Foster Wheeler Awarded Contract For Cooperation On A Utility Circulating Fluidized-Bed Steam Generator In Korea

Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Power Group has been awarded a contract by Doosan Heavy Industries & Construction Co., Ltd. for cooperation in the design of a circulating fluidized-bed (CFB) steam generator for the Yeosu Thermal Power Plant 1 Project for Korea South East Power Co., Ltd. (KOSEP).

Doosan Heavy Industries & Construction will supply the major equipment, including the CFB boiler and turbine generator for the Yeosu 1 project which will replace an existing heavy-oil fired unit.

Foster Wheeler will provide the design review of the 350 MWe (gross megawatt electric) CFB steam generator for Doosan Heavy Industries & Construction Co., Ltd., Foster Wheeler’s licensee for Utility CFB technology in the region.

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 third-quarter 2012 bookings. Commercial operation of the new steam generator is scheduled for the first quarter of 2015.

“We are gratified by the way in which high-end utility clients around the world continue to embrace Foster Wheeler’s advanced CFB technology,” said Tomas Harju-Jeanty, President and Chief Executive Officer of Foster Wheeler Energia Oy Group. “This is our second contract for KOSEP for repowering of an older utility plant – and stands as yet another example of the way in which the fuel flexibility and environmental performance of the CFB make it a natural choice for many utility clients.”

“With the growing use of low-quality coal, of which there are large reserves, demand for CFB boilers is increasing not only in Korea but also in foreign countries,” said Dongsoo Suh, head of the Power Business Group at Doosan Heavy Industries & Construction. “The Foster Wheeler CFB eco-friendly technology is highly efficient in reducing fuel costs due to its ability to use these low-quality coals as fuel.”

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