Foster Wheeler Signs Agreement with Fundacion Ciudad de la Energia for an Oxycombustion...

HAMILTON, Bermuda -- Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that a Spanish subsidiary of its Global Power Group has signed an agreement with the Fundacion Ciudad de la Energia (CIUDEN) for the technological development of an oxycombustion process and carbon dioxide (CO2) capture solution

The signing of an agreement in August 2007 authorizes Foster Wheeler to perform the initial phase of this project. The terms of the agreement were not disclosed.

In the initial phase, Foster Wheeler will provide engineering services and technical specifications and will review CIUDEN's conceptual and basic design for the combustion island of the facility. The combustion island will incorporate both pulverized-coal (PC) and circulating fluidized-bed (CFB) technology. Operation of the facility is scheduled for mid-2009.

"We are pleased to be involved with this project, which is a good example of the industry's proactive efforts to address CO2 emissions from coal-fired power plants," said Eric Svendsen, chief executive officer, Foster Wheeler Energia, S.A. "The CIUDEN platform will allow us to advance both PC and CFB technologies in the area of oxycombustion for carbon capture and will also provide for further technological research and development of possible solutions to other energy and environmental concerns."

The CIUDEN board said that it "wanted to work with Foster Wheeler because of its outstanding coal-fired boiler technologies. In addition, Foster Wheeler has full capabilities in both power and process plant engineering and a major engineering center in Madrid, all of which are very important for our foundation."

CIUDEN is a Spanish foundation incorporated by the Ministry of Education and Science, the Ministry of Industry, Trade and Tourism and the Ministry of the Environment.

Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the upstream oil and gas, LNG and gas-to-liquids, refining, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

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