Foster Wheeler Awarded Contract for Four 550 MWe Supercritical Circulating Fluidized-Bed Steam Generators in Korea

Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Power Group has been given the full notice to proceed (FNTP) by Hyundai Engineering and Construction for the design and supply of four 550 MWe (gross megawatt electric) supercritical circulating fluidized-bed (CFB) steam generators for the Samcheok Green Power Project for Korea Southern Power Co., Ltd. (KOSPO), the owner and developer of the project.

Foster Wheeler is designing and supplying four supercritical 550-MWe circulating fluidized-bed (CFB) steam generators for the Samcheok Green Power project for Korea Southern Power Co. Shown here is an illustration of one of the four units. (Photo: Business Wire)

The terms of the agreement were not disclosed, and the value of the FNTP will be included in the company’s second-quarter 2011 bookings. Foster Wheeler was awarded a limited notice to proceed on the contract in May. Commercial operation of the new steam generators is scheduled to begin in June 2015.

Foster Wheeler will design and supply four 550 MWe advanced vertical-tube, once-through supercritical CFB steam generators and provide site advisory services for the project. The CFB steam generators will be designed to burn coal mixed with biomass while meeting applicable environmental regulatory requirements.

After more than a year of careful study and evaluation, KOSPO selected the Foster Wheeler CFBs over conventional pulverized coal (PC) technology due to its many benefits ranging from fuel procurement flexibility, low emissions without requiring costly add-on flue gas desulfurization equipment and the proven track record of Foster Wheeler’s supercritical CFBs.

“We welcome the opportunity to be a part of this state-of-the-art power plant,” said Tomas Harju-Jeanty, President and Chief Executive Officer of Foster Wheeler Energia Oy Group. “The plant will utilize the world’s most advanced CFB steam generator technology, representing a culmination of over 30 years of CFB technology development by Foster Wheeler.”

“KOSPO is fully confident in Foster Wheeler’s state-of-the-art CFB technology,” said Ho Ki Nam, President and CEO of KOSPO. “I believe the Samcheok project will become a great demonstration of Foster Wheeler’s supercritical CFB boilers in Asia, as well as in other parts of world.”

“Upon contract signing, Hyundai E&C and Foster Wheeler began mutually working toward the successful completion of the Samcheok Green Power Project,” said S.H. Seo, Deputy Chief Purchase Officer of Hyundai E&C. “We have no doubt that both companies can go on to expand our strong partnership starting with this environmentally friendly green power project.”

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. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

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