Foster Wheeler Awarded $53 Million Biomass Boiler Contract For Landmark UK Project.HAMILTON, Bermuda -- Foster Wheeler Ltd. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : FWHLF) announced today that its subsidiary Foster Wheeler Energy Limited has been awarded a $53 million contract by SembCorp Utilities UK Limited. SembCorp is creating a new stand-alone biomass-fueled power station at its Wilton International site on Teesside, northeast England. The project, known as "Wilton 10," has a total investment cost of $114 million, and is one of the UK's largest biomass renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. projects. The contract will be included in Foster Wheeler's first-quarter 2005 bookings. "Foster Wheeler is pleased to be involved in this important biomass-to-energy project," said Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited. "We are bringing together key strengths from within the company's global organization. Our project execution strategy combines the experience of our Engineering and Construction Group's Teesside office, which has an impressive project execution track record, with Foster Wheeler Global Power Group's proven bubbling fluidized-bed biomass combustion technology to deliver a total service to SembCorp to meet their business requirements." Foster Wheeler, as the main boiler contractor, will design, engineer, construct and commission the complete boiler island, including the flue gas Flue gas is gas that exits to the atmosphere via a flue, which is a pipe or channel for conveying exhaust gases from a fireplace, oven, furnace, boiler or steam generator. Quite often, it refers to the combustion exhaust gas produced at power plants. treatment system. The plant will burn green and recycled wood and will be required to meet the emission limits of the EU's Large Combustion Plant Directive and Waste Incineration Directive The Waste Incineration Directive, more formally Directive 2000/76/EC of the European Parliament and of the Council of 4 December 2000 on the incineration of waste, is a Directive issued by the European Union and relates to standards and methodologies required by Europe for the . It will also be subject to a Best Available Techniques assessment subject to review by the Environment Agency of the UK. The power plant will burn around 300,000 tonnes of wood a year. This will come from a variety of sources, including specially grown energy crops, forestry logs, sawmill sawmill, installation or facility in which cut logs are sawed into standard-sized boards and timbers. The saws used in such an installation are generally of three types: the circular saw, which consists of a disk with teeth around its edge; the band saw, which chips and recycled timber. The Wilton 10 project is in response to a government call, following the 1997 Kyoto Agreement, for more energy throughout the UK to be generated from renewable sources. Commercial operation of the plant is expected in the second quarter of 2007. The boiler will be designed to achieve maximum efficiency using high steam conditions and the new plant will supply 30 MWe of electricity, enough to power around 30,000 homes. This will be in addition to the 197 MWe of electricity being supplied from the existing main power station. "We were impressed with Foster Wheeler's track record in fluidized-bed biomass combustion. By utilizing their local office in Teesside, Foster Wheeler will be able to manage the execution of the project in close collaboration with SembCorp," commented Tony Lewis, project director, SembCorp Utilities UK Limited. "The conversion of biomass to energy for heat and power is a long tradition in the Scandinavian pulp and paper industry The global pulp and paper industry is dominated by North American (United States, Canada), northern European (Finland, Sweden) and East Asian countries (such as Japan). Australasia and Latin America also have significant pulp and paper industries. . Since the 1970s, Foster Wheeler has supplied this industry with fluidized-bed boilers, gathering an immense experience base of different biomass fuels and demanding industrial requirements for reliability. We are pleased to be able to take advantage of this experience with the Foster Wheeler Finnish boiler delivery," continued Mr. Lewis. Additional information on the boiler is available from: http://www.fwc.com/enewsroom/docs/SembCorpAttchmnt.pdf Notes to Editors: 1. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG LNG (liquefied natural gas): see under natural gas. and gas-to-liquids, petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. , chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey
Clinton is a Town in Hunterdon County, New Jersey on the South Branch of the Raritan River. As of the United States 2000 Census, the town population was 2,632. , USA. For more information about Foster Wheeler, visit our Web site at www.fwc.com. 2. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 our expectations regarding revenues (including as expressed by our backlog), liquidity, the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. 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 under the heading "Business--Risk Factors of the Business" in the company's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the following, could cause the company's business conditions and results to differ materially from what is contained in forward-looking statements: changes in the rate of economic growth in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other major international economies, changes in investment by the power, oil and gas, pharmaceutical, chemical/petrochemical and environmental industries, changes in the financial condition of our customers, changes in regulatory environment, 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, currency fluctuations, war and/or terrorist attacks on facilities either owned or where equipment or services are or may be provided, outcomes of pending and future litigation, including litigation regarding our liability for damages and insurance coverage for asbestos exposure, protection and validity of patents and other intellectual property rights, increasing competition by foreign and domestic companies, changes in financial markets, compliance with debt covenants, monetization Monetization The securitization of the gross revenues of a contract. of certain power systems facilities, implementation of our restructuring plan, recoverability of claims against customers and others, changes in estimates used in 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 our control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us. |
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