Foster Wheeler Ltd’s Finnish subsidiary has been awarded a contract by NSE Biofuels Oy Ltd. for a circulating fluidized-bed (CFB) biomass gasifier to be located in Varkaus, Finland.

The plant will utilize Foster Wheeler’s fuel-flexible circulating fluidized-bed gasification technology to convert a wide spectrum of biomass into a clean syngas to be used in a gas to liquids (Fischer-Tropsch) process to produce feedstock for renewable diesel from biomass/wood residue-based gas.

NSE Biofuels Oy Ltd. is a 50:50 joint venture owned by Stora Enso Oyj and Neste Oil Corporation and the gasification and syngas cleaning system is part of NSE’s new-generation renewable diesel demonstration plant at Stora Enso’s Varkaus Mill in Finland.

The plant is expected to start up in early 2009 and will be integrated into the energy infrastructure of the Stora Enso Varkaus Mill.

In addition, Foster Wheeler and the JV partners have also agreed in principle for further co-operation, aiming for delivery of a commercial-scale production plant to be located at one of Stora Enso’s mills. The contract includes an oxygen/steam gasifier and gas treatment equipment, although commercial terms were not disclosed.

‘This project is a major step forward in the development of technologies to reduce CO2 emissions,’ said Tomas Harju-Jeanty, president and chief executive officer of Foster Wheeler Energia Oy.