Foster Wheeler Ltd. announced today that its subsidiaries, Foster Wheeler Energy Limited and Foster Wheeler International Engineering & Consulting (Shanghai) Co. Ltd., have been chosen to provide feasibility studies for a CTL plant in China.

The contracts were awarded to the subsidiaries together with consortium partner, Wuhuan Engineering Company.

Sasol Synfuels International (Proprietary) Limited (Sasol) and Shenhua Ningxia Coal Industry Group Company Ltd. (Shenhua) awarded the contracts for the 80,000 barrels per day coal-to-liquids (CTL) plant in the Ningxia Hui Autonomous Region.

The region is known to be the coal-rich western part of the People’s Republic of China.

For its part, Foster Wheeler will develop the technical definition, engineering, procurement and construction strategy and cost estimate and will provide input to the project’s financial evaluation, to support project approval by the Chinese government.

The planned facility will convert coal into selected fuel products such as diesel, naphtha and liquefied petroleum gas by combining three principal processes: gasification of coal to synthesis gas, the conversion of synthesis gas into liquid fuels, and hydrocracking the converted products into valuable fuel products.

“Foster Wheeler is delighted to be selected by Sasol and Shenhua, together with our Chinese partner, to assist in the next stage of the development of this planned world-scale CTL plant in China, having been involved in the initial stage of the feasibility study three years ago,” explained Michael J Beaumont, Chairman and CEO of Foster Wheeler Energy Limited.

“We have established an excellent and long-standing working relationship with Sasol in the engineering and optimisation of Sasol’s gas-to-liquids and coal-to-liquids technologies.”