Foster Wheeler Wins Feed from E.ON UK plc for CO2 Capture and Compression Plant

Foster Wheeler AG (Nasdaq: FWLT) announced that a consortium, including its Global Engineering and Construction Group, has received an order from E.ON UK plc to support the front-end engineering design (FEED) for a post-combustion carbon dioxide (CO2) capture and compression plant proposed as part of E.ON’s planned new supercritical coal-fired power station in Kent, England, UK. Foster Wheeler’s consortium partner for the carbon dioxide capture element of the project is Mitsubishi Heavy Industries, Ltd. (MHI) of Japan.

E.ON is planning to replace its existing coal-fired units at Kingsnorth Power Station with two new high-efficiency 800 megawatt coal-fired units using the latest supercritical technology, which E.ON has said will produce power from coal more efficiently than ever before in the UK. The planned CO2 capture plant will be designed to separate and capture CO2 from flue gas generated by the new coal-fired units, enabling the CO2 to be transported and stored permanently within a depleted gas reservoir under the North Sea.

The Foster Wheeler contract value for this project was not disclosed and will be included in the company’s third-quarter 2010 bookings.

E.ON UK is one of two groups competing in the UK Government’s carbon capture and storage (CCS) competition to build one of the world’s first industrial-scale CCS demonstration plants. The UK Government’s Department of Energy and Climate Change has recently confirmed E.ON’s progression to the next stage comprising a FEED study.

The overall FEED activities will further develop the proposed CO2 capture and compression project at Kingsnorth and will involve engineering and design studies following which the competition winner will be selected by the UK Government. Foster Wheeler and MHI have already completed the pre-FEED.

“We are delighted to continue to play a key role in this landmark project, planned to include one of the world’s first industrial-scale plants capturing CO2 from flue gases and the UK’s first supercritical units,” said Umberto della Sala, president and chief operating officer, Foster Wheeler AG. “We believe that the combination of our expertise in delivering innovative, technically optimized engineered solutions and MHI’s leading CO2 recovery technology will continue to add significant value for E.ON as it progresses in its objective to win this competition.”

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 www.fwc.com.

Safe Harbor Statement

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 or the relocation of our principal executive offices to Geneva, Switzerland; 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 generation 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.

Foster Wheeler (NASDAQ:FWLT)
Historical Stock Chart
From Jun 2024 to Jul 2024