FWLT to Improve Sweden Environment

Foster Wheeler AG’s (FWLT - Analyst Report) Global Power Group, through its subsidiary, received a contract from a municipality-owned energy supplier in the Southern region of Sweden, Lunds Energi. As per the contract, a 35 MWe (gross megawatt electric) biomass-fired circulating fluidized-bed (CFB) boiler island will be designed, supplied and manufactured by Foster Wheeler.

The companies did not disclose the terms of the contract, which will be included in the first-quarter 2012 bookings of Foster Wheeler. The company has received notice to start work on the contract. The new steam generator is expected to start operating commercially in the second quarter of 2014.

The project involves construction of a new combined heat and power plant in place of an existing old equipment operating on fossil fuels. Foster Wheeler will design and deliver the steam generator and auxiliary equipment, as well as erect and commission the boiler island. The steam generator will be designed to burn 100% bio fuel with up to 50% demolition wood.

Foster Wheeler’s CFB technology is an excellent solution for biomass power generation as it uses a number of renewable and waste fuels. Through this, the company will be able to provide a better environment.

Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States.  The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. The major competitors of Foster Wheeler are Fluor Corporation (FLR - Analyst Report) and Jacobs Engineering Group Inc. (JEC - Analyst Report).

Currently, we are maintaining a Zacks #5 Rank (short-term Strong-Sell recommendation) on Foster Wheeler.

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