"Foster Wheeler (NASDAQ: FWLT) is a worldwide engineering, construction, and project management contractor with a reputation for delivering high quality, reliable facilities," says Jim Powell.

In his Global Changes & Opportunities Report, he suggests, "And while the company does business in 26 countries, its contracts in China alone could keep Foster Wheeler busy for several years." 

"Foster Wheeler operates in two segments. The Global Engineering and Construction Group designs and builds energy processing facilities worldwide.

"The company has a DOD contract to develop a gasification unit that will be used in 21 coal-fired electric plants. The systems being produced by Foster Wheeler emit no airborne pollutants and are cost-effective. I think the technology has enormous potential.

"So do the Chinese. As you may know, China produces almost all its electricity with coal, the only fossil fuel it has in abundance. Most Chinese coal-fired plants are major polluters and must be cleaned up. Foster Wheeler is the leading contender for the contracts.

"The company’s coal technology also produces flammable gasses that can be used in other types of power generating equipment including fuel cells and gas turbines.

"In addition, the gaseous coal is a good feedstock for various industrial chemicals. The char waste that is left over after the process is complete, can be burned in high-pressure steam turbine electric plants.

"Of course, other energy contractors also have coal gasification technology. The process dates to the 1930s. However, Foster Wheeler's synfuel process operates at much lower temperatures than competing methods. This reduces the need for expensive gas exchangers and cleanup systems.

"They are also easier to scale up or down for different sized plants. It’s not surprising that the Chinese decided the Foster Wheeler system is the best fit for them.

"Foster Wheeler’s second business is The Global Power Group that constructs electric plants throughout the world. China’s contracts alone could keep Foster Wheeler busy for several years.

"Foster Wheeler also excels in using waste energy from industrial operations to generate power, an area where it competes with Ormat Technologies. In addition, the company uses many kinds of industrial solids as fuel in power plants. 

"With today’s high energy costs, the company’s efficient 'green' processes are in great demand. Foster Wheeler has an excellent track record, but its stock is down sharply with oil prices. However, energy will surely recover and go on to new highs.

"As a result, the market for highly efficient, large-scale power generation should remain strong for at least another decade. Since Foster Wheeler is one of the few companies that is able to supply what the market needs, I think it has a bright future."