investors@kbr.com

Media
Brenna Hapes
External Global Communications
713-753-3800
Mediarelations@kbr.com