American Foster Wheeler announced today that its Milan-based subsidiary Foster Wheeler Italiana S.p.A. has been awarded an engineering, procurement and construction (EPC) contract for the addition of a second processing line at Lomellina Energia's existing waste-to-energy plant at Parona, Italy.

Foster Wheeler will undertake basic design, detailed engineering, materials supply, construction and erection works, commissioning and start-up on a lump-sum turnkey basis. The contract value exceeds US$130 million (110 million Euros), and will be included in Foster Wheeler's third-quarter 2005 bookings.

Gianfranco Brustia, director, Power Division, and vice president, Foster Wheeler Italiana S.p.A, said: \\$quot;This new investment will be primarily financed through a limited-recourse project financing by Lomellina Energia, with the balance of the investment being provided by the shareholders of Lomellina Energia.

\\$quot;Foster Wheeler also designed, built, started up and operates, with partners, the original plant, which has been in commercial operation since 1 October 2000. This was the first waste-to-energy project in Italy developed by a private company with project financing.\\$quot;

The existing plant, the first installation of its kind in Europe, is an integrated facility for recyclable materials recovery and refuse derived fuel (RDF) production, composting and electricity generation. It processes 200,000 tons per year of municipal solid waste (MSW), converting approximately 60 per cent of the MSW into RDF, which is then combusted, generating 15 MWe of electric power.

Foster Wheeler Italiana S.p.A. owns 39 per cent of Lomellina Energia S.r.l.

Commercial operation is scheduled for September 2007.