Foster Wheeler Announces Strategic Partnership with PetroAlgae to Create End-to-End Biomass-to-Fuel Solutions

09/12/2009


ZUG, Switzerland, Dec 10, 2009 (BUSINESS WIRE) -- Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has signed a Memorandum of Understanding with PetroAlgae (OTCBB: PALG) for engineering services to be performed in conjunction with PetroAlgae's micro-crop biomass technology, which allows for the production of dry biomass at a very large scale.

Foster Wheeler intends to work with PetroAlgae to develop commercial solutions that will allow existing oil refineries to convert micro-crop biomass into fuels that are functionally compatible with petroleum-based fuels in the current market. For refineries, the solutions are expected to provide strong economics from the large-scale processing of PetroAlgae's micro-crop biomass into green fuels. The two firms will intend to create end-to-end market solutions for the large-scale production of green gasoline, diesel, jet fuel and specialty chemicals.

"Our company has long been a global leader in engineering solutions to some of the world's major energy problems" said Umberto della Sala, president and chief operating officer of Foster Wheeler AG. "We believe we can play a significant role in helping refineries realize the potential of processing biomass into green fuels. We are excited about the opportunity to work with a dynamic organization like PetroAlgae and to have the opportunity to develop biomass conversion solutions that will help the refinery industry realize the potential of green fuels."

"Foster Wheeler's engineering and refining expertise coupled with our commercial scale biomass technology will provide an opportunity to create end-to-end market solutions for optimizing the conversion of large quantities of biomass into large quantities of green fuels," said Dr. John Scott, chairman of PetroAlgae. "Through this partnership, we expect to further optimize our fuel and petroleum replacement output, more rapidly integrate with current refinery systems and realize the benefit of Foster Wheeler's ability to bring innovation to the process. These solutions offer the promise of transforming sunlight into fuels, thereby providing countries around the world with yet another option on the path to sustainable and clean energy independence."

PetroAlgae Inc. (OTCBB: PALG) is a leading alternative energy company that licenses a commercial micro-crop technology system to produce clean fuel and food in an environmentally sustainable manner. Through a modular, flexible design construction, PetroAlgae enables a near-continuous growing and harvesting process of a wide variety of micro-crops suited to local climates, ensuring maximum growth rates. PetroAlgae's globally scalable system produces high-value protein as well as a cost-effective alternative to fossil fuels, while absorbing carbon dioxide from greenhouse gas emissions. The Florida-based company expects to establish first-mover advantage in the biofuels industry and offers a path to sustainable and clean energy independence while promoting local job growth. For further information on PetroAlgae, please visit http://www.petroalgae.com

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs over 14,000 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, 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 are in Clinton, New Jersey, USA. For more information about Foster Wheeler, please visit our Web site at http://www.fwc.com.

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Foster Wheeler AG news releases may contain forward-looking statements that are based on management's assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company's expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company's most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company's redomestication, further deterioration in the economic conditions in the United States and other major international economies, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company's liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing competition by non-U.S. and U.S. companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

SOURCE: Foster Wheeler AG

Foster Wheeler AG
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