Foster Wheeler Awarded CFB Boiler Contract for CO2 Capture Development Plant in Spain

04/03/2010


ZUG, Switzerland, Mar 05, 2010 (BUSINESS WIRE) -- Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Power Group has been awarded a contract by Fundación Ciudad de la Energía (CIUDEN), an institution created by the Spanish Government, for the design and supply of a circulating fluidized-bed (CFB) unit for testing Foster Wheeler's Flexi-BurnTM carbon capturing CFB technology. This unit will be part of CIUDEN's Integrated Carbon Capture and Sequestration (CCS) Technology Development Plant (TDP) located near Endesa's Compostilla power plant in Ponferrada, Spain.

Foster Wheeler has received a full notice to proceed on this contract. The terms of the agreement were not disclosed, and the contract value will be included in the company's first quarter 2010 bookings. The unit is expected to be operational by the second half of 2011 with testing programs expected to follow shortly thereafter.

Foster Wheeler will design and supply the 30 MWth Flexi-BurnTM CFB test unit and someauxiliary equipment and provide site advisory services for the project.

Flexi-BurnTM is Foster Wheeler's version of carbon capture technology based on oxygen combustion (commonly referred to as "oxy-combustion" or "oxy-fuel") for coal plants. Unlike, pre-combustion (IGCC plant) or post-combustion technologies (amine CO2 scrubber placed behind conventional coal boilers), oxygen combustion technologies allow the boiler to produce a CO2 rich flue gas, thus reducing the need for expensive and energy-intensive CO2 gas separation equipment.

The CIUDEN unit will be designed to test burn a wide range of domestic (anthracite) and imported coals, as well as biomass. One of the objectives of the incorporation of this unit into the TDP is to validate Foster Wheeler's Flexi-BurnTM CFB technology at the required scale before proceeding to a possible full-scale demonstration plant.

"Foster Wheeler has been developing Flexi-burnTM CFB technology for over four years and, in collaboration with CIUDEN's Technological Development Plant, we are one step closer to bringing this promising technology to market," said Eric Svendsen, chief executive officer of Foster Wheeler Energia, S.L. in Madrid. "Developing a practical carbon capture solution for CFB technology would allow our fuel-flexible CFB's to significantly contribute to reducing future world carbon emissions."

The CIUDEN board said it "has full confidence with Foster Wheeler's ability to deliver the best quality CFB boiler. Foster Wheeler has demonstrated its state-of-the-art CFB boiler technology as a world leader, proven in large-scale applications, providing fuel flexibility and environmental compliance and we are pleased to have selected them for the CIUDEN TDP project."

Fundación de la Energía (CIUDEN)is an institution created by the Spanish Government in 2006 to put into practice strategic objectives on CCS. Its main objectives are R&D of efficient, cost effective and reliable technologies through the design, operation and construction of a large-scale integrated Technology Development Plant (TDP) for Capture and Geological Storage of CO2. CIUDEN is playing an outstanding role in the validation and deployment of CCS technologies worldwide.

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 13,000 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 office is in Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site at http://www.fwc.com.

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SOURCE: Foster Wheeler AG

Foster Wheeler AG
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