(EnergyAsia, January 10 2012, Tuesday) — Engineering giant Foster Wheeler AG said a subsidiary of its Global Power Group has been given a “limited notice” to proceed by GS Engineering and Construction to design a circulating fluidised-bed (CFB) steam generator for a project in South Korea’s Daeugu city.

The generator is due to start commercial operations by the end of 2014.

The Green Energy Centre Build, Transfer, Operate (BTO) project is owned and developed by the Daegu Metropolitan City.

Foster Wheeler, which did not disclose the terms of the agreement, said it hopes to finalise the contract and to receive full notice to proceed assuming all negotiations with the city are complete this quarter, at which time the full value of the contract would be booked.

Foster Wheeler said it will design one CFB steam generator to burn 380 tons/day of refuse derived fuel (RDF) while meeting applicable environmental regulatory requirements.

“South Korea has been an exceptional market for Foster Wheeler’s world class CFB steam generators,” said Gary Nedelka, CEO of Foster Wheeler Global Power Group.

“This project represents the opportunity for both electricity production as well as an alternative to landfilling and is another example of how the fuel flexibility of a CFB steam generator can provide environmentally friendly solutions for owners.

“Further, this award underscores the confidence of GS and Daegu Municipality in our ability to deliver a quality product for engineering such challenging fuel.”