Foster Wheeler Wins FEED Contract for Doosan's Gasification Plant in South Korea

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Researched by Industrial Info Resources (Sugar Land, Texas)--Foster Wheeler Italiana SpA (Milan, Italy), a leading engineering and construction company in Italy and a subsidiary of Foster Wheeler Limited (NASDAQ:FWLT) (Clinton, New Jersey), has secured a front-end engineering and design (FEED) contract from Doosan Heavy Industry & Construction Company Limited (SEO:034020) (Changwon, South Korea) to build a new gasification island in South Korea. The plant will be constructed at the site of an existing coal-based thermal power plant. The Korean government is partially investing in the project as a research and development initiative. Doosan is a South Korean conglomerate with business interests ranging from the development of heavy industrial infrastructure and chemical-processing units to power generation through nuclear and thermal plants.

According to the agreement, Foster Wheeler will offer technical services in setting up the gasification plant, which will be based on Shell (NYSE:RDS.A) (The Hague, Netherlands) technology. Doosan will be responsible for engineering, procurement, and construction (EPC) activities involved in building the gasification island at the coal-fired integrated gasification combined-cycle (IGCC) plant. During the EPC phase of the project, Foster Wheeler will carry out the FEED work, extend support in procuring long-lead items, generate a detailed engineering-driven capital cost estimate, and offer technical training and support services. The IGCC plant is slated for commissioning by the end of 2014.

Foster Wheeler has not yet announced the contract value of the order. However, the company is expected to include the deal as part of its order bookings for the 2009-10 fiscal year. The company has extensive experience in constructing gasification plants and IGCC plants based on various feeds. Coal-fired IGCC technology aligns with the products offered by Foster Wheeler and will also help produce cleaner power.

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