CLINTON, N.J., Jan. 8, 2001 (BUSINESS WIRE)—Foster Wheeler Corporation (NYSE:FWC) announced that Jamtkraft AB, a Swedish power company, has awarded a contract to its Finnish subsidiary, Foster Wheeler Energia Oy, for a boiler island at a new power plant in Lugnvik, Ostersund.

Under the terms of the turnkey contract, valued at approximately $29 million, Foster Wheeler Energia Oy will supply a 125 MW biofuel-fired circulating fluidized-bed boiler (CFB) with boiler house, fuel handling, complete automation and electrification and flue-gas cleaning including condensing plant.

The boiler island will be the heart of a new Jamtkraft power plant to be built adjacent to two existing Foster Wheeler-supplied district heating boiler plants. When operating, it will produce 45 MW of electricity and 80 MW of heat for the Ostersund district.

The project is scheduled for completion in 2002. A spokesperson for Foster Wheeler said that, when commercial operation begins, the new facility will have an estimated biofueled heat output of 170 GWh a year. This is expected to reduce considerably the amount of oil currently used to produce heat for the Ostersund district, he added. Swedish government energy authorities will fund about $13 million for the project.

Jamtkraft is majority owned by the community of Ostersund. The Swedish Vattenfall AB is a minor shareholder of the company. Vattenfall is one of the largest energy groups in the Nordic countries and accounts for over 20 percent of electricity sales in the region.

Foster Wheeler Corporation is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research, plant operations and environmental services. The corporation’s headquarters are at Clinton, N.J. For more information about Foster Wheeler, visit our web site at www.fwc.com.

Foster Wheeler Energia Oy in Finland is an operating company of United States-based Foster Wheeler Energy International, Inc., which designs and fabricates steam-generating equipment for electric utilities, industrial users and public authorities and is the leading global supplier of CFBs.