Foster Wheeler announced today that its Global Power Group subsidiary has entered into a 20-year agreement with Essar Projects India Ltd. (EPIL), a subsidiary of Essar Group, to provide a technology license for utility-sized circulating fluidized-bed (CFB) steam generators to be sold in India.
"By providing Foster Wheeler with full access to the fast-growing power market in India, this agreement with Essar allows Foster Wheeler to further demonstrate our world-class utility CFB technology and increase our market penetration in this region of the world," said Gary Nedelka, CEO of Foster Wheeler Global Power Group.
"Essar Projects has entered into this licensing agreement with Foster Wheeler because they are the undisputed technology market leader in CFB combustion. EPIL believes that CFB technology is the future for the Indian market given the constrained fuel supply situation and the ever-increasing environmental concerns," remarked Alwyn Bowden, CEO of Essar Projects Ltd.
The terms of the agreement were not disclosed, and the contract value was included in second-quarter 2011 bookings. Future royalty payments will be recorded over the life of the agreement.