ZUG, SWITZERLAND - Aug. 28, 2012 - Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by Samsung C&T ECUK Ltd (Samsung), a wholly owned subsidiary of Samsung C&T Korea, to participate in a comprehensive update of the Front-End Engineering Design (FEED) developed previously by a third party for 2Co Energy Limited's (2Co) Don Valley Power Projectin Stainforth, Yorkshire, UK. Samsung C&T is the contractor appointed by 2Co to execute the overall FEED update and is also the nominated engineering, procurement and construction contractor for this carbon capture power project.
The Foster Wheeler contract value was not disclosed and will be included in the company's third-quarter 2012 bookings.
Foster Wheeler will undertake the majority of the process engineering, process integration and FEED update work for inside the battery limits and will manage the process licensors' technical scope for the gasification and acid gas removal units. Foster Wheeler will also develop the key project philosophy documents and project standards for the overall project. Foster Wheeler's scope of work is scheduled for completion in the first-quarter of 2013. The project is expected to start operation by the end of 2016.
The Don Valley Power Projectis part of a Carbon Capture, Utilisation and Storage scheme (CCUS) being developed by 2Co, comprised of a 900 MW installed capacity (650 MW net export capacity) Integrated Coal Gasification Combined Cycle (IGCC) power plant, CO2 transportation, and storage combined with Enhanced Oil Recovery (EOR). The plant is designed to capture, as CO2, approximately 90 percent of the carbon in the fossil fuel. The CO2 will then be compressed and transported via an underground pipeline being developed by National Grid. This pipeline will transport the CO2 to the North Sea where it will be injected into selected oil fields. These oil fields will provide storage for the CO2, and the EOR enabled by the injection of CO2 means a larger proportion of the oil reserves in those fields will be recovered than would otherwise be possible through more conventional methods.
Foster Wheeler has already been appointed by 2Co Energy under a separate contract as a project management consultant for this project, initially until a final investment decision, expected at the end of 2013.
Foster Wheeler AGis a global engineering and construction company 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 Groupdesigns 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 Groupis 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 http://www.fwc.com.
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Foster Wheeler AGnews 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 theU.S. Securities and Exchange Commissionand 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 toGeneva, Switzerland; the benefits, effects or results of our strategic renewal initiative; further deterioration in global economic condition; changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries; changes in the financial condition of our 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 our global operations; currency fluctuations; war, terrorist attacks and/or natural disasters affecting 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 global competition; compliance with debt covenants; recoverability of claims against customers and others by the Company and claims by third parties against the Company; and changes in estimates used in our 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 or furnished with theSecurities and Exchange Commission.
Source:Foster Wheeler AG
Media: United States Julie Stanisz, 908-730-4047 [email protected] or United Kingdom Anne Chong, +44 (0) 118 913 2106 [email protected] or Investor Relations: Scott Lamb, 908-730-4155 [email protected] or Other Inquiries 908-730-4000 [email protected]
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