(Archived) Praxair and Foster Wheeler Form Alliance to Pursue Clean Coal Demonstration Projects

DANBURY, Conn., and HAMILTON, Bermuda, September 17, 2007 — Praxair, Inc. (NYSE: PX) and Foster Wheeler North America Corp., a US subsidiary of Foster Wheeler Ltd. (Nasdaq: FWLT) have signed a multi-year agreement that calls for the joint pursuit of certain demonstration projects that will incorporate clean coal technologies and integrated oxy-coal combustion systems into coal-fired electric generating plants to facilitate capture and sequestration of carbon dioxide (CO₂).

The combination of the two companies' technologies and systems expertise would enable a coal-fired generating plant to reduce carbon dioxide stack emissions by more than 90 percent as compared to a conventional coal-fired plant of similar size. Generating plants that burn opportunity fuels such as biomass and petroleum coke in combination with coal would also be able to effect similar reductions in CO₂ emissions. The two companies have agreed to share technical information to ensure successful integration of the combined systems.

Under the agreement, Foster Wheeler will develop and supply steam generators using oxy-coal combustion technology that can be installed in new or existing coal-fired power plants. Oxy-coal combustion creates a highly concentrated stream of CO₂ from a steam generator to facilitate carbon capture and sequestration. Foster Wheeler expects that its first applications of oxy-coal combustion technology would involve the company's circulating fluidized-bed (CFB) steam generators, which have already gained global market acceptance for their efficiency, fuel flexibility, and relatively low emissions. Foster Wheeler expects that oxy-coal combustion technology will be applicable to pulverized-coal (PC) steam generators as well.

Praxair has a long history of advancing oxygen-based combustion and gas-processing technologies that bring substantial productivity and environmental benefits to customers in many industries. For this project, Praxair will provide the upstream oxygen-supply facilities, applying its design, engineering and construction expertise in building large cryogenic air-separation plants that produce the large volumes of oxygen necessary for clean-coal projects. Praxair also will provide the downstream CO₂ capture and gas-processing technologies and equipment, based on its experience as one of the world's leading CO₂ suppliers. Praxair's control systems and integration capabilities also will be a key component of the project.

"We are pleased to be involved with Praxair in development of new technology to address CO₂ emissions from coal-fired power plants," said Gary Nedelka, president and chief executive officer of Foster Wheeler North America Corp. "We have already completed pilot and bench-scale testing of oxy-coal combustion in an R&D environment, and we look forward to accelerating this work under our agreement with Praxair. The application of oxy-coal combustion will allow us to advance both our CFB and PC technologies in the area of carbon capture."

"Working with Foster Wheeler will help accelerate the development of oxy-coal combustion technology in the power-generation field, enabling us to contribute an environmentally friendly way to tap vast coal resources to meet our energy needs," said Charles McConnell, Praxair's vice president, gasification and oxy-coal technology.

The companies expect that their first joint commercial effort will be the previously announced demonstration project being pursued by the Jamestown (New York) Board of Public Utilities. The Jamestown project would be the first of its kind in the United States and potentially an international model for future energy development.

Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the upstream oil and gas, LNG and gas-to-liquids, refining, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2006 sales of $8.3 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.

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