Foster Wheeler, E.ON in waste to energy contract

Clinton, N.J.-based Foster Wheeler (Nasdaq: FWLT) announced today that it received a contract from Duesseldorf, Germany's E.ON (OTC: EONGY) for the supply of a waste to energy boiler for a combined heat and power plant in Sweden.

Foster Wheeler said the generator using its 84 thermal megawatt circulating fluidized-bed boiler island will divert waste headed for landfills and convert it into steam and electricity. Financial terms of the contract were not disclosed.

"With more than 300 installations worldwide, Foster Wheeler's CFB technology is an excellent choice for clients and their customers who are thinking progressively about power generation," said Tomas Harju-Jeanty, CEO of Foster Wheeler Energia.

Foster Wheeler said its circulating fluidized-bed boiler systems have inherently low levels of sulfur oxide and nitrogen oxide emissions when compared with traditional incineration or older burn technologies.

Karin Jarl-Månsson, CEO of E.ON Värme Sweden, said today's deal is the start of the company's €1 billion investment plan in combined heat and power.

"District heating is an important cornerstone in the production of more efficient energy and the reduction of environmental effects."

Foster Wheeler said the new boiler will be designed to burn refuse composed of sorted household and industrial wastes and that it will produce electricity for the local grid and provide heat and process steam to an adjacent industrial plant. It's expected to start operations in the fall of 2010.