Coal, Wind

Foster Wheeler awarded two global contracts

6 November 2006 — In two separate announcements today, Foster Wheeler Ltd. published details on contracts in Vietnam and Italy.

Foster Wheeler North America Corp., an operating unit of its Global Power Group, has been awarded a contract by Harbin Power Engineering Company, Ltd. (HPE) for the design of two 545 tons per hour sub-critical circulating fluidized-bed (CFB) steam generators for the Cam Pha Power Plant Power Project in Cam Pha, Vietnam.

The contract, valued at approximately $12 million, calls for Foster Wheeler to provide HPE, a subsidiary of Harbin Power Plant Equipment Group Corporation, with two 150 MWe CFB boilers to be used at the Cam Pha power station. The two boilers are designed to use waste anthracite and slurry and will provide steam to a single 300 MWe reheat turbine.

Foster Wheeler also announced that its Milan-based subsidiary Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded an engineering, procurement and construction (EPC) contract by Voreas S.r.l. for a new wind farm at Pietramontecorvino, in Southern Italy. Foster Wheeler Italiana owns a 50 percent equity interest in Voreas. The terms of the contract award, which will be included in Foster Wheeler’s third-quarter 2006 bookings, were not disclosed.

The new 48 MW wind farm will be comprised of 24 wind turbine generators. The new wind farm is expected to be completed by the end of 2007. The plant is expected to sell its power output in the new liberalized Italian power market and is also expected to sell Green Certificates for the first 12 years of operation, in accordance with recently enacted Italian legislation aimed at encouraging electricity production from renewable sources.

A Green Certificate is an official record proving that a specified amount of electricity has been generated from renewable sources. Green certificates represent the environmental value of renewable energy production and can be traded separately from the energy produced.