One plant will generate 150 MW in Shannonbridge, Co. Offaly, and the other will be for 100 MW in Lanesboro, Co. Longford.
The ESB said they would provide enough power to supply 250,000 homes, and will employ 700 during construction and more than 80 permanently when they are operating.
However, the four existing peat-burning stations that are up to 50 years old will be closed and replaced by the new units.
Those power plants are at Shannonbridge, Lanesboro, Bellacorrick, Co. Mayo and Cahirciveen, Co. Kerry.
ESB’s chief executive, Padraig McManus, said the move was of the company’s continuing policy to maintain the strategic use of indigenous fuel as part of fuel diversity.
Foster Wheeler is a global company based in Hamilton, Bermuda, but with headquarters in Clinton, N.J.