issue 17 energy news – issue 17 3 dear reader, the world has faced serious blackouts in several...

Issue 17

Preventing blackouts, protecting assets

2 Energy News – Issue 17

Wärtsilä Energy News is published for businessfriends and employees of Wärtsilä.

Editorial Board: Stefan Gros, Jussi Heikkinen,Lars-Gustaf Martin, Maria Nystrand, Carl-GustavStorgård, Jukka YlänenEditor: Maria NystrandEnglish Editing: Andrew GardinerLayout: Bock’s Office

Please address correspondence to:Wärtsilä Finland Oy, Maria NystrandP.O.Box 244, 65101 Vaasa, Finlande-mail: [email protected]

ISSN 1456-3274

Information in this publication is subject to changewithout notice.Printed in October 2003.

All rights reserved.

www.wartsila.com

WÄRTSILÄ ® is a registered trademark.Copyright © 2003 Wärtsilä Corporation. In this issue

Wärtsilä peaking and reserve plantsin the free electricity markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

The night the lights went out.... . . . . . . . . . . . . . . . . . . . . . . . . . . 6

System stability – how distributed power can help . . . . . . . . . . . . 9

Pavana III, Honduras – reciprocating engines favouredfor 267 MW power plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Export credit agency financing of Wärtsilä power plants . . . . . . . 14

New Sri Lanka order for Wärtsilä . . . . . . . . . . . . . . . . . . . . . . . . 17

Estrella Del Norte power barge – 15 yearsof successful operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Wärtsilä Biopower steps into the global arena . . . . . . . . . . . . . . 20

Two power plant products for the western market . . . . . . . . . . . 22

Biopower for Finnforest’s sawmills. . . . . . . . . . . . . . . . . . . . . . . 23

Grainger Sawmills take BioPower CHP plant . . . . . . . . . . . . . . . 25

Wärtsilä seals deal with Russian sawmill . . . . . . . . . . . . . . . . . . 25

Turkey – an active energy market . . . . . . . . . . . . . . . . . . . . . . . 26

BTC pumping units – string test successfully completed . . . . . . 29

Yemen, a small but challenging power market . . . . . . . . . . . . . . 32

Appointments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Wärtsilä Corporation Worldwide . . . . . . . . . . . . . . . . . . . . . . . . 36

Energy News – Issue 17 3

Dear Reader,The world has faced serious blackouts inseveral countries on more than one continentthis year. As this situation is of current interestwe are happy to offer this issue of EnergyNews with its special focus on peaking plantsand spinning reserves, discussing both thetechnical and economic challenges typical forthese plants.

Electrical generation is a complex businessinvolving everything from international electricitytrading systems, to control and supervision ofthe transmission lines and grid systems, andending up with reliable control over individualpower plants.

The different types of power plants in thesystem have widely varying economic andtechnical requirements. From the systemoperators’ point of view, it is a must to haveplants that allow load variations within a fewseconds. If high efficiency can be maintained atvarious loads, so much the better.

Where the reserve power pool is concerned,the number one qualification is fast start,synchronization to the grid and easy loadincrease. We assert that we can supply ourcustomers with plants that meet all theserequirements.

This is partly a consequence of the loadapplication behaviour of reciprocating enginesin general but it is also the result of systematicdevelopment of engines and control systemsby Wärtsilä. Here the experience of black startunits for nuclear power plants with verydemanding start sequences, as well assynergies with our marine business and itssimilar requirement for fast-load applications,has contributed to our success. Many Wärtsiläplants can even meet the requirements of thespinning reserve without actually having theengines spinning at all.

Examples of other interesting topics you willfind in this issue are the growing biopowerbusiness, long-term experience of a plant withmore than 100,000 running hours, and anintroduction to the biggest Wärtsilä projectever: a 267 MW plant for Honduras.

I wish you interesting reading,

Stefan GrosVice PresidentDevelopment & TechnologyPower Plants

Yes, it could happen in any country thatdoes not have enough peaking andreserve power capacity available duringpeak hours. It is a question of capacityand speed. Do you have any reservecapacity left to cover the trips of yourlargest plants? How soon can yourpower plants come to the rescue whenthe power system is in trouble?

Criteria for reserve plantsIn deregulated electricity markets, eachstate’s or country’s power system ismanaged through an IndependentSystem Operator (ISO). These operateunder rules which are set out inoperating manuals covering the actionthat should be taken in the event ofnetwork and power system

disturbances. The criteria and terms ofthese rules differ considerably fromcountry to country.

When the largest unit in the powersystem trips, this typically causes what iscalled a ‘design basis disturbance’. Inthe USA, UK and Finland the largest unitis normally a nuclear plant. If a 1200 MWnuclear plant trips, the system shouldhave 1000 MW of Automatic GenerationControl (AGC) and instantaneous orspinning reserve power available in 5-30seconds to keep the frequency within a0.1 or 0.2 Hz deviation from the designvalue of 50 or 60 Hz.

After such a disturbance the AGCand instantaneous reserves will beoperating at full capacity, leaving noinstantaneous reserves available to

cover a possible second trip of anothercritical unit. Those reserves should bereturned to their initial position as soonas possible using Fast Reserve PowerPlants (FRP). The response timesrequired for the FRP plants to berunning at full power are 4–15 minutes.

After the fast reserve plants are inoperation, they should likewise bereturned to standby conditions to beavailable for a second design basis trip,typically the second largest nuclear unitin the system. To provide this capacity,second-level plants are required, calledReplacement Reserve Power Plants(RRP) in the USA or Slow Reserves inNordpool. The response times requiredfrom the RRP plants are typically 20–60minutes to achieve full power.


Decentralized power, distributed risk

Wärtsilä peaking and reserve plantsin the free electricity markets

Deregulation of the electricity markets has created considerable sensitivity tonetwork and power plant disturbances. We need only recall the recent blackoutsin the USA, Canada, Helsinki and London in August 2003, in Sweden andDenmark a few weeks later, and in the whole of Italy in mid-September. All serve

as a wake-up call to everybody in those countries and elsewhere. “This couldn’thappen to us” was and is the typical answer. But could it?

By Asko Vuorinen,General Manager of EnergyEngineering,Wärtsilä Corporation

AGC and instantaneousreserve power plantsAGC plants are plants operating in thenetwork and able to change their outputaccording to the frequency. Typicalcontinuous control covers ranges of± 0.1 or 0.2 Hz from the set point valueof 50 or 60 Hz. This is managed by thegovernor in your power plant’s gas ordiesel engine.

If the frequency drops more than 0.1or 0.2 Hz from the set point, theseinstantaneous reserves or ‘firstresponse plants’ will come into play. InNordpool 50% of the reserves shouldbe at full power in 5 seconds, in the UK10 seconds (Figure 1). The remainingreserves, the ‘second response plants’,should be in operation in 30 seconds inboth systems.

This requirement can be coveredusing a diesel or gas engine, which innormal conditions is operating at 30%power. The first response to 65% canbe achieved in 5 seconds and thesecond response to 100% in 30seconds from the disturbance. Hencethe load change capability of Wärtsiläengines is typically 70% in 30 seconds.The WÄRTSILÄ® 46 engine with anoutput of 17 MW thus has a controlpower range of 12 MW.

This can be compared with a typicalsteam or gas turbine, which can onlyincrease output in 10% incrementsowing to the high temperatures andturbine speeds at which they run. Thismeans you would need a 120 MWsteam or gas turbine power plant to getthe equivalent control power capability.Steam or gas turbines also havemassive steel casings, which limit theircontrol power range.

Fast reserve power plantsFast reserves are needed to restoreAGC and instantaneous reserves totheir normal values within the timerequired by the ISO. In a typical case inthe USA or Canada this is 10 minutes.The National Grid in the UK requires4-minute and Nordpool 15-minutestart-up times to full power.

To get full power in four minutes isthe normal requirement for dieselengines, which in marine applicationstypically have even faster responsetimes. Thus Wärtsilä diesel engines canbe synchronized in 30 seconds from hotstandby conditions and reach full powerin three minutes. The gas engines canstart up in seven minutes. You caneasily notice the fast start-up time of theinternal combustion engine when youstart your car.

Gas turbines need more time forsynchronization. They have large inertiaand very high speeds. The typicalsynchronization time for industrial gasturbines is 15 minutes, so in thisinstance they cannot be of any help.Only the smallest aero-derivative gasturbines can have equivalent responsetimes of less than 10 minutes. Themajor challenge for the aero engines,however, is the very high firingtemperature (1500°C) in the first bladesand casings.

Replacement reservepower plantsReplacement reserve power plants areneeded to restore the fast reserveplants to their standby condition to beready for the second largest designbasis trip in the ISO system. Theresponse time required from these RRP

plants is 20–60 minutes but in this casethey may have to run for longer periodsor as peaking units, in which case fuelcosts might be a major problem.

The response time is not a problemfor typical diesel, gas or dual-fuelengines, as already shown. Nor are thefuel costs; the high efficiency of theWärtsilä 46/50DF dual-fuel engines(44-45%) and the Wärtsilä 32/34SG gasengines (42-44%) ensures that fuelcosts using these diesel, gas ordual-fuel engines are low.

Fuel costs can also be reduced byfuel switching, another feature of theseengines. Wärtsilä 46 and 32 enginescan be switched to run on heavy fuel oil,and Wärtsilä 50DF and 32DF enginescan be switched to use natural gas, orswitched from gas to oil, online whilethe engine is running at 80% power.

Peaking power plantsPeaking power plants are needed tocover the peak load in the system. InCalifornia, the peak load in the summerof 2001 was caused by the very warmweather. In Finland in the winter of2002/2003 the peak load was causedby the very cold weather.

In the hot summer of 2001 the ISOdiscovered that the system had areserve capacity of only 2%, which wasmuch less than the 17% required fornormal operation. As a result theCalifornian ISO initiated ‘rollingblackouts’. One part of the network witha load of about 200 MW was taken offline for an hour sequentially – city by cityand factory by factory – to reduceelectricity consumption.

The Californian utilities andauthorities learned their lesson andbegan ordering peaking and reservepower plants. They now require that fullpower should be achieved within 10minutes. Wärtsilä has built severalplants there as well. The Plains End111 MW peaking power plant inColorado is the largest gas-firedWärtsilä gas engine power plant in theworld.

Today the Californian power systemhas a reserve capacity of about 10%.This is more than the Finnish system,which has a reserve of only 8%. Onecan forecast that possible blackoutscould occur in Finland during very coldwinter days, if the temperature dropsbelow 27 degrees Celsius and one ortwo nuclear plants trip at the same time.A blackout in very cold conditions is anightmare which the authorities woulddo well to think about before ithappens.


0

500

1000

1500

0 10 s 30 s 1 min 2 min 4 min 10 min 20 min 60 min

Out

put(

MW

)

First responseSecond responseFast reservesStanding reserves

Fig. 1 Response times after 1200 MW unit trip in UK.

Peaking plants can be usedeconomically when the electricity spotprices are higher than 50 €/MWh in thepower exchange markets. In the pastyear the power prices in Nordpool weremore than 50 euros for 1500 hours andmore than 100 euros for 200 hours.Thus a diesel power plant running onlight fuel oil and having variableoperating costs of 50 €/MWh canoperate for 1500 hours annually andmake an operating profit. The price hasnot been high enough to speed upinvestments.

Peaking power plants can alsooperate in the balancing power plantmarkets. These are the marketsarranged by the ISO and operate on a 4to 15 minute timeframe. Each utilityshould balance its electricity sales andproduction at 30 to 60 minute intervals.If the utilities have less capacity thanthey require, they can buy the rest fromthe balancing markets. There the pricesare typically 10-20% higher than thespot prices. So if your peaking plant isfast enough, you can earn extrarevenue by selling the output to thisfaster and better priced market.

How to prevent blackoutsThe new electricity trading system haschanged the rules in the powerbusiness completely. There is nobodyto guarantee that there is enough powerin the system any more. So if theregulations are not in order, the

capacity will probably remain insufficientand blackouts will arise. Countries mustbe prepared for blackouts and try toeliminate them before they occur.

Elimination calls for properregulations, which should placecapacity obligations on utilities andtraders. Somebody should take theresponsibility for maintaining thenecessary reserve capacity. Perhapsthose building the two largest plants inthe system should build an equivalentamount of reserve capacity. It is quitelikely that one day both of the largestunits will be out of operationsimultaneously, and when nobodyexpects it.

You can prepare for the future bybuilding plants that meet even thehighest standards, which in my viewexist in the UK. It didn’t make the news,for example, when the two SizewellB-1200 MW units tripped and thesystem survived in May 2002. Thefrequency dipped below 49.5 Hz onlyfor a very short period.

In any case you should protect yourvital infrastructure (hospitals, airportsand large power plants) from blackoutsby having diesel engines on standby. Ifyour power system needs 15% reservepower, the best idea is to build them ina dispersed way, in places near the mostimportant sites. Such decentralizeddiesel power plants can also be used asa backup to safeguard the whole powersystem from blackout. �


Basic data on Wärtsilä fast reserve power plantsWärtsilä 46 Wärtsilä 50 DF

Fuel LFO and HFO Natural gas and LFOElectrical efficiency 44% 45%Typical output 51 MW 48 MW

Time to synchronization 30 seconds 30 seconds using LFO60 seconds with gas

Time to reach full power 3 minutes 3 minutes with LFO7 minutes with gas

Delivery time from contract signing 8-12 months 8-12 months

Plains End, USA, a 111 MW peaking power plant.


By Kelly Speakes, Marketing DirectorWärtsilä North America, Inc.

The

...in New York and in New Jersey. And inConnecticut, Ohio, Pennsylvania,Michigan. And Toronto and Ottawa inCanada.

Over 50 million people in North America wereaffected by a blackout on 14 August 2003.Although the exact cause is not yet determined,there is at least a sketch of what happened.

The massive outage in North America, andspecifically in the United States, is indicative oftwo problems: power infrastructure failuresduring a period of uncertainty in the future of thenation’s grid system, and the stalled status ofthe deregulation process. The public debateabout upgrades of the transmission system hasmerit, but also gives rise to the emerging role ofdispersed generation in the energy portfolio ofthe region.

14 August 2003As far as can be traced, the original trip occurredin Ohio. Unit No. 5 at the Eastlake power plant inEastlake, Ohio, incurred a major failure at 2o’clock that afternoon. The plant, generating1262 MW at full capacity, is owned and


night the lights went out...

operated by FirstEnergy. Five coal-firedunits produce energy for the Midwestregion of the US, which is transmitted as farnortheast as the state of Vermont.

It only took 11 minutes for the rippleeffect to reach residents in New York City,rendering the entire city, including the NewYork Stock Exchange, powerless.

When the failure was first detected in thetransmission system, it is thought (exacttiming is as yet unpublished) that it took onehour for the plant itself to be taken offline,and isolated from the transmission gridwhich feeds into the Midwest, Canadian andNortheast markets. The extremely shortperiod it took for this failure to overload andtrip connected plants along the line wascrippling: 80% of New York State wasaffected, 1 million homes in New Jerseywere without power and 2 million customersin Michigan went black. Moreover, 10 millionCanadians, in Ottawa and Toronto, whoreceive their power through the connectedtransmission grid to the USA, lost theirenergy supply. Vermont, also connected tothe transmission line from New York, was

able to disconnect their system in time,avoiding a major outage1.

Safety measures reportedly workedproperly. Due to the overload and resultantsurge in demand, seven nuclear plants inNew York and New Jersey shut downautomatically. Two nuclear plants in theMidwest did the same. In total,approximately 100 power plants and 22nuclear plants were shut down.2

And to the credit of those involved, thefault was identified and restored quickly –relative to the time that it takes for acentralized utility power plant to restart. Ittook 3 days to restore power to 80% of theaffected areas.

Pass it onThe single most important cause cited forthe outage is an antiquated transmissionsystem. And this antiquation andover-capacity of the system, claim expertsin the electricity market, is not isolated tothat specific path alone.

There has not been a major structuralupgrade of the nation’s transmission

system in recent history. Commenting onthe outage, Spencer Abraham, Governor ofNew Mexico and former Secretary ofEnergy under the Clinton Administration,said: “We are a major superpower with athird-world electrical grid. Our grid isantiquated. It needs seriousmodernization.”

There have been identifiable ‘bottlenecks’in energy transmission – pockets of demandthat are larger than the capacity of the linesto carry it to the end user – especially sincethe booming economic growth in the late1990s and resultant increase in demand.The lagging economy of the US over thepast 24 months has alleviated the threat ofpotential outages, but the much neededcurrent economic recovery will increasedemand, particularly at the points of thesebottlenecks – which also happen to be themajor economic and population centers. Amoderate economic growth of 3.5% peryear over the next several years is expectedto result in an electricity demand increase of9 GW in 2003, and additional 7 GW in2004.3



Undoubtedly, the US transmissionsystem needs a major upgrade, and itmust be co-ordinated effectively to avoidfuture major outages of this kind.

1000 points of lightOf all the photographs circulated in themainstream media, there were manydramatic portrayals of cities at night,especially of New York City. The Americanpeople seemed fascinated by the city’stwo days of eerie quiet due to theblackout. But of those aerial views, it wasvery interesting to see that certain pointsof light did exist. Where was the powercoming from which lit the areas within therange of the largest ever power outage inNorth America?

A closer look shows that there arespecific communities and institutionswhich remained lit at night while thecentralized power plants were stillunavailable.

Cogeneration facilities, employingisolated distributed generation capacity,were able to keep their industries,hospitals, and facilities running. Localmunicipalities with their own capacity togenerate power were able to disconnectfrom the major transmission lines, andprovide reliable power to their ownconstituents, transmitting energy to theirresidential and commercial customerswithout failure along the distribution linesat a lower voltage.

Dispersed generationThis generation along the distribution lines,adapted and installed at a growingnumber of municipalities in the United

States, demonstrates the emerging modelof dispersed generation.

Dispersed generation is defined as adecentralized power plant, feeding into thedistribution level power grid and typicallysized between 10 and 150 MW. It hasbeen effectively implemented in a growingnumber of local municipalities, and byindependent power producers (IPPs)under multi-year power purchaseagreements to support the transmissiongrid where constraints are increasingprices and decreasing reliability of thedelivery of power.

Dispersed generation offers severalbenefits:� Increased reliability andcontribution to system stabilityDispersed generation plants are designedto operate when the price of power ishigh, but more importantly, to operatewhen the reliability of the system isdisturbed. By disconnecting large loadcenters, supported by dispersedgeneration from the centralized grid, thesystem may be saved from a total failure.� Minutes to dispatchAs opposed to centralized power plants,dispersed generation plants are flexiblydispatched in incremental blocks of poweras needed. In the case of a dispersedgeneration plant powered by reciprocatingengines, a major outage such as the oneexperienced in August might have beensupplemented regionally, bringing powerback online within 10 minutes.� Closer to the loadIn areas of transmission bottlenecks, theseplants may be dispatched along thedistribution level, and support the grid

while the major central utility plants arebrought back online.� Affordable, efficient powerIntermediate peaking periods, for exampleduring months of extreme weather suchas summer or winter, typically trigger ahigher price of electricity from centralizedutility plants than in the off-peak periods.Technological and economic advances inthe last decade of reciprocating plantsenable the operator to effectively cap theprice of power by dispatching andself-generating electricity at a predictable,reliable variable cost. In the case ofmunicipalities, the added flexibility ofgeneration capacity serves as anadditional negotiating tool in its contractfor power with the central utility.

ConclusionThe North American power outage of2003 has sparked a public debate aboutthe quality of the centralized power systemas a whole, and its ability to transmitpower to the load where and whenneeded. While such an infrastructureupgrade is unquestionably required, thisupgrade will take reportedly 100 billionUSD and at least 5-10 years4. In themeantime, a diverse portfolio includingdispersed and distributed generation willserve to supplement and increase thereliability of the overall system. �

1 Source: New York Times online, 15 August 2003.

2 Source: Electric Light and Power, September 2003.

3 Source: Energy Information Administration,eia.doe.gov

4 Source: Electric Light and Power, September 2003.

But not quite everyone: ChunghwaPicture Tubes Ltd. (CPT) had a CRT(Cathode Ray Tube) factory with apower supply secured by four Wärtsilä18V32LN engines providing about 25MWe for their own consumption. Theplant was in operation during theearthquake and decoupledautomatically from the public utility asthe power grid collapsed.

The plant continued to provide powerfor the factory in island mode for the next21 days as the Taiwan Power Companyrecovered from the effects of theearthquake. During this time, the powerplant secured the deliveries of the secondlargest CRT manufacturer in the world.

Today, four years later, CPT runs a75 MWe power plant, comprising 12Wärtsilä 18V32LN engines, to ensurecontinued power for the company’sproduction line. A secure power supplyhas considerable economic implicationsfor CPT, which holds 23% of the globalmarket for CRTs, 7% of the globalmarket for TFT (Thin Film Transistor)displays and is the first maker of PDPs(Plasma Display Panels) in Taiwan.

The CPT example shows howdistributed power generation can beused to guarantee the power supply ofa large consumer. The benefits ofdistributed power generation to the gridowner and operator are less evident,however. To understand the impact onthe whole system, we need tounderstand how power systems work

and what are the important factors thatcontribute to system stability.

System stability basics andpower system designWith electricity available round the clockevery day, we can easily take it forgranted. However, we should alwaysremember that the power generation,transmission and distribution systemsare the largest dynamic man-madesystems in the world, and as suchpresent an enormous technologicalchallenge.

A dynamic system means that itmust be controlled at all times tomaintain stability. The two factors thatneed to be in balance in a powersystem are the active power P [kW]and the reactive power Q [kvar].Failure to keep either of these variablesin balance will result in a failure, whichmay vary from a minor local disturbanceto a total system blackout.

Active powerActive power influences the frequencyof the system. Hence if there is animbalance between the generation andconsumption of active power, thefrequency will change. Since the powergeneration system cannot instantlyrespond to variations in consumption, itmust contain inertia which can store theenergy to compensate for the time lagin generation response. Inertia storesenergy in rotary motion and it can both

receive and dispatch active power,depending on whether the frequency isincreasing or decreasing.

Reactive powerReactive power influences the voltageof the system. Therefore if there is animbalance between the generation andconsumption of reactive power, thevoltage will change. However, there isno equivalent of inertia for the reactivepower to stabilize the system; thevoltage and the reactive power balanceare partly self-regulating since thereactive power consumption will changewith the voltage and hence allow abuffer for the reactive power control.

DifferencesDespite the similarity, there is not muchanalogy between active and reactivepower control. Active power can begenerated centrally and transmittedover long distances with transmissionlines because the resistance in thetransmission system is small. As a resultthe interconnection between generatingunits is strong, and we can consider theactive power or frequency as a globalparameter.

Reactive power and voltage,however, are largely local parametersbecause the reactive power respondsto transmission system reactance,which is much higher than resistance.As a result, reactive power can only betransmitted over limited distances, the


Technology in focus

System stability – how distributedpower can help By Vesa Riihimäki, General Manager, Electrical & Automations Systems, D&T

Wärtsilä Finland Oy, Power Plants

At 01.47 hours on 21 September 1999Taiwan was hit by an earthquakemeasuring 7.3 on the Richter scale.Among other things, the earthquakewiped out the nation’s powergeneration and transmission system,leaving almost everyone withoutelectricity.

Control room at the CPT power plant.

length of which depends on the systemvoltage level, and it must typically begenerated close to the consumption.

The voltage interconnection betweengenerating units over a long distance isweak and at medium and low voltagelevels, for instance, it is easy to control thevoltage level locally, even by several percent, simply by increasing or decreasingreactive power generation in that location.

Load angleWe noted above that theinterconnection between generatingunits for active power generation isstrong. This is only true, however, ifthere is sufficiently high voltage in allparts of the system to keep the entiresystem synchronized. The systemremains synchronized if the load anglestability is maintained. The load angle �

is the angle between the voltage vectorsat two points in the power transmissionsystem. When system loading variesbetween the two points, the load anglewill also change.

The concept of load angle is alsovalid for synchronous machines,although it is then often referred to asthe ‘rotor angle’ to make a distinctionbetween generation and transmissionsystem load angles. Both active powerand voltage control affect the load angleand the system stability is manifested inthe load angle stability.

In order to understand therelationship between active power andvoltage, let us analyze a simple radialnetwork consisting of a generator, a lineand a motor as shown in Fig. 1.

When we take the generator voltageEG, generator reactance XG, linereactance XL, motor reactance XM, andmotor voltage EM into account, we canestablish the system model which isshown in Fig. 2.

In this system the relationshipbetween power and voltage can be

presented by Equation 1:

PE E

X X XG M

G L M

��

sin �

As we can see from this equation thesystem has a maximum powertransmission limit P, which depends onthe voltage at both ends, and the totalreactance in between. The maximumpower is transmitted at a 90-degreeload angle.

From Fig. 3 we see that therelationship between active powertransmission and load angle isnon-linear, and that the incrementalincrease in load angle at close to 90degrees produces a much lower powerincrement than at a low load angle. Thisclearly shows that it is more difficult tomaintain stability at high load than atlow load.

The significance of voltage stabilitycan also be demonstrated withEquation 1. If the voltage collapses ateither end of the system, the maximumpower transmission level will collapse aswell, resulting in a fast increase in theload angle.

Small changes in voltage can beillustrated by the vector presentation inFig. 4. The system is operated atconstant load but at two different motorvoltage EM1 and EM2. The difference involtage is compensated for by theincrease in load angle. The load anglemovement can be perhaps bestdescribed as ‘elastic’ and the elasticitycan be observed in the variations ofload angle in different parts of thesystem as shown in Fig. 4 for thegenerator, the line and the motor loadangles.

The dynamic stability of the powersystem is to a very large extentassociated with the stability of activepower control, which is the reason whythe main focus is placed on managingthe active power generation and

reserves. It has been easy to centralizethe active power generation and, sincemore inertia brings more stability, itmakes sense to build one large systeminstead of many small ones.

There is only one downside tocentralization: the voltage control is notoptimized. This is not a problem as longas the transmission system loading issmall and the load angles remain low.However, with the increasing need forpower, the transmission lines arebecoming heavily loaded, which in turnmakes the system voltage critical for theoverall stability.

Benefits of distributed powergenerationWhat can distributed power generationprovide for the consumer and for thepower system operator in terms ofpower supply stability?

Secure power supplyAs the Chunghwa Picture Tubeexample shows, distributed powergeneration is an ideal way for largeconsumers to secure their powersupply. The applications can beanything from a factory to localpopulation centres, airports andhospitals. Secure power supply systemsare typically running at all times andproviding power to the local consumers.The benefits for the consumers areclear – no power cut even if the gridfails.

Secure power installations have atie-in point with the utility, which is theprimary decoupling point in case of agrid failure. The system is operated inimport/export control at the tie-in point,keeping the power flow at apredetermined level. Typically, thesystem operates at a small importpower, which means that decoupling atthe tie-in point does not have muchimpact on either side.


Technology in focus

Fig. 2 Radial power system model.

G M

Fig. 1 Radial power system with agenerator (G), line and load (M).

From the power system operator’spoint of view, secure power supplysystems provide the following benefits:� The system load angles are reduced

because the power is generatedlocally. In case of heavily loadedsystems with high load angles, theload reduction brings clearadvantages to the system stability.

� The voltage control locally improvesthe voltage stability and reduces therisk of voltage collapse. As statedearlier, voltage stability is one of thecritical factors underlying stability inmany power systems today.

� In the event of a system-wide failure,the secure power installationsdecouple and typically reduce thesystem loading (a small import levelis decoupled). The reduction insystem loading typically helps to gainstability because the load angles arereduced.

Since distributed power plants arenormally small in comparison to thebaseload power stations in the system,the effects are small in scale as well.However, as the number of securepower supply installations increases,

substantial benefits will materialize evenin large power systems.

Secure power supply applicationsrequire good controllability of thegenerating set; operation must becontinued without disruption undertransient conditions. Reciprocatingengines are well suited for secure powerapplications because the power outputand frequency control is fast andrepeatable, and the prime movers havegood load response characteristics.

Peak shavingAnother typical application of distributedpower generation is peak shaving.These plants are operated when thesystem hits peak demand or duringemergency situations. Peak shavingplants can be combined with theprinciples of secure power supply toenable higher reliability for consumersduring high demand.

Distributed peak shaving powergeneration has the following twoimpacts on the power system:� Peak shaving plants are operated

during high demand, which is themost critical time for the power

system stability. The distributedplants will reduce the load angle andtherefore improve the systemstability.

� The voltage control locally improvesthe voltage stability and reduces therisk of voltage collapse. It is againworth mentioning that the voltagesupport takes place at the right time,i.e. during high system loading.

Peak shaving plants need to be startedand stopped frequently. Therefore theprime mover should have fast startingcharacteristics. Reciprocating enginesare well suited for peak shavingapplications due to their shortpreparation time for start-up. Forexample, if the engines are in hotstandby mode, it is possible to startimmediately if power is neededsuddenly. Medium-speed generatingsets have a relatively low inertiaconstant, which enables fastacceleration to nominal speed andsmooth synchronization to the grid –another point of value when the systemquickly requires a peak or emergencypower supply.

ConclusionIt is evident that the use of distributedpower generation can contribute tosystem stability as well as provide amore secure power supply to theconsumers. When these benefits arecombined with reduced transmissionand distribution losses, and thepossibility for high-efficiency CombinedHeat and Power (CHP) applications, thetechnical and economic benefits ofdistributed power generation areconvincing.

There is only one more thing to do:secure your power supply. The supplyof the needed power plants is alreadysecured by Wärtsilä. �


0

0.2

0.4

0.6

0.8

1

1.2

0Load angle [deg]

P[ p

.u.]

45 90 135 150

Fig. 3 Power versus load angle Fig. 4 Vector representation of power transmission

The 267.4 MW Pavana III power plantwill be powered by a total of sixteenWärtsilä 18V46 engines operating onheavy fuel oil. The scope of Wärtsilä’scontract covers power plantengineering, procurement, supply,construction and start-up.

Lufussa awarded the engineering,procurement and construction contractto Wärtsilä in August 2003. The plantwill enter commercial operation in twophases: the first phase in 12 months willprovide 133.7 MW while the secondphase, three months later, will bring theplant to its full capacity of 267.4 MW.

Countdown to 210 MW contractThe Pavana III project originated in 2001when the Honduran national utilityEmpresa Nacional de Energía Eléctrica(ENEE) announced an internationaltender to purchase 210 MW for 12years. This was in response toHonduras’s fast increasing energydemand and the need to replace

inefficient and unreliable generatingfacilities, which sometimes causeblackouts and brownouts. The tenderconcluded in July 2002 with sixinternational bidders submittingproposals.

In November 2002, ENEE awardedthe 210 MW power purchaseagreement (PPA) contract to Lufussa,the company offering the lowest sellingprice, and included in the contract a120 km transmission line andsubstation for ENEE. Lufussa proposedWärtsilä’s state-of-the-art technology toENEE for its demonstrated economic,reliable, and environmentally friendlyoperation on low-cost heavy fuel oil.

In December 2002, Lufussa andENEE signed the 210 MW PPA and itwas shortly after ratified into law by theHonduran Congress.

On 27 August 2003, Lufussa signedthe project loan agreement with theCentral American Bank of EconomicIntegration (CABEI) and a group of

regional Central American banks. PabloSchneider, President of CABEI, statedthat “the project is a global investmentof 180 million US dollars, 87 million ofwhich will be provided by CABEI andthe remainder financed by regionalbanks.”

Additionally, Wärtsilä arranged arecord 87 million US$ political riskcoverage from the Finnish Export CreditAgency, Finnvera. This funding wasarranged through Nordea Bank Finlandplc (see pages 14-17).

Power for the capital“We are greatly honoured to have beenselected by ENEE for this project andassume the responsibility necessary tocomplete it,” stated Mr Schucry Kafie,President of Lufussa.

“We believe in the future of Hondurasand will continue to invest both timeand resources in projects like this.Honduras is the biggest winner in thisproject because by buying these 210


What’s new

Pavana III, Honduras

Reciprocating engines favouredfor 267 MW power plant By Roberto Lira

Business Development ManagerWärtsilä North America, Inc.

Wärtsilä isconstructing a267 MW baseloaddiesel engine

power plant in Pavana,Honduras, Central Americafor Luz y Fuerza de SanLorenzo S.A. (Lufussa).The largest power plantever built by Wärtsilä, itwill add 30% to theinstalled electricitycapacity of Honduras. It isalso a case ofreciprocating enginetechnology being chosenin preference to combinedcycle combustion turbines.

megawatts, at Lufussa’s prices,Honduras will save over 42 million USdollars annually compared to currentenergy prices. Our project also includesconnection to the grid of the newtransmission lines and substationsvalued at over 25 million dollars, free ofpayment by ENEE,” he added.

“We are very glad to have chosenWärtsilä again as our technical partner,”Mr Kafie continued. “In this tender, wefaced a new competitor offeringcombined cycle turbines burning naturalgas. We also faced traditionalcompetition from other bidders offeringreciprocating engine technology.Working closely with Wärtsilä we wonthe tender.”

The plant layout will accommodatethe engines in two separate engine hallsjoined together by the control room.This design, selected for safety reasons,also allows the operator to have visualcontact with all engines. Furthermore,the plant will be equipped with

Wärtsilä’s state-of-the-art control andmonitoring systems allowing easy andsafe operation from the comfort of thecontrol room.

The plant will comply with the latestWorld Bank environmental guidelinesand has already received the necessaryenvironmental permit from theHonduras government.

The Lufussa project also includes anew substation named ‘Aguas Caliente’on the site along with a new 120 km,230 kV transmission line, additionalstorage tanks at its fuel depot located inPuerto El Henecan, and a 13 km fuelpipeline from the fuel depot to the plant.The transmission line will deliver thepower generated by the plant to theAmarateca substation, which is locatedon the perimeter of the Hondurancapital Tegucigalpa, where the power isurgently needed.

Technology of choiceLufussa is a Honduran ownedIndependent Power Producer (IPP)which also owns and operates an 80MW baseload plant with Wärtsilä enginetechnology, a 40 MW peaking plant withgas turbine technology, and a fuelimport terminal. All these facilities arelocated in the south-western region ofthe country.

Honduras currently has an installedpower capacity of about 840 MW, ofwhich 404 MW is supplied by thermalplants and 436 MW by hydroelectricinstallations. Once the Pavana III powerplant is in operation, Wärtsilä-poweredplants will account for 41% of the totalinstalled capacity in Honduras and aneven higher percentage of generatedenergy.

Green field projects totallingapproximately 2300 MW have beeninstalled in Central America since 1990,mostly by IPPs. Almost 1500 MW (64%)of these are powered by reciprocatingengines burning low-cost heavy fuel oil.Reciprocating engines continue to be thetechnology of choice because of theirhigh efficiency, economical costs, andconstruction cycles of 12 months of less.

In the same period, Wärtsilä hasinstalled 1300 MW of power capacity inCentral America, representing an 84%share of the reciprocating enginemarket. In total, Wärtsilä has almost4000 MW of reference power plants inLatin America and the Caribbean.

Bright future for HondurasPavana III is a perfect example of localindustrial and financial groups filling theinvestment gap in new-generationpower and transmission systems for thebenefit of their own countries andregion. This is particularly true sinceinternational investors have becomescarce ever since the Enron collapseand its domino affect that shocked theIPP Industry.

On 14 August 2003, the north-eastof the USA and south-east Canadasuffered a massive electrical blackoutwhich affected 50 million people. Theregion came to a complete halt and thepopulation was greatly distressedduring the following few days while thepower was gradually brought back tothe region. The failure is apparentlyrooted in lack of investment in thetransmission system; since deregulationthere has been no incentive for theAmerican utilities to invest intransmission.

Given the California crisis broughtabout by deregulation of the electricitysector, Honduras has resistedinternational pressure to deregulateENEE, although all other countries inCentral America had alreadyderegulated most or the entire electricalsector prior to the California crisis.Instead, Honduras has wisely chosen towait and learn from the deregulationchoices, right or wrong, made by otherinternational markets.

For now, thanks to the Lufussa andWärtsilä teams, Honduras will enjoy thebenefits of reliable, economical, andclean electrical power. Honduras willhave a brighter future – in more waysthan one. �


Pavana III, 267 MW,Wärtsilä’s largest powerplant to date.

Honduras

Pavana III

For many, the past decade orso in the power industry hasbeen one incredible party –the early 1990s saw the

huge influx of power investorsinto Asia, IPPs emerged as aphenomena in Latin America,qualifying facilities were beingdeveloped in abundance in theUSA and elsewhere. If you were‘hip’ in the energy business, youwere developing merchantpower plants with a palatialtrading floor.

Then the inevitable occurred – the partyended, followed by ‘el grandehangover’. The Asian crisis struck,economies in Latin America

experienced economic meltdown,‘Enronitis’ hit the US market and USplayers, September 11 rocked thewhole world, oil and gas prices surged,merchant plants collapsed, and theuncertainty of war and terrorism have allhad a slowdown effect on the globaleconomies.

Trends in power financingThese phenomena have also affectedthe ability to finance new power plants.Many banks have experienced troubleassets, and few have found themselvesin the asset management business.Generally, though, banks areincreasingly reluctant to lend to powerprojects that do not have long-termpower purchase agreements (PPAs),

are not equitably structured, or haveuncovered political risks in emergingcountries.

At the same time, large developers,mostly the US energy companies, havesuffered strong setbacks in theiraggressive international strategies. Theircredit ratings are low and, as sponsorsof power projects, their involvementdoes not provide much comfort tofinanciers.

What will it take for banks to financepower projects in emerging markets?

With the involvement of Export CreditAgencies (ECA) to cover political andcommercial risk, banks are quite keento finance power projects in emergingmarkets. The ECA involvement not onlyplaces the bank in a better negotiating


Drivers and trends

Manaus, Brazil, a 158 MW baseload power plant.

Export credit agency financing ofWärtsilä power plants By Nomi Ahmad, Vice President, Finance

Wärtsilä Development & Financial Services, Inc.

position in the event of a crisis (the ParisClub) but also encourages both foreigncorporations and sovereigns to behavemore responsibly and honour theirrepayment obligations.

‘Umbrella’ protection from B-Loansthrough multilaterals such as the IFC,IDB and EBRD offer another avenue forbanks to gain comfort in financingpower projects in emerging markets.B-Loans have been successfully utilizedin Pakistan, Indonesia, Honduras,Jamaica and Russia and stronglyreduce political, regulatory and currencytransferability risks.

Lastly financiers get some level ofcomfort from co-financing with otherdevelopment banks such as DEG,FMO, FinnFund, NIB or OPIC, coupled

with a vendor stake in the project, eitheras a shareholder or as an operator.

Anatomy of an ECA financingECAs are established by bothgovernments and the private sector forthe promotion of exports. For example,in the case of Finland where most ofWärtsilä’s manufacturing base islocated, Finnvera plc (www.finnvera.fi) isthe Finnish ECA and it supportsWärtsilä’s sales by financing powerequipment in countries where localfinancing markets are not adequatelydeveloped.

EU rules require that all EuropeanECAs operate under the OECDConsensus Guidelines. These havebeen established to provide an even

competitive environment for exporterswith regard to financing assistance fromtheir respective governments. Wärtsiläalso has manufacturing/assemblyfacilities in Italy and Spain and hencehas relationships with SACE andCESCE.

ECAs provide comprehensiveguarantees to a funding bank for up to85% of the EPC Contract amount. TheECA guarantee will typically provide thefunding bank with 90% political risk and85% commercial risk coverage. SomeECAs might even consider a 100%comprehensive cover on a case bycase basis. The bank assumes theresidual risk, i.e. 10% political risk and15% commercial risk. The funding bankenters into a loan agreement and


Wärtsilä

FinnveraBank

Customer

Funding

LoanAgreement

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AAA Guarantee for85% of EPC Value

Disbursements

Fig. 1 Typical Finnvera financingstructure.

Road to Financial Close

PreliminaryProject Analysis

Structure Transactionto be Bankable

IndicativeOffer

FinnveraApplication

FIDEApplication

Analysis of ProjectSite Visit

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Loan/SecurityDocumentation

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Fig. 2 Typical Finnvera financing.

security documentation with theborrower, and payments are disburseddirectly to Wärtsilä under the terms ofthe EPC Contract.

The guarantee from the ECA not onlyallows the bank to fund the loan andassume the residual risk. The bank canalso price the loan very competitively asthe ECA-covered portion is virtuallyrisk-free and therefore the bank margintypically is only for the uncovered portion.The ECA is paid a flat upfront fee forproviding the comprehensive guarantee.The flat fee varies depending on the riskcategorization of the host country, thestructure of the financing and its tenor(when the payments fall due).

Uses of funds covered by the ECAguarantee include up to 85% of theEPC Contract amount, 85% of theinterest during construction (IDC)1 and,on a case by case basis, 85% of theECA flat fee. The borrower is required topay a downpayment of 15% of the EPCContract amount, 15% of the IDC andthe ECA flat fee, and all of the fundingbank’s fees, legal and closing costs.

With the ECA guarantees, banks areable to provide construction financingand term financing up to 10-12 yearsdepending on how long a tenor the ECAis willing to support. ECAs or theiraffiliates are also able to offerinterest-rate equalization support byoffering a fixed CIRR rate – this allowsborrowers to lock in a fixed interest ratefor the term of the loan when the EPCContract is signed.

ECAs require that the power projects

that they finance conform to bothapplicable World Bank and localenvironmental guidelines, establish anenvironmental impact study and meetcorporate responsibility criteria.

ECAs can participate in financingthrough a series of different structures:a) Corporate borrowing, where theWärtsilä customer is the direct borrowerb) Project borrowing, where theborrower is a special-purpose companyhaving contracts with credit worthyparties, andc) Bank guarantees or on-lending,where the borrower is a financialinstitution who, in turn, ‘on-lends’ thefunds to a corporate borrower or into aproject finance structure.

ECA requirementsECA requirements for providing acomprehensive guarantee varydepending on the type of risk, e.g.Corporate Credit, Bank Guarantee(on-lending) or Project Finance.

Corporate finance concerns� Significant presence of the borrowerwithin its industry or sector.� Access to diversified sources offunding.� Stable and experiencedmanagement.� Clear and achievable strategy.� Regular financial information andtransparent accounting practices.� Sound capital and debt structure.� Stable and identifiable cashflows inrelation to debt service.

� Pari-passu treatment with othercreditors.

Project finance concerns� Strong sponsors with industryexperience and on-going financialinterest to support the project over itslifetime.� As a general rule: no market risk onfuel supply or on the output.� Use of well proven technology.� Clarity of source of repayment, inparticular creditworthy off-takers.� PPAs priced according to prevailingmarket conditions since recent historyhas seen the renegotiation of existingPPAs in both emerging markets andindustrialized countries.� Stable legal, tax and regulatoryenvironment.

Bank risk sharing� Risk-taking on local banks, either forbank-guaranteed transactions orbank-to-bank financing with on-lendingto the end buyer is generally the bestrisk mitigation alternative. Commercialbanks have a network of correspondentbanks all over the world. These followthe credit rating of those counterpartieson a routine basis for the trade financebusiness, and are therefore morecomfortable with bank risk thancorporate or project risk. This is alsovalid for ECAs.� The ownership, capitalization, assetquality and profitability of a bank are themain credit risk elements.� The possibility of support from the


Drivers and trends

state in case of financial crisis is also animportant issue for risk analysis.

Lufussa – an ECA success storyLuz y Fuerza de San Lorenzo S.A. deC.V. (Lufussa), an existing Wärtsiläcustomer, already operating an 80 MWWärtsilä power plant since 1999(Pavana II), was awarded a 210 MW

power purchase agreement (PPA) byENEE, the state-owned electricity utilityof Honduras. The PPA is supported bya 267 MW heavy fuel oil power plant(Pavana III) also being built by Wärtsilä(see the previous article).

The Central American Bank forEconomic Integration (CABEI) isproviding senior debt to the project.

Nordea Bank Finland plc, one ofWärtsilä’s main relationship banks, isproviding an 87 million USD loan toCABEI backed by a comprehensiveguarantee from Finnvera.

The bank-to-bank lending structurewith the sole purpose of on-lending toLufussa enabled Lufussa to access highECA coverage and a reasonable rate.

Pavana III will be the largest powerplant in Honduras, the largesttransaction that CABEI has made in theprivate sector, and the largesttransaction Finnvera has completed inthe power sector. �

Footnote:1) In the case of Project Financing.


New Sri Lanka order for Wärtsilä

In August 2003 Wärtsilä received acontract to supply a 100 MW turnkeypower plant to the Heladhanaviproject in Puttalam, Sri Lanka. The

customer for the plant is Lakdhanavi, anIndependent Power Producer (IPP)company. The energy will be distributedto the national grid under a powerpurchase agreement for 10 years.

Wärtsilä will deliver all the equipment,including six Wärtsilä 18V46 dieselgenerating sets running on heavy fueloil, plus auxiliaries, switchyard and11/132 kV power transformers, as wellas the power house.

Although the plant construction willbe a straightforward project, the deliveryitself will be challenging. The diesel

generating sets will be transported onriver barges north from Sri Lanka’s

capital Colombo before making a beachlanding, because the local roads are notcapable of carrying the heavy engines.

Wärtsilä has a strong track recordwith Lakdhanavi, having supplied a 27MW power plant to the company sixyears ago. This installation has beensuccessfully operated by thecustomer’s own experienced personnel.

Wärtsilä was able to work closelywith Lakdhanavi from day one to makethe tariff bid competitive. Theequipment delivery will be made at theend of the year, with commercialoperation expected to begin in August2004. �

Sri Lanka

Puttalam

What’s new

Pavana II, an 80 MW Wärtsilä baseload power plant.

The 40 MW Estrella DelNorte’s success storystarted more than 14 yearsago in June 1989 when the

contract was signed by Wärtsiläand Seaboard Corporation’ssubsidiary, TranscontinentalCapital Corporation Ltd. Thatwas followed by a hectic periodcompleting the final design andtechnical specifications, as wellas the construction andcommissioning of the powerplant.

Estrella Del Norte arrived in SantoDomingo, capital of the DominicanRepublic, on 28 December 1989, lessthan seven months after the contractwas signed. The power plant, the firstIndependent Power Producer (IPP) inthe Dominican Republic, startedproducing power for consumers inJanuary 1990, only three weeks after itsarrival in Santo Domingo.

Record reliabilitySince its commercial operation began,


Power for the long term

Estrella Del Norte power barge –15 years of successful operation

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ByDimiter Kourdov, Manager, Estrella Del NorteJohan Pellas, Manager CBM, Technical Service, Wärtsilä Finland Oy

Estrella Del Norte has produced almost four million MWh forconsumers throughout the country. During this period, mostof the Wärtsilä engines installed in the power plant – five18V32 and two 16V32 units operating on heavy fuel oil – haveexceeded 100,000 operating hours. Some of the engineshave even operated for more than 108,000 hours.

In September 2002, Estrella Del Norte became the firstWärtsilä 32 power plant diesel engine operating on heavy fueloil to exceed 100,000 hours in the Americas region.

To better understand the typical heavy fuel oil used duringthe years, the technical specifications for this fuel include:

Viscosity 380 cSt at 50ºCDensity 980 - 990 kg / m3 at 15ºCSulphur content Up to 2%-massAsh Up to 0.1%-massVanadium content 150 - 200 ppmSodium content 50 ppmCCR 11 - 14%-massAsphaltenes 12%-massCCAI value 840 - 850

Estrella Del Norte has been and continues to be one of themost reliable power plants in the Dominican Republic. Someof its more impressive statistics include:� Availability higher than 95% over the years.� Among the best of all power plants in the Dominican

Republic in terms of net heat rate.� At the top of the list for most cost-effective power

producers in the Dominican Republic.

According to Mr Dimiter Kourdov, Estrella Del Norte’s plantmanager since the beginning of operations, several factorshave contributed to the plant’s continued success:� Crew members are motivated and well trained in all

aspects of the operation, including maintenance andsafety.

� Some of the crew members have been working at thepower plant since the beginning of operation, thus sharinga wide range of knowledge and history to other members.Mr Kourdov emphasized the significance of this experiencein terms of daily operations and problem resolution.

� Several of the Estrella Del Norte’s crew members havebeen trained at Wärtsilä factory training centres.

� Technical support, when needed, from the supplier as wellas Seaboard Ship Management, Inc. is outstanding.

� The installations are well maintained.� The equipment was designed with precision according to

specifications. Mr Kourdov stressed the importance ofdesigning the equipment for ‘real operating conditions’. Hereiterated that the equipment must be able to operate intropical conditions with a high ambient temperatures of upto 35ºC and high humidity ranging between 80 and 95% aswell as operate on low-cost heavy fuel oil.

With a designed lifespan of the barge of approximately 30-35years, the Wärtsilä-made diesel engines could reach 200,000to 300,000 operating hours and produce 10 million MWhduring Estrella Del Norte’s lifespan.

Floating powerThe floating power plant concept developed by Wärtsilä at theend of the 1980s has proved very successful. More than 20such power barges have been built and delivered to differentsites around the world.

Similarly, Seaboard/Transcontinental Capital Corporation’sdecision in the late 1980s to adopt a floating power bargewas a bold and successful move. Based on the excellentperformance of Estrella del Norte, the company decided in2000 to acquire a second floating power barge – the 72 MWEstrella del Mar based on seven units of Wärtsilä 18V38engines.

More details of the 40 MW floating barge Estrella Del Nortecan be found in Wärtsilä Power News No 1, 1990. �


The Seaboard EDN power barge is well placed in themerit listing for the dispatch of power plants.

Under the Kyoto Protocol the EuropeanUnion is committed to reducing itsgreenhouse gas emissions by 8%between 2008 and 2012 compared with1990 levels. Clean energy will be one ofthe main means of achieving this goal.Accordingly, the European Commissionhas set the target of doubling thepercentage of renewable sources in thetotal primary energy supply.

The measures include increasingelectricity production ten-fold based onbiofuels by 2010. This will requireinvestments of at least EUR 25 billion inequipment and systems, much of whichwill be spent on combined heat andpower (CHP) production relying on localbiomass supplies.

Biomass resources, however, arescattered in numerous relatively small,local sources and fuel costs willtherefore depend strongly on localdemand and transport distances. Thedistances tend to grow as demandincreases, resulting in rapidly increasingcosts. Hence the most practical andeconomical solution is to build smallerdecentralized biopower plants.

Business environmentdefines productsThe economies of scale rule says thatthe smaller the steam power plant, the

higher the specific investment cost.Wärtsilä is not attempting to change thisrule, but there is another axiom toremember in this context: productmodularization and standardization,followed by serial production of multiplesimilar products and projects – verychallenging in large projects – iscertainly possible in small-scale plants.It also brings considerable cost savings,enabling the use of inexpensive localbiomass resources and the constructionof profitable decentralized biopowerplants.

Subsidy schemes are initiallyrequired to make it possible for thepower plant suppliers to get into ‘serialproduction mode’, while of course thefinal target for the industry must be tomake biopower competitive with allother ways of producing electricitywithout subsidies.

The EU has set new rules and goalsfor the free energy market, whiledelegating the practical measures andsubsidy policies to member countries.Consequently, the types of renewableenergy subsidies vary widely fromcountry to country and include directinvestment, energy-based subsidies likegreen certificates, fossil fuel andemission taxes, and even emissionstrading.

According to Mr Jussi Heikkinen,Vice President of Wärtsilä Biopower, thedifferent subsidy policies together withlocal conditions strongly guide how theoptimum products for each market aredefined and engineered.

“Whatever the subsidy system orlocal situation, real investment decisionsare made only when an adequatelyshort payback is available to theinvestor,” he says.

“We have now introduced twomodular biopower plant products withprocess parameters that make themcommercially feasible in most EUcountries as well as Eastern Europe,Russia, North America, Chile and othercountries where suitable wood-basedfuels and heat and electricity needsexist,” Heikkinen explains.

While expanding with the BioPowerproducts to new markets, WärtsiläBiopower is continuously selling andsupplying biofuelled heat boiler plantswith a capacity range of 3 – 17 MWth toScandinavia, the Baltic countries,Sweden and Russia.

The BioGrate technology, based ona patented, rotating grate, provides astable combustion process forwood-based biofuels with a moisturecontent up to 65%.

Electricity is produced in a steam


Meeting the world’s energy needs

Wärtsilä Biopower steps into theglobal arena By Lauri Kinnunen, TechKnowledge.

Based on an interview with Jussi Heikkinen,Vice President, Wärtsilä Biopower unit.

Two years ago Wärtsilä took thestrategic decision to expand itspower plant business intodecentralized biopower plants and

to become the first global supplier ofsuch plants. Wärtsilä Biopower, abusiness unit within Wärtsilä’s PowerPlants division, has since moved aheadlike a train. The first biopower plantreferences and new orders on handspeak for themselves. Biopower’sannual sales are growing rapidly.

A typical BioPower 5 project: 7 MEUR%

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Rankine cycle, the parameters of whichhave been selected to optimize theprofitability of the investment for theplant owner.

The plants are as far as possibleprefabricated in modules. This makesinstallation on site fast and easy, savingboth time and money. Operation costsare minimized since the power plantscan run unmanned overnight underremote control.

Wärtsilä Biopower will continue tofocus on its competitiveness by furtherimproving the modular structure andreplicability of the power plants.

Breakthrough in chosen marketsBiopower’s technology really comesinto its own in areas where biomasses,such as sawdust and bark, areproduced as byproducts, and wherethe heat produced in the powergeneration process can be usedefficiently in industrial processes or asdistrict heat for the local community.

The initial target market was Finlandas it is always practical for the supplierto have its first plants close by to enablethe fastest response to all issues. Thefirst two contracts were signed inFinland with Finnforest Oyj in April 2003and the power plants – a BioPower


Make-up water

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= option

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Multicyclone/ESP

Fig. 2 Flow chart of the BioPower 5 CHP.

Fig. 3 The plants supplied by Wärtsilä Biopower to Finnforest’s sawmills will improvethe energy self-sufficiency and long-term competitiveness of the mills.

2 HW and a BioPower 5 HW – are to beput into operation during the autumn of2003.

The second-stage target markets areGreat Britain, Sweden, Canada andChile. The first contract has alreadybeen signed in Ireland with GraingerSawmills for a BioPower 2 ST (see page25) and the plant will be on-line duringspring 2004. Wärtsilä expects additionalorders in Finland and the UK and thefirst orders in the second-stage marketsby early 2004, if not earlier.

Product development and marketpenetration have proceeded as set outin the original Biopower strategy.Expansion of the power range as wellas the fuel range will follow.

Strong future role forrenewable energyRenewable bioenergy has been giventhe political support necessary to grow

towards the targets of the EU and othernations. Market instruments such asgreen certificates will be allowed toreach price levels that enable adequateprofitability for plant owners. Especiallythose customers who have a suitableheat load available should carefullyconsider constructing a biopower plantinstead of a heat boiler in order to fullyutilize the commercial value of theloads.

Wärtsilä has decided to be in thefront line of solution suppliers to thosewho have decided to make a move intothe future. Wärtsilä concentrates onsmall- to medium-sized plants suitablefor decentralized energy production withlocal biofuels, and supplies spare partsand services for maintainance andoperation of the plants. �


“We have introduced two revolutionary biopowerplant products for customers who want to createa new competitive position for the future,” says MrJussi Heikkinen, Vice President of WärtsiläBiopower.

Two power plant products forthe western marketAfter a comprehensive study including local markets, subsidy policy, energy pricesand trends, access to a variety of local biofuels and other local conditions, WärtsiläBiopower has selected two initial customer groups for its biopower plants:� The mechanical wood processing industry, i.e. sawmills and similar.� Other industries and municipalities with access to competitive wood-based

biofuels.Intensive product definition and engineering provided two modular biopower plantsfor these customers: the BioPower 2 and the BioPower 5.

BioPower 2 MWe MWth Heat parameters

*BioPower 2 2.3 - Power only

*BioPower 2 DH 1.7 7.7 50/90 ºC district heating

*BioPower 2 HW 1.3 8.0 90/115 ºC hot water

*BioPower 2 ST 1.0 11.5 4 bar process steam

BioPower 5 CHP MWe MWth Heat parameters

*BioPower 5 4.5 - Power only

*BioPower 5 DH 3.5 13.0 50/90 ºC district heating

*BioPower 5 HW 2.9 13,5 90/115 ºC hot water

*BioPower 5 ST 2.3 20.5 4 bar process steam

Table 1. Main performance data.

Meeting the world’s energy needs

Track record decisiveThe breakthrough was the result oftrust, feasibility, technology andenvironmental values combined withinnovative plant concepts. FinnforestOyj bought the first BioGrate technologyfrom Sermet (today Wärtsilä Biopower)back in 1994. The new orders bring thenumber of BioGrate-plants owned byFinnforest Oyj to nine, six of themoperating to the full satisfaction of theowner and two under construction.

Finnforest is a front-line woodproduct company with €1.8 billion innet sales and about 7700 employees.The company, which is the mechanicaltimber processing arm of the largeFinnish Metsäliitto Group, is present in21 countries. Finnforest’s maincompany values – profitability, courage,vision, delight in work and soundenvironment – closely match those ofWärtsilä and was therefore a desirablepartner for Biopower.


Inside view

By Jari KartanoDirector, Sales and MarketingWärtsilä Biopower unit

Biopower forFinnforest’s sawmillsIn April 2003 Finnforest Oyj and Wärtsilä Biopower signed anagreement to supply two BioPower CHP plants and one BioEnergyplant to the Vilppula and Renko sawmills. Finnforest, the leadingwood product company in Europe, valued self-sufficiency in theirenergy production and the fast-track delivery philosophy of WärtsiläBiopower. Both plants will produce electricity and heat this yearand are therefore good examples of this philosophy.

Towards self-sufficiencyThe Vilppula sawmill is one of thelargest in Europe. They process around1.35 million m3 of spruce every year,which roughly corresponds to 140 truck(18-wheeler) loads every day of the yearif all the timber were transported bytruck.

To handle, cut and dry such aquantity of wood Vilppula needs notonly the latest cutting technology butalso reliable power and thermal energy.In fact, the sawmills’ energy bill is clearlyone of the largest production costitems, after timber purchasing, that theyhave to pay out of their €120 millionannual timber sales. The recent historyof unexpected energy price trends wasone of the reasons for Finnforest’sdecision to control that cost andproduce the energy themselves.

Besides the main product, which is600,000 m3 of timber, the mill alsoproduces almost the same amount ofchips and saw powder for fibreproduction, as well as more than 300GWh equivalent of bark, which is easilyconverted into energy at the sawmill.

The new BioPower 5 and BioEnergy 9plants will consume 180 GWh of thisamount annually, or roughly 60% of thetotal bark production, converting it into22 GWh of electricity and 132 GWh ofthermal energy. This will cover 70% ofthe mill’s electrical consumption and100% of their thermal energy need fordrying the lumber, as well as heatingthe nearby town of Vilppula with its5000 inhabitants. District heating energysales will generate valuable additionalincome and thus further improve thefeasibility of the project.

Fast delivery to all marketsBoth the BioPower 5 plant and the twoBioEnergy 9 plants are scheduled to bein production this December and will behanded over in early 2004. WärtsiläBiopower is also constructing aBioPower 2 CHP plant for Finnforest’sRenko sawmill with the same schedule.These projects with their hectic deliveryschedules have strengthened the trustand partnership between Finnforest andWärtsilä Biopower, and have givenWärtsilä Biopower an experience thatcan be copied and used in futureprojects. �


Make-up water

Feed water

Hot water

Condense

Steam

Air

Flue gas

Ash

Fuel

Feed water tank

Watertreatment

To process

From process

Steamturbine

Fuel storage

Ashcontainer

Multicyclone/ESP

Ashcontainer

BioGrate

BioGrate

50 bar / 450°C

115°C

90°C

Main flow chart of the Vilppula BioPower plant.

Inside view


Grainger Sawmills take BioPower CHP plant

Wärtsilä Biopower signed its firstcontract in Ireland on 12September 2003 to supply awood-fired biomass combined

heat and power (CHP) plant. The clientis Independent Biomass Systems, ajoint-venture company owned by twoIrish firms: South Western ServicesCo-operative Society Limited (SWSGroup) and Irish Soft Woods Ltd(Grainger Sawmills Ltd).The contract isan extensive EPC delivery consisting ofa BioPower 2 CHP plant with aBioGrate biofuel combustion chamber,steam boiler and steam turbine and thebuilding itself. It also includesconnections to the customer’s sawmillprocesses, as well as an extensive400 m long fuel conveyance systemfrom the sawmills. Wärtsilä Service hasbeen awarded a five-year operationsupervision and maintenanceagreement with the plant.

Burning wood residues from the millwith a moisture content as high as 65%,the CHP plant will generate both1.83 MW of electrical energy and3.5 MW of thermal energy in a single

process. The thermal output will beused to dry construction timber in thesawmill’s kilns.

The 1.83 MW of power generated bythe CHP plant will be sold to thenational grid under a 6th alternativeenergy requirement (AER VI)programme. An AER VI involves the saleof ‘green’ or renewable electricity in astructured bid price to the grid. Under

these contracts wind, biomass andbiomass CHP are all capped at differentprices.

When in commercial operation, theplant will yield significant benefits to theGrainger Sawmill:� Reduced cost of electricity and heat

consumed on site, thus enabling themanagement of price increase forelectricity and heat.

� Reduced exposure when ClimateChange Levies are introduced.

� A secure market for the existing levelof low-value mill waste products andmanaged risk associated withfluctuations in market price.

� Reduced traffic in transportingresidues off site.

The power plant is scheduled to startcommercial operation in May 2004.

This contract marks an importantbreakthrough for Wärtsilä Biopower intothe Irish and UK market. The plant is thefirst CHP installation in Ireland designedto burn sawmill byproducts. It will thusserve as a good example of provenFinnish CHP technology and itssuitability in the Irish environment. �

Wärtsilä seals deal with Russian sawmill

As the need for environmentallyfriendly energy increasesworldwide, Wärtsilä has signedan agreement with Russian

sawmill Yeniseisbyt to deliver an8 MWth BioEnergy boiler plant.

The contract calls for a turnkeydelivery comprising the manufacture,installation and commissioning of theplant’s process equipment. Thecomponents will be manufactured at aWärtsilä facility in Kiuruvesi, Finland,and then transferred in modules to thesite in the Krasnoyarsk region. WärtsiläPower Plants, Biopower will alsoprovide local onsite training.

The boiler will be fuelled by bark,sawdust and woodchips burned usingWärtsilä’s patented BioGratetechnology. The boiler will have adesign pressure of 10 bar and thesupply water will reach temperaturesof 150 °C. The plant is intended toprovide thermal energy for the

sawmill’s drying kilns and will also heatthe building itself.

“For Yeniseisbyt, there was nocompetition – Wärtsilä’s reputation andknowledge is highly respected.Excellent references from an existingcustomer, strong confidence inWärtsilä’s BioGrate technology, and fast

delivery made it the natural choice,”commented a Yeniseisbyt spokesman.

The project handover is expected totake place on 31 January 2004. �

What’s new

Krasnoyarsk

Grainger Sawmills

Ireland

Turkey is investing heavily innew infrastructure todeliver gas and oil to aneconomy increasingly

hungry for energy. The gradualprivatization of the market and aspate of new projects, plantsand pipelines mean substantialnew opportunities for energycompanies in the region.

The gap in Turkey’s energy supply anddemand is a key factor driving itsenergy policy. The country has a rapidlygrowing economy and, coupled with apopulation of over 70 million, is facing arising need for energy of 8% per year.

Privatization of the energy sector in1984 has resulted in a considerablemarket expansion, which has gonesome way to meeting the country’spower demands. However, the processhas been gradual, and the most recentlaw regarding the liberalized energymarket was only enacted in March thisyear.

The aim of the new government,which came to power at the beginningof 2003, is to implement newregulations to improve the currentmarket. Its programme consists of thefollowing aims:� Opening the energy market for

competition,� bringing down the cost of electricity

bills, and� removing other burdens on energy

prices by creating a more efficientgeneration and distribution network.

A key part of this new approach isreducing the environmental impact fromenergy generation emissions. As aresult, natural gas is becomingincreasingly important in powergeneration for the region.

The country needs to investapproximately 30 billion US$ over aperiod of ten years to build a natural gasdistribution network system to reach 60major cities around the country, andthere are currently only ten citiesconnected to the system.

Energy rich Caspian SeaThe oil and gas potential of the Caspiansea, considered a ‘second North Sea’,is estimated at 179-195 billion barrels ofoil and 157-186 trillion cubic metres of

natural gas. Oil consuming countriesand foreign investors are currentlysearching for viable export routes forthe projected production.

In particular, Turkey – whichstraddles the Caspian basin and Europe– forms a natural energy bridgebetween the source-rich countries andthe energy-hungry world markets.Consequently, the country has investedin large infrastructure projects involvingthe transportation of hydrocarbonreserves from the Caspian through itsterritory: namely, the Baku-Tbilisi-Ceyhan(BTC) Pipeline, and the Trans-Caspiangas pipeline project.

Wärtsilä and the BTCWärtsilä has been active in the Turkishmarket for a good ten years, achieving

in that period a remarkable marketpenetration of more than 60% based onengine-driven power generationtechnologies. With projects such as the100 MW order to supply pumping unitsto the BTC Pipeline (see also article onBTC string test on the following pages),Wärtsilä is ideally placed to continuesupplying energy solutions for Turkey’semerging energy market.

Wärtsilä was contracted to supply 18oil pumping units for four pumpingstations along the Turkish section of thePipeline, stretching from the Caspiansea to the Turkish port of Ceyhan onthe Mediterranean coast. The firstWärtsilä 34SG gas-fired engines,including gearboxes and centrifugalpumps, have now been delivered andwill be due to pump oil in 2005.


Generating power for developing markets

Turkey – an active energy market

Aksa-Samsun, Turkey, a 123 MW baseload power plant.

Aksa pushes Wärtsilä total inTurkey over 1000 MWAs well as working on this major infra-structure project, Wärtsilä hascontinued to provide energy solutionsfor plants across Turkey. The companyrecently exceeded the 1000 MW markfor supplying power, following an orderreceived in April for the Aksa heavy fueloil power plant.

The Aksa plant is owned by AksaEnerji Uretim, part of the Aksa Groupwhich belongs to Kazanci Holding. AksaEnerji was established 1997 to invest,develop and operate power plantprojects. Today, Aksa plants producemore than 250 MW of power. Aksa alsomanufactures small diesel generatingsets in the 0.8 to 2000 kW range, and itsmarket share in Turkey exceeds 60% inthis sector.

Wärtsilä delivered two 18V46engines with related auxiliaries to theAksa plant at the end of May 2003,giving a total output of 34 MWe. Plantoperation began this autumn. Electricitygenerated at the plant is fed to thenational grid, using three outgoingpower lines. Aksa operates 24 Wärtsiläengines, so spare parts and servicelogistics are already well established atthe site.

The plant has optimizedenvironmental solutions – includingwaste treatment handling – in order toavoid pollution. Wärtsilä’s reputation forproviding environmentally friendlytechnology was one of the factorsleading to Aksa’s choice, as well as thecompany’s long-term relationship withthe company and the region.

Other considerations supporting

Aksa’s decision included the shortdelivery timeframe for the project, inaddition to the engine performance, lowmaintenance and fuel consumptioncosts associated with Wärtsilätechnology.

Award-winning CHP plantsWärtsilä has also been very successfulin delivering combined heat and power(CHP) plants to the region. In fact,Turkey’s leading manufacturer of homeappliances, Arçelik A.S., has twoWärtsilä powered plants, both of whichhave won a number of national andinternational awards.

Arçelik Washing Machine PlantBased in Çayirova, the Arçelik A.S.Washing Machine Plant (WMP)cogeneration plant, constructed by


Compiled by Pilot Communications

Manisa, Turkey, a 54 MW baseload power plant.

The award winning Arçelik WMP CHP plant, 6.5 MW.

Wärtsilä in 1994, has one Wärtsilä18V32GD engine with an output of 6.5MWe. The facility is in fact atri-generation plant, producing steam,hot water and chilled water. The totalefficiency of the plant is 67%. Thiscomprises of 41.3% electricity, 20.1%heat and 5.6% chilled water.

Wärtsilä has also had a maintenancecontract with the WMP power plantsince 2000.

WMP is one of the largestfront-loading automatic washingmachine manufacturers in Europe, andproduced 1,350,000 units in 2002.Export volume has almost doubled andhas reached 65% of the factory’s totalproduction in the last three years.Quality, productivity and excellencehave earned the WMP national andinternational awards, including first prizein the Most Successful CogenerationPlant of the year award given by theInternational Cogeneration, CombinedCycle and Environment Conference(ICCI).

In addition to this accolade, WMPwas chosen from among 177international companies to receive theTPM Excellence Award of World TotalProductivity Management 2002. Theaward was presented to the plant bythe Japanese Institute of PlantMaintenance (JIPM). It has now been

declared ‘The Best Washing MachineFactory in the World’.

The WMP plant also has ISO 9001certification, which sets its qualityassurance and production systemprocesses to international standards.Plant procedure – an EnvironmentalManagement System determined byISO 14001 – is always sensitive andrespectful to nature and theenvironment at every stage.

Arçelik Refrigeration PlantThe Arçelik A.S. Refrigerator Plant (RP)in Eskisehir has one Wärtsilä 18V32GDengine. The total efficiency of the plantis 77%, of which 40.4% is electricity,10.2% hot water and 26.4% chilledwater in the summer months. In winter,the breakdown is 40.4% electricity,21.5% hot water and 15.1% chilledwater.

Wärtsilä has had a maintenancecontract with the RP plant since 2000.

RP is one of the world’s leadingrefrigerator producers, with a recordproduction of 1,600,000 units in 2002.The third biggest company in Europewith manufacturing facilities in onelocation has an export volume of 70%.Arçelik A.S.R.P has a 12% market sharein the refrigerator market in England.

The RP plant won second place for aSuccessful Cogeneration Plant at the

ICCI conference, after its sistercompany. This was accepted onArçelik’s behalf by Mr Mustafa Esenlik,Manufacturing Manager. Like ArçelikWMP, it has ISO 9001 Certification forapplications relating to quality andenvironmental consideration.

Further opportunitiesTurkey’s rapidly expanding energysector has created substantialopportunities for companies such asWärtsilä to achieve considerable marketpenetration. Wärtsilä looks forward tocementing further successes in theregion. �


References


Kirikkale, Turkey, a 153 MW baseload power plant.

BTC Co. Ltd is responsible forthe design, installation andoperation of a pipeline to carrycrude oil from Azerbaijan viaGeorgia to the Mediterraneanport of Ceyhan in Turkey. BTC,the initials BTC stand forBaku-Tbilisi-Ceyhan, havesubdivided the works intoseparate contracts for eachcountry, with the Turkish sectorawarded to Botas PetroleumPipeline Company.

For the pipeline in Turkey, Botas havecontracted Wärtsilä to provide thepumps and drivers, plus site supervisionand commissioning, for the four pumpstations. The pipeline in Turkeyrepresents approximately 1070 km ofthe total 1790 km long pipeline. Thepipe, with a diameter of 42 inches (1067mm), will have a maximum flow ofapproximately 1 million barrels per day(approximately 6700 m3/h).

The pumping stations are atelevations of 1600 m to 2140 m. The

Wärtsilä 34SG engines, fuelled bynatural gas, will be used as pumpdrivers via a step-up gearbox. There are14 pump sets with Wärtsilä 18V34SGengines, plus a further four pump setswith Wärtsilä 12V34SG engines. Thepumps are connected in parallel andalso in series. The pump capacities are1675 m3/h and 6700 m3/h with amaximum differential pressure of 86 bar.

Wärtsilä was awarded the contract tosupply the pumps and drivers inSeptember 2002. Botas required the


Inside view

BTC pumping units – string testsuccessfully completed By Sakari Koivuniemi

General Manager, Engineering ServicesWärtsilä Finland Oy

first delivery of equipment inmid-September 2003 with the lastdelivery in January 2004. The completepipeline is scheduled to be operationalduring the first quarter of 2005.

Building a string testIt is general practice in the oil and gasindustry to include a ‘string testdemonstration’ within the equipmentsupply. The purpose of the string test isto verify the dynamics and responses ofthe total drive train in a factory testingcell, simulating site conditions.

The BTC project required two stringtests: one for Pump Station No. 1, witha Wärtsilä 18V34SG driver and doubleimpeller pump, and the second forPump Station No. 2, with a Wärtsilä12V34SG driver and single impellerpump.

The complete set of equipment for astring test consists of the engine driver,connected to a pump skid which

comprises the pump and gearbox, alube oil skid for the pump and gearbox,a seal oil skid for the pump seals, a pipemodule skid, control panels and a ringpipe.

A kick-off meeting was held todetermine the project organization andprocedures required, and a String TestProject Team (STPT) was appointed inAugust 2002. This multi-disciplinedteam comprised 30 membersresponsible for all design, purchasing,site works and string test performance.

The STPT was tasked to design,purchase, install and run the string test,taking into consideration contractperformance criteria that includedquality assurance and statutory healthsafety and environmental aspects. Theprimary task of the team was todemonstrate the controllable flow rateof the pumps between 650 m3/h and6700 m3/h with engine speed varyingfrom 525 to 750 rpm.

Test cell adaptedThe planning phase of the string teststarted at the end of August 2002. Testcell 11 at Wärtsilä’s Vaasa Factory wasutilised and was reserved for the periodApril-June 2003. The pipe loop, aclosed, 1200 mm diameter ring pipewas installed on the ground outside thetest cell, and included a drag valve toadjust the pressure between 0–160 barand the flow between 7500–0 m3/h.The first unit to be tested was installedduring April 2002 with some minormodifications made to Test cell 11.

The sequence of plant installationmirrored the site layout used in Turkey,but with the added problem of workingin a confined area. The pump wastreated as the reference point andsecured to the ring pipe. The enginedriver and pump skid were then aligned,and the remaining equipment – pipemodule, electrical panels, seal oilsystem etc. – was fitted. After


5.5 m / 36.5 tons

7.9 m / 74 tons

Inside view

The BTC order comprises:� 4 x Wärtsilä 12V34SG with speedincreasing gearboxes and centrifugalpumps.� 14 x Wärtsilä 18V34SG with speedincreasing gearboxes and centrifugalpumps.

Pump Station Data

Pump Stations Configuration Engine Altitude Site

PT1 Parallel 4+1 18V34SG 2140 m Posof

PT2 Series 3+1 12V34SG 1718 m Pasinler

PT3 Parallel 4+1 18V34SG 2028 m Çayirli

PT4 Series 3+1 18V34SG 1595 m Altinyayla

precommissioning, the first rotation andtest of the system was finalized on 21May 2003.

Hands-on experience forinspectorsAn additional monitor and keyboardwere installed in the control room solelyfor use by the client’s inspectors. Thisbecame invaluable as some of themwould later be responsible for pumpstation management, and they weretherefore able to gain first-handknowledge and experience of theirsystem controls.

The first string test was successfullycarried out on 22 May 2003, with 10hours of running, concluding with theclient signing the Approval Certificate at2300 hours.

The STPT then removed the firstpump unit from the test cell andpreparations started for the secondstring test. This involved removing all of

the equipment, leaving only the ringpipe, and then installing the 12V34SGengine, a new pump skid, lube and sealoil skids, pipe module, and controlpanels, all of which was completedwithin three weeks on 10 June 2003.

The first rotation took place thefollowing day and arrangements weremade for the client to witness therunning tests, which were successfullycompleted on 12 June after ninerunning hours.

As head of the STPT, it is a pleasureto report that the client was verysatisfied with the two string tests.Wärtsilä has the necessary in-houseskills for this type of challenging projectincluding, but not limited to, projectmanagement, planning, design,construction, documentation and goodteamwork. �


TURKEY

GEORGIA

AZERBAIJAN

BLACK SEA

MEDITERRANEAN SEA

Istanbul

Ankara

Cayhan

Novosossiysk

Ezurum

Tblisi

ARMENIA

NAKHICHEVAN

IRAN

IRAQSYRIA

CASPIAN SEA

ACG

Baku

Shah Deniz

NREP (Nothern Route Export Pipeline) oilNREP (Transneft owned and operated)WREP (Western Route Export Pipeline) oil

BTC (Baku-Tblisi-Cayhan) oilSCP (South Caucasus Pipeline) gasSCP (Turkish owned and operated)

existing

proposed

0 100 200 300 400 500km

PT1

PT2PT3

PT4

Wärtsilä is the mainsupplier of diesel-drivenpower plants to Yemen,a country dominated by

contrasts between the trendtoward modernization and theisolation due to culture, traditionand poverty, still affecting largeareas. Yemen is typical of acountry requiring dieselgenerator sets owing to itsgeography, limited transmissiongrids and limited loads scatteredover long distances.

Some 23 years ago, at the end of 1979,a new diesel power station was broughtinto service on the outskirts of San’a’,the capital of North Yemen. One yearlater a similar power station wascommissioned in Hodeidah, on the RedSea coast. These were the first powerstations built by Wärtsilä in this unusualcountry, the beginning of a longadventure that continues to this day.

At that time power generation wasalmost non-existent in North Yemen.

Only two power stations had been builta few years earlier and there were notransmission lines; most power wasgenerated using small, isolated gensets.

North Yemen was still in transitionfrom mediaeval isolation to a modernsociety, hampered by several years ofinternal struggle and civil war. SouthYemen was an independent state atthat time after many years as a Britishcolony. The two countries were unifiedin 1990.

The two turnkey power stations builtby Wärtsilä, Dhahban in San’a’ and AlHali in Hodeidah, are still in operationand generating much needed power tothe Yemen grid. Since then Wärtsilä hassold approximately 360 MWe,becoming by far the leading supplier ofdiesel power plants. A summary ofthese projects is shown in the map.

The country and its peopleYemen lies to the southwest of theArabian peninsula. On the mainland itborders Saudi Arabia and Oman, whileon the west and south it is surrounded

by the Red Sea and the Indian Ocean.The territory is mainly rugged and

mountainous, with many peaks morethan 3000 metres high. The centralregion, where the capital city is located,is a high plateau lying at an average of2200 metres above sea level. San’a’itself, where many engines have been orare going to be installed, is situated atan elevation of 3300 m. The major citiesbesides San’a’ are Aden, Taiz andHodeidah.The climate variesconsiderably, being very hot in thecoastal regions and relatively mild onthe plateau. Precipitation, thanks to the



Yemen, a small but challengingpower market By Claudio Patarino, Business Development Manager, Yemen

Wärtsilä Italia S.p.A.

monsoons, is sufficient for sustainingagriculture.

Yemeni society is very traditional andproud of its cultural heritage and stillsuspicious of external influence, afeature accentuated by the recentrevival of fundamentalism. Thepopulation as of 1999 was an estimated19 million with a high birth rate. Thelanguage is Arabic and the religionIslam, the majority of the country beingSunni.

Power generation andtransmissionGeneration, transmission anddistribution of electricity are controlledby Public Electricity Corporation (PEC),the state utility. A main transmissionnetwork, the national grid, connects themajor power stations to the principalload centres, supported by threeisolated grids (Hadramout, Mukalla,Sa’adah).

The total installed capacity of thecountry today is about 840 MWe, ofwhich 450 MWe is produced by steam

turbines and 390 MWe by dieselengines. The real availability, however,is considerably lower owing to frequentoutages caused by maintenance andoperation problems. At the time ofwriting the power available on thenational grid was only 560 MWe,against the 685 MWe installed in thenational grid. Three steam plants inparticular are operating at reducedcapacity.

There are very few IPPs in thecountry. Yemen Cement Corporationowns and operates a small power plant,but a 30 MW diesel station is plannedfor its Amran cement plant. Similarly,the oil companies own and operatediesel generator sets at their extractionsites. The remaining independent poweris produced by small-capacity standbysets for industry and tourism, and smallsets likewise in small villages andremote areas.

All power plants run on liquid fuels,mostly LFO because the cost of LFO toPEC is very low and almost equal to thecost of HFO. Fuel oils are produced

locally by two refineries. Lube oils areimported. However, large natural gasfields in the Marib area, as yetunexploited since there are no gaspipelines, will require sets running onnatural gas. One 300 MW project withgas-fired gas turbines is at the tenderstage (Marib/Safir project).

Wärtsilä’s presenceWärtsilä is the leading supplier of dieselengines to Yemen, having installed 270MWe of power including 224 MWe forPEC (27% of PEC’s installed capacity).

Ongoing contracts for the 60 MWSana’a South power plant and anextension to the Al Rayyan plant, willbring the total MW installed or sold byWärtsilä to 360 MWe, of which 309MWe is for PEC (32% of PEC’s installedcapacity).

Notwithstanding the plannedconstruction of the Marib power stationDiesel generator sets will remaininstrumental for the electricitygeneration in this country. �


Arabian Sea

Gulf of Aden

Red

Sea

Yemen

Saudi Arabia Oman

Somalia

Djibouti

Ethiopia

Eritrea

Perim (Yemen)

Jaza'ir Farasan

Beylul

Aseb

Tadjoura

Berbera

MaydhBoosaaso (Bender Cassim)

Hurdiyo

Caluula

Abha

Jizan

NajranAsh Sharawrah

Wuday'ahSa'dah

HuthHarad

Al Hazm

Hajjah

Salif

Al HudaydahDhamar

Zabid

Ibb

Ta'izzAl Mukha

At TurbahLahij

Aden

Lawdar

Mukayris

Shaqra

Nisab 'Ataq

Habban

Al 'IrqahAhwar

Al Huwaymi

Mijdahah

Al Mukalla Ash Shihr

Sayhut

Al Ghaydah

Habarut

Sanaw

Thamud

Zamakh

Safir Shabwah

Saywun

Ma'rib

Harib

Rida'

Bayhan al Qisab

Minwakh

Sanaa

Djibouti

No defined boundary

Dhahban4 x A420.12, 21 MW5 x 18AV32, 30 MW

Al Qa’a (old Sanaa)1 x 18V200, 3 MW

Sanaa2 x 18V170, 4.5 MW6 x 18V32, 33MW7 x 18V38, 60MW

Al Hali Hodeidah3 x A 420.12, 15.7 MW2 x 18V32, 11MW

Sa’adah2 x 12V200, 5.52 MW

Oseifrah Ta’izz2 x 18V32, 11 MW

Ras Katenib Hodeidah2 x BL230.8 +1 x BL230.20, 5.9 MW

Masila block6 x 18V32, 29.6 MW

Al Rayyan,4 x 18V38, 40 MW1 x 18V38, 10 MW

Mukhalla3 x 12V200, 8.3MW

Louder1 x 8R32, 3 MW

Aden4 x 12V200, 10 MW2 x 18V32, 11MW4 x 12V200, 10.8 MW

Hadramout6 x BL 230.18, 18MW

What’s new...... on landOCP pumping project in EcuadorOn 5 September the first batch of400,000 barrels of crude oil reached theport of Esmeraldas in Ecuador,transported through the OCP pipeline.The oil started its way from theAmazonas basin on the other side ofthe country and on its journey had totraverse the peaks of the 4000 m highAndes. Providing the power for thisdaunting task are 22 Wärtsilä 12V32crude oil fuelled pumping sets, whichform the heart of the newly inauguratedOCP pipeline.

The pipeline, with a capacity of544,000 barrels per day, is sourcingEcuador’s oil fields in the AmazonasBasin and will provide export oil valuedat 40% of the Ecuadorian nationalbudget.

The 503 km pipeline project began inJune 2001 and construction started in2002 with an investment of more than1.4 billion US$. The first oil batch hasbeen delivered to a refinery in Peru.

In early October 2003, the capacitytests were carried out to full customersatisfaction, even exceeding theplanned flow rates.

PentesileaWärtsilä has signed a contract to supplya renewable power plant in southernItaly that will burn vegetable oils, atechnique now made possible by recentWärtsilä technological development toenlarge the fuel range capability of itsengines. The plant is based on twoWärtsilä 18V32 engines giving a totalpower output of 16 MWe. The contracthas an option for an additional 8 MWeunit.

The power plant is scheduled to startup in April 2004 and will exploit thecurrent ‘green certificate’ businessaccording to renewable energy rules. Aheat recovery system will maximizesteam production.

New Operation & MaintenanceordersWärtsilä Operations & Maintenance hadO&M contracts covering 128installations at the end of September.The projects are located in 27 countriesand have a total output of 2215 MW.Some major new O&M contractssigned May-September:� Saudi Arabia: 5-year contract with

MEPCO covering operation andmaintenance of an 8.6 MW powerplant consisting of two Wärtsilä Vasa12V32LN engines.

� Sweden: 8-year contract withGöteborg Energi (GEAB) coveringoperation and maintenance of a12.8 MW power plant comprisingthree Wärtsilä 18V28SG engines.

� India: 10-year contract with OPGPower covering operation andmaintenance of an 18 MW powerplant with three Wärtsilä 18V34SGengines.

� India: Indorama Synthetics hassigned an O&M agreement for sixyears with Wärtsilä for the operation& maintenance of a 52.6 MW powerplant, which consists of three

Wärtsilä 16V46 and three Wärtsilä12V32 engines.

Wärtsilä updates its ConditionBased Maintenance packageThis summer, Wärtsilä updated itsConditioned Based Maintenance (CBM)package in response to the need formaintenance programmes capable ofsatisfying the demands of increasinglysophisticated equipment.

In addition to users receiving regularCBM reports, they can also connect toWärtsilä online services where they canaccess the latest CBM information aswell as service bulletins, technicalmanuals and spare parts.

CBM and Remote Monitoringsolutions support the daily operation ofthe installation by applying Wärtsilä'sexperience and operation knowledge.This keeps the thermal and mechanicalload at an optimum level for operation

conditions, and enables savings in fuelconsumption, while simultaneouslyproviding a more environmentallyfriendly operation.The CBM process isapplicable both to marine and powerplant applications

By the end of August 2003, 108engines were connected to the WärtsiläCBM system, with 20 installations and 70engines awaiting connection still this year.

... at seaWärtsilä to power novelpropulsion conceptWärtsilä Corporation has been awardeda contract by Mitsubishi HeavyIndustries to supply eight Wärtsilä12V46 medium-speed diesel enginesfor two new ferries ordered byShin-Nihonkai Ferry of Osaka in Japan.The twin Wärtsilä 46C main enginesused for mechanical drive of the main


What’s new

An official dinner in Quito, related to the Oil & Power exhibition and to OCP, on 4September 2003. From right: Wärtsilä’s representative Mr Rodrigo Cienfuegos(Regional Director), with the president of Petroecuador, Petrobras, OXY and Repsol,the chairman of the exhibition and ex-minister of E&M, and the presidents of OCP,AGIP and AEC-Encana.

propeller have a combined output of25.2 MW. The ferries are due fordelivery from Mitsubishi’s Nagasaki yardin mid-2004. They will employ a newpropulsion concept known as CRP podpropulsion with a CombinedDiesel-Electric and Diesel-Mechanical(CODED) machinery plant.

Wärtsilä and Volvo Penta toco-operate in the service andsales of marine enginesWärtsilä will start servicing and sellinglarge Volvo Penta engines forcommercial shipping applications,initially in selected markets and laterglobally.

Volvo Penta has broadened its enginerange to cover commercial vessels andthe company now offers engines forincreasingly large vessels for both mainengine and auxiliary engine duties. Thelargest engines have outputs of 2000horsepower (1470 kW). Wärtsilä marineengines are considerably larger thanthese, the largest having outputs of108,920 horsepower (80,080 kW). Therespective product ranges of the twocompanies complement each other verywell.

Volvo Penta’s engine deliveries toWärtsilä will mainly comprise engines inthe output range of 300 to 2000horsepower (220 to 1470 kW). Theco-operation covers only Volvo Pentaengines designed for the commercialmarine market.

...in houseWPH re-accredited of itsQuality Management SystemIn April 2003 Wärtsilä Philippines, Inc.received re-accreditation of its QualityManagement System in accordancewith the ISO 9001:2000 standard. Thescope of certification also includes theSubic Regional Training Center.

A date to rememberin Wärtsilä’s historyThis year marks 200 years since thebirth of Nils Ludvig Arppe, the founderof Wärtsilä. N. L. Arppe’s 200thanniversary ceremony held on Sunday24 August in Kitee, a municipality ineastern Finland, included an address byWärtsilä’s President and CEO OleJohansson. �


AppointmentsWärtsilä Corporation, Power PlantsMr Robson Campos: Regional Director, sales region SouthAmerica East as of 25 June 2003. He is based in Rio de Janeiro.Mr Campos has previously worked as Business DevelopmentManager at Wärtsilä Brasil Ltda.Mr Olli-Pekka Vanhanen: Vice President, Finance andBusiness Control in the Power Plants division as of 1 October2003. Olli-Pekka Vanhanen joined Wärtsilä in April 2000 as VicePresident, Business Control in Wärtsilä Development & FinancialServices Oy, a position he continues to hold.

Wärtsilä Philippines, Inc.Mr Seppo Hautajoki: President, Wärtsilä Philippines as of 16September 2003, replacing Mr Lionel Rossignol who will return toWärtsilä France in Mantes. Mr Hautajoki also continues in his roleas Vice President, Service, Wärtsilä Philippines.

Wärtsilä Sweden ABMr Tord Johnsson: General Manager, Power Plants at WärtsiläSweden as of 1 September 2003. He succeeds Tom Nyman whowill concentrate on his duties as General Manager, Service Sales.

Correction: Please note that Mr Rodrigo Cienfuegos was mistakenly named‘Roberto’ in the previous issue of Energy News. Mr Cienfuegos is Regional Directorfor sales region South America West.

Who’s new

Tord JohnssonSeppo Hautajoki

Robson Campos Olli-Pekka Vanhanen

ARGENTINAWärtsilä Argentina S.A.Av. España 3091 - Chalet #1 (Tandanor)C1107AMK Buenos AiresTel: . . . . . . . . . . . . . . +54 11 4307 2009Fax:. . . . . . . . . . . . . . +54 11 4307 2212

AUSTRALIAWärtsilä Australia Pty Ltd.48 Huntingwood DriveHuntingwood, NSW 2148Tel: . . . . . . . . . . . . . . . +61 2 9672 8200Fax:. . . . . . . . . . . . . . . +61 2 9672 8585

Wärtsilä Australia Pty Ltd.109 Broadway , Bassendean WA 6054Tel: . . . . . . . . . . . . . . . +61 8 9377 3337Fax:. . . . . . . . . . . . . . . +61 8 9377 3338

AZERBAIJANWärtsilä Caspian LtdSalyan Shosse 32, Sabail District, BakuAzerbaijan RepublicTel: . . . . . . . . . . . . +994 12 972 357/8/9Fax:. . . . . . . . . . . . . . . +994 12 973 175

BANGLADESHWärtsilä Bangladesh Ltd.Iqbal Centre (14th Floor)42 Kemal Ataturk Avenue, Banani C/ADhaka - 1213Tel: . . +880 2 998 9272/0639/0086/8287Fax:. . . . . . . . . . . . . . . +880 2 988 3372

BRAZILWärtsilä Brazil Ltda.Rua São Luiz Gonzaga, 354- São Cristóvão - Rio de Janeiro20910-060Tel: . . . . . . . . . . . . . . +55 21 3878 8911Fax:. . . . . . . . . . . . . . +55 21 3878 8908

CANADAWärtsilä Canada Inc.164 Akerley Boulevard, Dartmouth(Halifax), Nova Scotia B3B 1Z5Tel: . . . . . . . . . . . . . . . +1 902 4681 264Fax:. . . . . . . . . . . . . . . +1 902 4681 265

Wärtsilä Canada Inc.1771 Savage RoadRichmond, BC V6V 1R1Tel: . . . . . . . . . . . . . . . +1 604 244 8115Fax:. . . . . . . . . . . . . . . +1 604 244 8117

CHILEWartsila Chile Ltda.Av. Presidente Eduardo Frei Montalva6001-71, Centroempresas El Cortijo,Conchalí, SantiagoTel: . . . . . . . . . . . . . . . . +56 2 685 0500Fax:. . . . . . . . . . . . . . . . +56 2 685 0600

Wärtsilä Chile Ltda.Autopista 5980, TalcahuanoTel: . . . . . . . . . . . . . . . . +56 41 421 561Fax:. . . . . . . . . . . . . . . . +56 41 420 229

CHINAWärtsilä China Ltd.Room 4201, Hopewell Centre183 Queen’s Road EastWanchai, Hong KongTel:. . . . . . . . . . . . . . . . +852 2528 6605Fax: . . . . . . . . . . . . . . . +852 2865 6672

Wärtsilä China Ltd.Unit A,14 Floor,World Plaza855 Pu Dong Nan Lu200120 Shanghai, P.R.ChinaTel: . . . . . . . . . . . . . . +86 21 5877 8800Fax:. . . . . . . . . . . . . . +86 21 5877 1629

Wärtsilä China Ltd.Room 2505, CITIC Building19 Jian Guo Men Wai Dajie,100004 Beijing, P.R. ChinaTel: . . . . . . . . . . . . . . +86 10 6593 1842Fax:. . . . . . . . . . . . . . +86 10 6593 1843

Wärtsilä China Ltd.Lian Hua Shan, GuaranteedProcessing Zone, 511440 Panyu,Guangdong P.R ChinaTel:. . . . . . . . . . . . . . +86 20 848 66 242Fax: . . . . . . . . . . . . . +86 20 848 66 240

Wärtsilä Taiwan Ltd.13F-4, No 186, Jian Yi Road, Chung HoCity, Taipei Hsieng, Taiwan R.O.C.Tel: . . . . . . . . . . . . . . +886 2 8227 1066Fax:. . . . . . . . . . . . . . +886 2 8227 1067

COLOMBIAWärtsilä Colombia S.A.Avenida 19 # 118-30 Oficina 508Edificio Centro de Negocios, BogotáTel: . . . . . . . . +57 1 620 3020/629 4031Fax:. . . . . . . . . . . . . . . . +57 1 620 5881

CYPRUSWärtsilä Cyprus Ltd. &Wärtsilä Mediterranean Ltd.Rebecca Court, 2nd Floor1 Promachon Eleftherias, AyiosAthanasios4103 LimassolTel: . . . . . . . . . . . . . . . . +357-5-322 620Fax: . . . . . . . . . . . . . . . +357-5-314 467

DENMARKWärtsilä Danmark A/SJens Munksvej 1, P.O.Box 67DK-9850 HirtshalsTel: . . . . . . . . . . . . . . . . +45 99 569 956Fax:. . . . . . . . . . . . . . . . +45 98 944 016Wärtsilä Danmark A/SAxeltrov 8, 1st FloorDK-1609 Copenhagen VTel: . . . . . . . . . . . . . . . . +45 33 454 133Fax:. . . . . . . . . . . . . . . . +45 33 454 130Wärtsilä Danmark A/SHækken 3, 6700 EsbjergTel: . . . . . . . . . . . . . . . . +45 76 135 000Fax:. . . . . . . . . . . . . . . . +45 75 133 575

DOMINICAN REPUBLICWärtsilä Dominicana C. por A.Autopista Guarte Km.13,Esq. Prol. 27 de Febrero,Urbanizacioni Almeda, Santo DomingoTel: . . . . . . . . . . . . . . . +1 809 564 7184Fax:. . . . . . . . . . . . . . . +1 809 372 7968

ECUADORWärtsilä Ecuador S.A.Calle Los Floripondios N57120y Leonardo Murialdo (esquina)Edificio Wärtsilä, QuitoTel:. . . . . . . . . . . . . . . . +5932 2811 215Fax: . . . . . . . . . . . . . . . +5932 3280 785

EGYPTWärtsilä Arab MediterraneanPower Ltd S.A.E.Apt. No 1, 12 Nahda Street, Maadi, CairoTel/Fax: . . . . . . . . . . . . . +20 2 3582 172

FINLANDWärtsilä CorporationWärtsilä Development &Financial Services OyJohn Stenbergin ranta 2, P.O.Box 19600531 HelsinkiTel: . . . . . . . . . . . . . . +358 10 709 0000Fax (Corporation) : . . . +358 10 709 5700Fax (WDFS): . . . . . . . +358 10 709 5710Fax (Power Plantsdivision management): +358 10 709 5720Wärtsilä Finland OyPower Plants, BiopowerArabianranta 600560 HelsinkiTel: . . . . . . . . . . . . . . +358 10 709 0000Fax:. . . . . . . . . . . . . . +358 10 709 5469Wärtsilä Finland OyWärtsilä Development &Financial Services OyWärtsilä Operations & Maintenance Ltd.Järvikatu 2-4, P.O.Box 24465101 VaasaTel: . . . . . . . . . . . . . . +358 10 709 0000Fax (Technology &Manufacturing): . . . . . . +358 6 317 1906Fax (WDFS): . . . . . . . +358 10 709 1942Fax (Operations): . . . . +358 10 709 1757Wärtsilä CorporationWärtsilä Finland OyTarhaajantie 2, P.O.Box 252, 65101VaasaTel. . . . . . . . . . . . . . . +358 10 709 0000Fax (Power Plants):. . . . +358 6 356 9133Fax (Power Plantsbusiness control): . . . . . +358 6 356 9144Fax (Service): . . . . . . . . +358 6 356 9155Fax (Marine): . . . . . . . . +358 6 356 7188Wärtsilä Finland OyStålarminkatu 45, P.O.Box 5020810 TurkuTel. . . . . . . . . . . . . +358 (0)10 709 0000Fax. . . . . . . . . . . . . +358 (0)10 709 3169

FRANCEWärtsilä France s.a.s.1, rue de la Fonderie, B.P. 1210F-68054 Mulhouse CedexTel: . . . . . . . . . . . . . +33 (0)3 89 666 868Fax: . . . . . . . . . . . . +33 (0)3 89 666 830

Wärtsilä France s.a.s.28, Boulevard Roger Salengro78200 Mantes-la-Ville, B.P.122478202 Mantes-la-Jolie CedexTel: . . . . . . . . . . . . +33 (0)1 34 78 88 00Fax: . . . . . . . . . . . . +33 (0)1 34 78 88 03

Wärtsilä France s.a.s.Enceinte portuaire - PORTE 4Site CIMM, 13344 Marseille Cedex 15Tel: . . . . . . . . . . . . +33 (0)4 91 03 99 20Fax: . . . . . . . . . . . . +33 (0)4 91 03 99 21

Wärtsilä France s.a.s.Etablissement du NordZ.I.A. Rue de Lorival, BP 411,F-59474 SeclinTel: . . . . . . . . . . . . . +33 (0)3 20 625 800Fax: . . . . . . . . . . . . +33 (0)3 20 327 147

GERMANYWärtsilä Deutschland GmbHSchlenzigstrasse 6, 21107 HamburgTel: . . . . . . . . . . . . . . +49 (0)40 75 190 0Fax: . . . . . . . . . . . +49 (0)40 75 190 190

GREECEWärtsilä Greece S.A.25, Akti Miaouli, 18535 PiraeusTel: . . . . . . . . . . . . . . . +30 10 413 5450Fax:. . . . . . . . . . . . . . . +30 10 411 7902

GUATEMALAWärtsilä Guatemala, S.AKm. 19.5, Carretera al Pacifico,Parque Empresarial Nacionales Unidas,Office No. 5, Guatemala, Guatemala C.A.Tel: . . . . . . . . . . . . . . . . +502 384 9600Fax: . . . . . . . . . . . . . . . . +502 384 9620

INDIAWärtsilä India Ltd.76, Free Press House, Nariman PointMumbai 400 021Tel: . . . . . . . . . . . . +91 (0)222 281 5601Fax: . . . . . . . . . . . . +91 (0)222 284 0427

Wärtsilä India Ltd.48, Neco Chambers, Sector 11CBD Belapur, Navi Mumbai 400 614Tel: . . . . +91 (0)222 757 5361, 757 5371Fax: . . . . . . . +91 (0)222 7575176/77/78

Wärtsilä India Ltd.24, Siri Fort Road, New Delhi - 110049Tel: . . . . . . . . . . +91 (0)112 625 1105/-8Fax: . . . . . . . . . . . . +91 (0)112 625 1109

Wärtsilä India Ltd.Lakshmi Chambers, 30, AnnasalaiSaidapet, Chennai 600015Tel: . . . . . . . . . . . . +91 (0)442 230 1080Fax: . . . . . . . . . . . . +91 (0)442 230 0477

Wärtsilä India Ltd.B Wing, 6th Floor, Rama Bhavan Complex,

Kodialbail, Mangalore 575 003Tel:. . . . . . . +91 (0)824 441 722/444 577Fax: . . . . . . . . . . . . . +91 (0)824 443 556

Wärtsilä India Ltd.Flat No 302, 3rd Floor, Oxford Plaza,9-1-129/1 Sarojini Devi Road,Secunderabad 500 003Tel: . . . . . . . . . . +91 (0)402 7715383/4/5Fax: . . . . . . . . . . . . +91 (0)402 7715377

Wärtsilä India Ltd.East Anglia House, 3 C, Camac StreetKolkata 700 016Tel:. . . . . . +91 (0)332 2172320/2269567Fax: . . . . . . . . . . . +91 (0)332 249 7535

Wärtsilä India Ltd.Paul Commercial Complex, 5th Floor,Ajni Square, Wardha RoadNagpur 440015Tel: . . . . . . +91 (0)7122 224291/224294Fax: . . . . . . . . . . . +91 (0)7122 224 226

Wärtsilä India Ltd.Opp Govt. Rest HouseMumbai Pune Road, Shilpata,410203 KhopoliTel: . . . . . . . . . . . . . +91 (0)21922 64389Fax: . . . . . . . . . . . . +91 (0)21922 63314

INDONESIAPT Wärtsilä IndonesiaCikarang Industrial EstateJl. Jababeka XVI, Kav. W-28Bekasi 17530Tel: . . . . . . . . . . . . . . . +62 21 893 7654Fax:. . . . . . . . . . . . . . . +62 21 893 7660

IRELANDWärtsilä Ireland Ltd.54, Broomhill DriveTallaght Industrial Estate, Dublin 24Tel:. . . . . . . . . . . . . . . . +353 1462 6700Fax: . . . . . . . . . . . . . . . +353 1462 6722

ITALYWärtsilä Italia S.p.A.Bagnoli della Rosandra 33434018 TriesteTel: . . . . . . . . . . . . . . +39 040 319 5000Fax:. . . . . . . . . . . . . . . +39 040 827 371

Wärtsilä Italia S.p.A.Via Nazario Sauro, 5, 20068 Canzo diPeschiera Borromeo (Milano)Tel: . . . . . . . . . . . . . . . +39 02 553 9061Fax:. . . . . . . . . . . . . . +39 02 553 90638

IVORY COASTWärtsilä ACO17, Rue Pierre et Marie CurieZone 4A, Abidjan 01Tel:. . . . . . . . . . . . . . . +225 21 24 31 59Fax: . . . . . . . . . . . . . . +225 21 35 15 06

JAPANWärtsilä Japan Co., Ltd.Kobe Yusen Bldg., 1-1-1, Kaigan-doriChuo-ku, Kobe 650-0024Tel: . . . . . . . . . . . . . . . +81 78 392 5333Fax:. . . . . . . . . . . . . . . +81 78 392 8688

Wärtsilä Japan Co., Ltd.Binary Kita-Aoyama Bldg, 8F, 3-6-19,Kita-Aoyama, Minato-ku, Tokyo 107-0061Tel: . . . . . . . . . . . . . . . +81 3 3486 4531Fax:. . . . . . . . . . . . . . . +81 3 3486 4153

KENYAWärtsilä Eastern Africa Ltd.House of Vanguard, Fuji PlazaChiromo Road, Westlands, NairobiTel: . . . . . . +254-20-444 7988, 444 7989Fax: . . . . . . . . . . . . . +254-20-444 6719

KOREAWärtsilä Korea Ltd.Pusan Marine Centre Bldg. 10th Fl.79-1, Chungang-dong, 4-ka, Chung-ku,Pusan, 600-715Tel: . . . . . . . . . . . . . . . +82 51 466 6955Fax:. . . . . . . . . . . . . . . +82 51 468 5546

Wärtsilä Korea Ltd.498-1, Kamman-dong, Nam-kuPusan, 608-070Tel: . . . . . . . . . . . . . . . +82 51 637 8443Fax:. . . . . . . . . . . . . . . +82 51 637 8444

MEXICOWärtsilä de Mexico S.A.Guillermo Gonzalez Camarena#1100 S PisoCol Centro Ciudad de Santa FeMexico D.F. 01210Tel: . . . . . . . . . . . . . . +52 55 5570 9200Fax:. . . . . . . . . . . . . . +52 55 5570 9201

THE NETHERLANDSWärtsilä Nederland BVHanzelaan 95, 8017 JE ZwolleP.O.Box 10608, 8000 GB ZwolleTel: . . . . . . . . . . . . . +31 (0)38 425 3253Fax: . . . . . . . . . . . . . +31 (0)38 425 3977

NORWAYWärtsilä Norway AS5420 RubbestadnesetTel:. . . . . . . . . . . . . . . . +47 53 42 25 00Fax: . . . . . . . . . . . . . . . +47 53 42 25 01

Wärtsilä Norway ASHestehagen 5 - HolterIndustriområde, 1440 DrøbakTel: . . . . . . . . . . . . . . . . +47 64 937 650Fax:. . . . . . . . . . . . . . . . +47 64 937 660

Wärtsilä Corporation Worldwide

PAKISTANWärtsilä Pakistan (Pvt) Ltd.16-kilometer, Raiwind RoadP.O.Box 10104, LahoreTel: . . . . . . . . . . . . . . +92 (0)42 5418846Fax: . . . . . . . . . . . . . +92 (0)42 5419833Wärtsilä Pakistan (Pvt) Ltd.2nd Floor, P.O.F. Liaison Offices252 Sarwar Shaheed RoadSaddar, KarachiTel: . . . . . . . . . . . . . +92 (0)21 568 5734Fax: . . . . . . . . . . . . . +92 (0)21 568 2797

PERUWärtsilä del Perú S.A.J. Arias Aragüez 210San Antonio - Miraflores, Lima 18Tel: . . . . . . . . . . . . . . . . +51 1 241 7030Fax: . . . . . . . . . . . . . . . + 51 1 444 6867

PHILIPPINESWärtsilä Philippines, Inc.No.6 Diode Street,Light Industry & Science Park ICabuyao, Laguna 4025Tel: . . . . . . . . . . . . . . +63 (49) 543 0382Fax: . . . . . . . . . . . . . . +63 (49) 543 0381

POLANDWärtsilä Polska Sp. z.o.o.Ul. Jakuba Kubickiego 1302-954 WarszawaTel: . . . . . . . . . . . . . . . +48 22 550 6172Fax:. . . . . . . . . . . . . . . +48 22 550 6173

PORTUGALWärtsilä Portugal, LdaZona Industrial Da Maia ISector X - Lote 362, No. 43,Apartado 1415, P 4470 Maia CodexTel: . . . . . . . . . . . . +351 (0)22 943 9720Fax: . . . . . . . . . . . . +351 (0)22 943 9729

PUERTO RICOWärtsilä Caribbean Inc.P.O. Box 7039, Carolina, PR 00986-7039Street address:Julio N Matos Industrial Park, Road 887,km 0.6 Street A, Lot No. 5,Carolina, PR 00987Tel: . . . . . . . . . . . . . . . +1 787 701 2288Fax:. . . . . . . . . . . . . . . +1 787 701 2271

RUSSIAWärtsilä CorporationRepresentative OfficeShvedsky Pereulok, 2191186 St.PetersburgTel: . . . . . . . . . . . . . . . +7 812 118 6331Fax:. . . . . . . . . . . . . . . +7 812 118 6329. . . . . . . . . . . . . . . . . . +7 812 118 6330Wärtsilä CorporationRepresentative OfficeSechenovsky Per. 6, Bldg 3119034 MoscowTel: . . . . . . . . . . . . . . . +7 095 937 7589Fax:. . . . . . . . . . . . . . . +7 095 937 7590Wärtsilä ServiceMiusskaya Square, 7, Office 119125811 MoscowTel: . . . . . . . . . . . . . . . +7 095 251 7819Fax:. . . . . . . . . . . . . . . +7 095 251 4364Wärtsilä Vladivostok LtdUl.Krygina, 57, Office 40-42690090 VladivostokTel: . . . . . . . . . . . . . . . +7 4232 510 710Fax:. . . . . . . . . . . . . . . +7 4232 510 711

SAUDI ARABIAWärtsilä Power Contracting CompanyLtd.Industrial City, Phase 4, P.O.Box 2132Jeddah 21451Tel: . . . . . . . . . . +966 2 637 6470, 6884Fax:. . . . . . . . . . . . . . . +966 2 637 6482

SENEGALWärtsilä West Africa S.A.B.P.21.861 Dakar-Ponty, Km 4,5,Bd du Centenaire de la Commune deDakarTel:. . . . . . . . . . . . . . . . +221 8 32 10 26Fax: . . . . . . . . . . . . . . . +221 8 32 10 25

SINGAPOREWärtsilä Singapore Pte Ltd.14, Benoi Crescent, Singapore 629977Tel: . . . . . . . . . . . . . . . . +65 6265 9122Fax: . . . . . . . +65 6265 0910, 6264 3186

SOUTH AFRICAWärtsilä South Africa (Pty) Ltd.36 Neptune Street, Paarden EilandP.O.Box 356, Cape Town 7442Tel: . . . . . . . . . . . . . . . +27 21 511 1230Fax:. . . . . . . . . . . . . . . +27 21 511 1412

SPAINWärtsilä Ibérica S.A.Poligono Industrial Landabaso, s/n,Apartado 137, 48370 Bermeo (Vizcaya)Tel:. . . . . . . . . . . . . . . +34 94 617 01 00Fax: . . . . . . . . . . . . . . +34 94 617 01 12

SWEDENWärtsilä Sweden ABÅkerssjövägen, P.O.Box 920,461 29 TrollhättanTel:. . . . . . . . . . . . . . . +46 520 42 26 00Fax: . . . . . . . . . . . . . . +46 520 42 27 79

SWITZERLANDWärtsilä Switzerland Ltd.Zürcherstrasse 12, P.O. Box 414CH-8401 WinterthurTel: . . . . . . . . . . . . . +41 (0)52 262 4922Fax: . . . . . . . . . . . . . +41 (0)52 262 0720

TURKEYWärtsilä Enpa Dis Ticaret A.S.Süleyman Seba Cad. No. 48Besiktas Plaza, A Blok Zemin Kat Besiktas34357 IstanbulTel: . . . . . . . . . . . . . . +90 212 327 1530Fax:. . . . . . . . . . . . . . +90 212 327 1535

Wartsila Enpa Dis Tic.A.S.Aydintepe Mah. Tersaneler MevkiiG50.Sok. Özek Is Merkezi D Blok No.5-6Tuzla IstanbulTel: . . . . . . . . . . . . . . +90 216 493 2921Fax:. . . . . . . . . . . . . . +90 216 493 2920

Wartsila Enpa Dis Tic.A.S.Ivedik Organize Sanayi, S.S. Eminel KüçükSanayi Sitesi Yap. Kop., Ostim 692 Sok.No: 17/19 AnkaraTel:. . . . . . . . . . . . +90 312 395 7248/50Fax:. . . . . . . . . . . . . . +90 312 395 7251

UNITED ARAB EMIRATESWärtsilä Gulf FZEP.O.Box 61494, Jebel Ali, DubaiTel: . . . . . . . . . . . . . . . +971 4 883 8979Fax:. . . . . . . . . . . . . . . +971 4 883 8704. . . . . . . . . . . . . . . . . . +971 4 883 4386

UNITED KINGDOMWärtsilä UK Ltd.Tubs Hill House, London Road,Sevenoaks, Kent TN13 1BLTel: . . . . . . . . . . . . +44 (0)1732 744 400Fax: . . . . . . . . . . . . +44 (0)1732 744 420

Wärtsilä UK Ltd.Girdleness Trading EstateWellington Road, Aberdeen AB11 8DGTel: . . . . . . . . . . . . . +44 (0)1224 871166Fax: . . . . . . . . . . . . +44 (0)1224 871188

Wärtsilä UK Ltd.30, Brunel Way, SegensworthFareham, Hampshire PO15 5SDTel: . . . . . . . . . . . . . +44 (0)1489 550050Fax: . . . . . . . . . . . . +44 (0)1489 550055

Wärtsilä UK Ltd.Units 30,31 Northfield Industrial EstateNorthfield Lane South, BrixhamSouth Devon TQ5 8UATel: . . . . . . . . . . . . +44 (0)1803 883 830Fax: . . . . . . . . . . . . +44 (0)1803 882 685

U.S.A.Wärtsilä North America, Inc.16630 Air Center BoulevardHouston, Texas 77032 – 5100Tel: . . . . . . . . . . . . . . . +1 281 233 6200Fax:. . . . . . . . . . . . . . . +1 281 233 6233

Wärtsilä North America, Inc.Wärtsilä Development & FinancialServices Inc.900 Bestgate Road, Suite 400Annapolis, MD 21401Tel: . . . . . . . . . . . . . . . +1 410 573 2100Fax:. . . . . . . . . . . . . . . +1 410 573 2200

Wärtsilä North America, Inc.2900 SW 42nd StreetFort Lauderdale/Hollywood, FL 33312Tel: . . . . . . . . . . . . . . . +1 954 327 4700Fax:. . . . . . . . . . . . . . . +1 954 327 4773

Wärtsilä North America, Inc.26264 Twelve Trees LanePoulsbo, WA 98370Tel: . . . . . . . . . . . . . . . +1 360 779 7030Fax: . . . . . . . . . . . . . . +1 360 779 7311

Wärtsilä North America, Inc.1313 MacArthur Avenue,Harvey, (New Orleans), LA 70058Tel: . . . . . . . . . . . . . . . +1 504 341 7201Fax:. . . . . . . . . . . . . . . +1 504 341 0426

Wärtsilä North America, Inc.1 Blue Hill Plaza, 3rd FloorBox 1544Pearl River, NY 10965Tel: . . . . . . . . . . . . . . . +1 914 623 1212Fax:. . . . . . . . . . . . . . . +1 914 623 3385

Wärtsilä North America, Inc.Harbor Cove Plaza,29000 South Western Ave.Suite 210Rancho Palos Verdes, CA 90275Tel: . . . . . . . . . . . . . . . +1 310 831 7424Fax:. . . . . . . . . . . . . . . +1 310 831 7426

VENEZUELAWärtsilä Venezuela C.A.Urb. La Belisa, Avenida Salom, con calleCadafe, Edificio Puerto Motores,Local N° 1, frente al C.C. Pto. Cabello,Puerto Cabello – Estado CaraboboTel: . . . . . . . . . . . . . . +58 242 364 8827Fax:. . . . . . . . . . . . . . +58 242 364 6022

VIETNAMWärtsilä Vietnam Co. Ltd.Central Plaza Office Building, 7th Floor17 Le Duan Street, Dist. 1Ho Chi Minh CityTel: . . . . . . . . . . . . . +848 8 244 534, 35Fax:. . . . . . . . . . . . . . . . +848 8 294 891

Representatives

ALBANIAEdmond shpk (ltd)Rr. Isuf Elezi vila 22Tirana, AlbaniaTel: . . . . . . . . . . . . . . . . +335 4 243227Fax: . . . . . . . . . . . . . . . . +355 4 244009

BULGARIAR.C.LimitedBjala Street 1, 1421 SofiaTel:. . . . . . . +359 (0)2 9712697/9632168Fax: . . . . . . +359 (0)2 9632601/9515063

CAMBODIAComin Khmere Co., Ltd.No. 48, Street 214, P.O. Box 28,Phnom Penh, Kingdom of CambodiaTel: +855 23 426 056 / 212 514 / 217 003Fax:. . . . . . . . . . . . . . . +855 23 426 622

CZECH REPUBLICProgress Power s.r.o.Myslbekova 362, 500 03 Hradec KraloveCzech RepublicTel: +420 49 5410472, +420 49 5410875Fax: . . . . . . . . . . . . . . +420 49 5410472

EGYPTAlarm Consulting & Contracting1st Building, Flat 507,El Alaam City, Agouza, GizaTel: . . . . . . . . . . . . . . . . +20 2 347 1873Fax:. . . . . . . . . . . . . . . . +20 2 303 6416

FRENCH POLYNESIAPoly-DieselP.O.Box 9037, Papeete, TahitiTel: . . . . . . . . . . . . . . . . . +689 505 270Fax: . . . . . . . . . . . . . . . . . +689 427 827

GABONSociété GabonaiseDe Mecaniques S.AP.O.Box 607, Port GentilTel . . . . . . . . . . . . . . . . . . +241 752 250Tlx:. . . . . . . . . . . . . . . . . . . . . 8231 sgm

GHANAInter-Afrique Holdings Ltd.Kingsway Building, 2nd Floor, Suite 20145 Kwame Nkrumah Avenue, ArcaTel: . . . . . . +233 (0)21 220 896, 246 284Fax: . . . . . . . . . . . . . +233 (0)21 221 005

GUAMPacific Power Resources, Inc.238 East Marine Drive, Suite 3Hagátña 96910, Guam, U.S.A.Tel: . . . . . . . . . . . . . . . +1 671 477 4030Fax:. . . . . . . . . . . . . . . +1 671 472 4505

HAITISociété Generale De Distribution S.A.(SOGED)P.O.Box 73, 4 Route de Mais GatePort-au-PrinceTel: . . . . . . . . . . . . . . . . +509 249 1666Fax: . . . . . . . . . . . . . . . . +509 249 1660

HUNGARYEnerg Kft.H-1124 Budapest, Kis János altabornagyu. 55. fszt.1.Tel: . . . . . . . . . . . . . . . +36 20 9675 464Fax:. . . . . . . . . . . . . . . . +36 1 329 0373

INDIABanaras House Engineering Ltd.LPG House, E-18, B-1 Extn. MohanCo-operative Industrial AreaMathura Road, New Delhi 110 044Tel: . . . . . . . . . . . . . +91 (0)11 695 5070Fax: . . . . . . . . . . . . . +91 (0)11 695 5079

IRANKalajoo CompanyApr. 302 Sayeh Bldg.No.1409 Vali Asr Ave.P.O.Box 19945-583, Tehran 19677Tel: . . . . . . . +98 21 204 5888, 204 3528Fax:. . . . . . . . . . . . . . . +98 21 204 4532

KUWAITAbdul Aziz Yousuf Al-Essa & Co. w.l.l.P.O.Box 3562 Safat, 13036 SafatTel: . . . . . . . . +965 483 2229, 483 3051Tlx: . . . . . . . . . . . . . . . . . 23576 sauid ktFax: . . . . . . . . . . . . . . . . +965 484 0829

MADAGASKARSociété Malgache d’EquipementsFrigorifiquesOuest Ankadimbahoaka, Route DigueP.O.Box 4395, AntanarivoTel: . . . . . . +261 263 09, 280 93, 308 60Tlx: . . . . . . . . . . . . . . . . . . . . . . . 22335

MOROCCOSociété Salva93 Bd de la Résistance, 21700CasablancaTel: . . . . . . . . . . . . . +212 (0)22 304 038Tlx: . . . . . . . . . . . . . . . 27012 SOSALVAFax: . . . . . . +212 (0)22 305 717, 306 675

PAKISTANAmeejee Valleejee & Sons (Ptv.) Ltd.Ameejee Chambers, Campbell St.P.O.Box 51, Karachi 74200Tel: . . . . . +92 (0)21 262 5492, 262 7945Tlx: . . . . . . . . . . . . . . . . 27361 avsns pkFax:. . . . . . +92 (0)21 262 7817/2621910

PORTUGALCoepro - Consultores E EngenheirosProjectistas, Ltda.Praca Prof. Santos Andrea, 2,3°EP-1500 LisboaTel: . . . . +351 (0)21 714 1120, 716 0491Fax: . . . . . . . . . . . . +351 (0)21 715 5638

ST. LUCIASure LineLa Toc Higway, P.O.Box 551, CastriesTel: . . . . . . . . . . . . . . . +1 758 452 3415Fax:. . . . . . . . . . . . . . . +1 758 452 3447

SURINAMERudisa InternationalGalileistraat 524, Mon PlaisirP.O.Box 1648, ParamariboTel:. . . . . . . . . . . . +597 453431/453772Fax: . . . . . . . . . . . . . . . . . +597 455312

THAILANDInternational Measuring InstrumentsCorp. Ltd.9/345 Moo 8 Phaholyotin Road,Anusawwaree BangkhenBangkok 10220Tel:. . . . . . . . +66 2552 5228, 2552 8262Fax: . . . . . . . . . . . . . . . . +66 2552 8403

Baseload power plantsWärtsilä offers both stationary and floating baseload powerplants with multifuel capability. High efficiency, low emissionsand proven long-term reliability have made Wärtsilä theleader in the demanding 1–300 MW market segment.

Wärtsilä’s 25–170 MW floating baseloadpower plants can be installed in the mostdemanding locations, where localconditions make it difficult to build astationary plant.

Peaking power plantsWärtsilä’s efficient Peaking Plants aredesigned to run parallel to the transmissiongrid when demand is at its highest. Thepower system is modularized in 3–15 MWunits, for plants with outputs up to 200 MW.

Wärtsilä peaking plants have aminimal environmental impact andlow variable operating costs,allowing for longer running hoursthan traditional peaking plants.

Standby power plantsWärtsilä standby power plant systemsare designed for demanding standbyapplications. The Wärtsilä Power

Module, designed for fast-track poweroutputs from 2 MW to 40 MW, marks thelatest development in modern distributedpower solutions.

Combined heat and power plantsThe 2–100 MW CHP power plants incorporateboth power generation and heat recovery, whichraises the total plant efficiency up to 90%. WärtsiläCHP plants offer low emissions and high efficiencyand can run on various natural gas and liquid fuel

qualities, while maintaining lowemissions and high efficiency.The ultimate goal is to controlenergy costs and to saveenergy.

Mechanical drivesWärtsilä Mechanical drives are based onproven Wärtsilä engines tuned to meet thespecial needs of gas compression andpumping applications. The engines can run onlight fuel oil, heavy fuel oil, crude oil or naturalgas. Dual-fuel solutions are also available.

The Wärtsilä pumping and compressionunits are suitable for well-head, pipelineand gas storage applications. The unitscomprise a complete train of engine,coupling and driven equipment mountedon a common base frame. All requiredauxiliaries are part of the delivery.

BiopowerThe BioEnergy or BioPower plants, in the3–25 MW power range, either producethermal energy for district heating or fordrying and other industrial processes, orthey can be built as combined heat and

power plants. Wärtsilä’s patentedrotating BioGrate combustiontechnology is especially suitable forwet biomass, such as wood residues,wood chips, bark and sawdust.

Power plant servicesOur power plant services add value to ourcustomers’ businesses at every stage in thelifecycle of their installation. With Wärtsilä asyour service partner, you receive manymeasurable benefits: Improved availabilityand performance, productivity gains, cost

benefits. Above all, peace of mind, inthat your installation is being servicedby the most experienced partner – themanufacturer.

Wärtsilä product programme

issue 17 energy news – issue 17 3 dear reader, the world has faced serious blackouts in several...

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