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.
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