SNG pilot plant construction in China gets cooperation agreement

Source:Foster Wheeler AG

Foster Wheeler has signed a cooperation agreement with Clariant International and Wison Engineering to build the pilot plant. Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has signed a cooperation agreement with Clariant International AG (“Clariant”) and Wison Engineering Ltd (“Wison Engineering”) to build a pilot plant to demonstrate Foster Wheeler’s VESTA substitute natural gas (SNG) technology. The pilot plant will be constructed in China and is planned to go on-stream during 2013.

Under this agreement, Wison Engineering will provide engineering and construction services, Foster Wheeler will license the technology, and Clariant will supply the proprietary developed catalyst. The plant will be operated by Wison Engineering.

The cooperation agreement also sets out a framework for long-term cooperation to deliver and build methanation plants in China based on VESTA technology.

Foster Wheeler’s VESTA SNG technology is a novel methanation technology designed to produce SNG from synthesis gas obtained from gasification of either coal or petroleum coke. The VESTA technology is based on once-through operation with no recirculation, avoiding expensive compressors. The technology is based on a maximum operating temperature of 550°C, avoiding any metal dusting formation and enabling relatively simple reactors to be used. The technology can operate with syngas from any commercial gasification technology. The VESTA technology is designed to be simple and safe to operate and to be implemented at a low total investment cost.

“We are extremely pleased to announce this cooperation agreement with Clariant and Wison Engineering,” said Umberto della Sala, president and chief operating officer, Foster Wheeler AG. “Focused on China, the world’s largest SNG market, this agreement is an important first step in establishing our ability to address the global SNG market.”

Stefan Heuser, General Manager Clariant Catalysts business said, “This exciting technology provides optimized solutions to secure future clean energy in China. We are very pleased to have Wison Engineering with its outstanding reputation and impressive recent development to join Clariant and Foster Wheeler as our strong partner in China.”

Liu Haijun, Senior Vice President of Wison Engineering, said, “We’re very glad to cooperate with Foster Wheeler and Clariant. By leveraging Foster Wheeler’s global expertise and technological strength as well as Clariant’s strong innovation in catalyst technology, we’ll continue to build up our capabilities in coal-to-chemical sector and will be well positioned to seize the favorable market opportunities in the domestic and overseas markets.”

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 13,000 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 Reading, United Kingdom. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 the company employed a total workforce of 21,202. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings. Clariant’s corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio.

Wison Engineering Ltd is an indirect non-wholly owned subsidiary of Wison Engineering Services Co. Ltd.(HKEx: 02236), which is based in Shanghai and specializes in the provision of construction and technical services for engineering installations in the petrochemicals, coal-to-chemicals and oil refining industries. For more information about Wison, please visit the web site at www.wison.com.

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