Foster Wheeler Awarded Limited Notice to Proceed for Circulating Fluidized-Bed Steam Generator in Korea

Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Power Group has been given a limited notice to proceed by GS Engineering and Construction for the design of a circulating fluidized-bed steam generator for the Green Energy Centre BTO (Build, Transfer, Operate) Project of Daegu Metropolitan City, South Korea, the owner and developer of the project. The terms of the agreement were not disclosed, and the value of the LNTP will be included in the company's fourth-quarter 2011 bookings. Foster Wheeler hopes to finalize the contract and to receive full notice to proceed assuming all negotiations with Daegu Metropolitan City are complete in the first quarter of 2012, at which time the full value of the contract would be booked. Commercial operation of the new steam generator is scheduled to begin by the end of 2014. Foster Wheeler will design one CFB steam generator for the project. The CFB steam generator will be designed to burn 380 tons/day of refuse derived fuel (RDF) while meeting applicable environmental regulatory requirements.