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Foster Wheeler Awarded Limited Notice to Proceed for Circulating Fluidized-Bed Steam Generator

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Foster Wheeler AG announced today that a subsidiary of its Global Power Group has been given a limited notice to proceed (LNTP) by GS Engineering and Construction for the design of a circulating fluidized-bed (CFB) steam generator for the Green Energy Centre BTO (Build, Transfer, Operate) Project of Daegu Metropolitan City, South Korea, the owner and developer of the project.

The terms of the agreement were not disclosed, and the value of the LNTP will be included in the company's fourth-quarter 2011 bookings. Foster Wheeler hopes to finalize the contract and to receive full notice to proceed assuming all negotiations with Daegu Metropolitan City are complete in the first quarter of 2012, at which time the full value of the contract would be booked. Commercial operation of the new steam generator is scheduled to begin by the end of 2014.

Foster Wheeler will design one CFB steam generator for the project. The CFB steam generator will be designed to burn 380 tons/day of refuse derived fuel (RDF) while meeting applicable environmental regulatory requirements.

"Korea has been an exceptional market for Foster Wheeler's world class CFB steam generators," said Gary Nedelka, Chief Executive Officer of Foster Wheeler Global Power Group. "This project represents the opportunity for both electricity production as well as an alternative to landfilling and is another example of how the fuel flexibility of a CFB steam generator can provide environmentally friendly solutions for owners. Further, this award underscores the confidence of GS and Daegu Municipality in our ability to deliver a quality product for engineering such challenging fuel."

Published 03/01/2012

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Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 12,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company's Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company's Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland.

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