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Foster Wheeler AG recently announced the receipt of a heat recovery steam generator (HRSG) contract by its subsidiary – Global Power Group – from Spain-based electric utility company, Iberdrola. The company will record the deal in its third-quarter 2014 bookings.

Per the agreement, Foster Wheeler will be designing a HRSG unit for installation at Iberdrola’s forthcoming cogeneration plant at the Kimberly Clark de Mexico Ramos Arizpe Facility in Coahuila, Mexico. Apart from building the unit, the company will act as an advisory body aiding the set up and initiation of the unit.

The heat recovery steam generator will feature a dual pressure level design that will allow it to generate steam without depending on the combustion turbine operation. Notably, the unit will be integrated with a GE LM6000PH combustion gas turbine and is expected to start commercial operations in the first quarter of 2016.

Foster Wheeler’s heat recovery steam generators are not only thermally efficient but offer increased reliability and low maintenance.

Last week, the company received a couple of heat recovery steam generator contracts for its Global Power Group licensee - BHI Co., Ltd. The contracts came from Japan-based Mitsubishi Corporation (MSBHY) and Daewoo Engineering & Construction headquartered in Korea.

Foster Wheeler currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector worth considering at the moment include Willdan Group Inc. (WLDN) which sports a Zacks Rank #1 (Strong Buy) and AO Smith Corp (AOS - Snapshot Report) with a Zacks Rank #2 (Buy).

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