Foster Wheeler Wins Contract for New Power Plant

Foster Wheeler Ltd's Finnish subsidiary, Foster Wheeler Energia Oy, and its Polish subsidiary, Foster Wheeler Energia Polska Sp. z o.o., both part of Foster Wheeler's Global Power Group, have received Full Notice To Proceed (NTP) from Poland's Poludniowy Koncern Energetyczny (PKE) for the design, supply and erection of the circulating fluidized-bed (CFB) boiler island for a new 460 MWe power plant at Lagisza in southern Poland. The total investment cost for the new power plant is approximately $550 million.

The contract is valued at approximately $200 million, of which $175 million will be included in Foster Wheeler's fourth-quarter 2005 bookings. Foster Wheeler has already undertaken pre-NTP phase activities, which included engineering and procurement services as well as placing purchase orders for pressure parts materials. A booking of approximately $25 million was included in the company's third-quarter 2005 bookings, relating to these pre-NTP activities.

"This boiler island represents a double world-first: the world's largest CFB boiler and the world's first supercritical CFB unit," said Bernard H. Cherry, chief executive officer of Foster Wheeler's Global Power Group. "The project marks a crucial step forward in bringing our CFB boiler technology to utility scale. By integrating the supercritical steam cycle and once-through technology into our world-leading CFB technology, we will be providing PKE a cutting edge engineering solution for the clean and efficient combustion of solid fuel. This advanced technology significantly increases opportunities for power generating industries to take full advantage of the substantial domestic coal reserves held by many industrialized nations."

The new Lagisza unit, due for start-up at the beginning of 2009, will be built alongside PKE's existing 840 MWe power station at Lagisza, and is part of an ongoing program by PKE, one of Poland's largest electricity utilities, to replace outdated capacity with modern, high-efficiency, environmentally friendly technologies.

"This project will be another important investment in our power plants to be executed by Foster Wheeler. I expect this cooperation will be as successful and beneficial to PKE and its customers as previous projects," said Jan Kurp, president and chief executive officer of PKE.

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Posted 24/01/06

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