Foster Wheeler’s subsidiary, Global Engineering and Construction Group, has agreed contract terms for a feasibility study in South Africa.
Foster Wheeler AG’s engineering and construction division has received a contract from Sasol New Energy Holdings Limited to perform a feasibility study for a future gas-fired power generation plant. The facility is expected to use gas engines with an open cycle electrical output capacity of approximately 140MWe, while it will be located in Sasolburg, South Africa.
Umberto della Sala, CEO at Foster Wheeler AG, commented, “The award of this contract is not only significant in that it highlights Sasol’s continued confidence in our South African operation but, in extending our working relationship into power generation, also confirms our ability to provide comprehensive support to our clients in meeting their objectives in all aspects of their business.”
The overall contract terms remain undisclosed; however the value for the project will be incorporated into the company’s fourth quarter 2010 bookings. Foster Wheeler has committed to provide a feasibility study and capital cost estimate for the overall plant, the evaluation of gas engine suppliers and the recommendation of a preferred gas engine supplier.
Foster Wheeler anticipates that the study will be completed by December 2010. Similarly, Sasol has articulated high hopes for the research outcomes. Sasol expects that the project will raise its electricity self-sufficiency to 840MWe, or 60% of its overall power draw. The company also expects the project to align with more general objectives, such as Sasol’s plan to reduce its carbon dioxide emissions and bolster power self-sufficiency in the light of South Africa’s tightening electricity supply / demand balance.