Foster Wheeler pens Shanxi deal

Foster Wheeler Energy International Inc. has contracted to supply six 350 MW steam generators for an independent power project to be constructed in China`s Shanxi Province. It is billed as the largest single boiler contract ever awarded in China at (US)$350 million.

The contract was negotiated with Yangcheng International Power Generating Company Ltd. The steam generators will be installed at the Yangcheng No. 1 power plant to fire low-volatile anthracite coals from a nearby mine. This is thought to be the first major project to use China`s “coal-by-wire” concept for the development of the energy sector. Coal-by-wire is the name for a program in which PRC power plants are sited by coal mines rather than near the final consumers of the power. Power from Yangcheng No. 1 will be transmitted to users in Jiangsu Province.

The schedule calls for the first generator to enter commercial operation in late 1999, followed by the other five at five month intervals.