Foster Wheeler AG (NASDAQ:FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has entered into a Collaboration Agreement with ZeoGas LLC. In the first instance, Foster Wheeler will support ZeoGas’ final site selection and project planning towards the development of ZeoGas’ first fuels manufacturing plant, to be located on the US Gulf Coast.
The terms of the agreement were not disclosed, and the contract value for an initial release of work related to the development of a cost estimate and assistance in final site selection and due diligence will be included in the company’s third-quarter 2014 bookings. Further bookings will be made as work is released by ZeoGas.
ZeoGas’ “Syngas to ZeoGas TM” Process (STZ TM) converts a variety of feedstocks to synthesis gas and then to transportation fuels. ZeoGas previously announced that it has licensed from Air Liquide Global E&C Solutions, a subsidiary of Air Liquide Group, the world leader in gases, technologies and services for Industry and Health, (“Air Liquide”) its 5,000 metric ton per day MegaMethanol® production process technology for its first plant to convert clean natural gas feedstock to syngas and then to methanol. ZeoGas has also announced that it has licensed ExxonMobil Research and Engineering Company’s (EMRE) methanol to gasoline (MTG) technology to produce RON 92, zero-sulfur, low benzene gasoline.
“Our first plant is unique because it’s based exclusively on two proven, commercial-scale technologies and provides a significant volume of product derived from plentiful natural gas. Our partnership with Foster Wheeler completes the integrated approach ZeoGas has taken in developing our technology and engineering teams around global leaders that have deep experience with these proven technologies and in successfully delivering world-scale projects,” said Timothy D. Belton, Founder and CEO of ZeoGas. “Foster Wheeler is one of the largest and most reputable global engineering, procurement, and construction firms serving the petroleum and petrochemical industries. We expect this collaboration to be the foundation for building a portfolio of ZeoGas STZ TM plants in North America and elsewhere.”
“Foster Wheeler has a longstanding track record in the development and safe, successful delivery of technically complex, world-scale projects, and in-depth technical expertise in a wide range of innovative gas-to-products solutions. We have a talented team working on ZeoGas’ exciting planned investment and I believe we have already established the very close working partnership with ZeoGas that will enable us to add real value during the development of this ground-breaking project,” said Roberto Penno, Chief Executive Officer, Foster Wheeler Global Engineering and Construction Group.
Source: Foster Wheeler AG
Date: Sep 18, 2014