Foster Wheeler to Assist ZEO Gas' Fuel Plant Construction - Analyst Blog

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A subsidiary of Foster Wheeler 's ( FWLT ) Global Engineering & Construction Group (E&C) recently signed a collaborative agreement with ZeoGas LLC, for an undisclosed sum. Per the contract, Foster Wheeler is entailed to help ZeoGas with site selection and project planning for the installation of the latter's first fuel plant. Foster Wheeler will record the initial phase of the work under its third-quarter bookings while other bookings will be registered as and when work is released by ZeoGas. Shares of Foster Wheeler also responded well to the news and rallied 0.9% on Thursday.

To be based in the US Gulf Coast, ZeoGas' fuel manufacturing facility will be utilizing its proprietary Syngas to ZeoGas TM" Process (STZ TM) to convert a wide variety of feedstocks into gas and eventually produce transportation fuels. For the production of methanol and low benzene gasoline, ZeoGas has licensed technologies from Air Liquide Group and ExxonMobil, respectively.

Foster Wheeler's E&C group offers a wide range of project management and project control services for overseeing engineering, procurement and construction activities. These services include estimating costs, project planning and cost control. The provision of these services is an integral part of the planning, design and construction phases of projects that are executed directly for clients.

Thus, Air Liquide Group and ExxonMobil's technological expertise along with Foster Wheeler's management and set-up proficiency are expected to help ZeoGas produce significant volumes of clean fuel.

Separately, on Sep 17, Foster Wheeler announced the receipt of an engineering, procurement and construction management (EPC) services contract by E&C from Africa-based Sasol Petroleum ( SSL ) Temane Limitada. The contract requires Foster Wheeler to provide EPCm services for Sasol's electrical expansion and fuel gas superheater project at its Temane gas processing facility in Mozambique.

Foster Wheeler currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Willdan Group Inc. ( WLDN ) and VESC Corp. ( VSEC ) While Willdan Group sports a Zacks Rank #1 (Strong Buy), VESC carries a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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