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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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Foster Wheeler Awarded Study Contract by ETI to Assess Flexible Power Generation Systems in the UK

Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has been awarded a study contract by the Energy Technologies Institute (ETI).

The five-month-long study will assess the economics of flexible power generation systems which involve the production of hydrogen from coal, biomass or natural gas, the intermediate storage of hydrogen (for example in underground salt caverns) and the production of power in flexible turbines. Foster Wheeler will execute the study in collaboration with the British Geological Survey.

The value of Foster Wheeler’s contract was not disclosed and will be included in the company’s first-quarter 2013 bookings.

The study, commissioned and funded by the ETI, will look to map suitable hydrogen storage salt cavern sites in and around the UK. The sites, which tend to be located inland or up to 25 miles off the UK coastline, need to be of sufficient size, depth, location and quality to be considered for hydrogen storage.

According to ETI, flexible power generation systems, such as those to be studied, could provide a valuable contribution to the future energy mix in the UK, filling the gap between base-load nuclear plants and renewable power generation. Such systems would also capture and store carbon dioxide which would otherwise be released into the atmosphere.

This study is part of the ETI’s Carbon Capture & Storage (CCS) Programme and is intended to help the ETI develop a better understanding of the requirements for such energy systems and a more realistic and robust dataset of costs and efficiencies.

Andrew Green, ETI CCS Programme Manager, said, “ETI modelling shows that flexible power generation systems comprising hydrogen generation with CCS, intermediate hydrogen storage (particularly using salt caverns) and flexible turbines are potentially attractive components in any future UK energy system. This project is a first step in a long journey, which could ultimately see such systems as a key part of a future low carbon, flexible and affordable energy system. If successful, the benefits could potentially be huge.”

Umberto della Sala, President and Chief Operating Officer, Foster Wheeler AG, said, “Foster Wheeler has been working with ETI for four years and this latest award confirms ETI’s confidence in our technical expertise in the field of carbon capture and storage, and our ability to deliver high-quality studies. We are delighted to be contributing to the development of a low-carbon energy future in the UK.”

Foster Wheeler AG is 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 Group designs 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 Group is 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 www.fwc.com.

Safe Harbor Statement

Foster Wheeler AG news 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 the U.S. Securities and Exchange Commission and 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 to 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 the Securities and Exchange Commission.

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