Arctic power plant contracts for Wärtsilä

Wärtsilä Corporation, Trade press release 2 January 2006 at 14:00 UTC+2

Wärtsilä Corporation has been awarded two significant orders for power plants in the Russian Arctic. The two contracts are worth close to EUR 30 millions in total.

The first contract, awarded in October, is for a 32 MW power plant to generate electricity for the Varandey oil terminal in northwest Russia on the Pechora Sea, which is part of the Barents Sea. The oil terminal is used to ship crude oil from the Timan-Pechora oil fields to world markets. Wärtsilä is to supply four 18-cylinder Wärtsilä 32 generating sets which will use the same crude oil as fuel.

This is a major contract from the Russian oil industry for Finland and the power plant design complies with strict safety and environmental protection requirements. The Varandey oil terminal and its power plant are being constructed by the Russian contractor Globalstroy-Engineering. The power plant will be fully operational in 2007.

The second contract, received in November, is for a 20 MW cogeneration plant producing electricity and heat for Bema Gold Corporation’s Kupol Project, a high-grade gold and silver mine located in the Chukotka Autonomous Okrug, of Siberia. The plant will be equipped with four 12-cylinder Wärtsilä 32 diesel generating sets.

The Kupol Project is located in the continental climatic region of the subarctic climate belt where the average annual air temperature is close to -13°C. Average winter temperatures are -33.°C. The harsh conditions require the use of low-temperature resistant materials and systems specially designed for the arctic environment. The power plant will be fuelled with arctic-grade diesel oil which does not solidify at the prevailing low temperatures. Access is also difficult. The plant equipment will be shipped from Finland in summer 2006 to the East Siberian Sea port of Pevek and from there the equipment will be transported to Kupol using ice roads during the winter of 2006/2007. The plant is due to be fully operational in mid 2008.

These two power plants are designed and delivered based on proven Finnish arctic technology and on the long experience and traditions of Wärtsilä in the Arctic. Wärtsilä power plants are operating in all arctic countries and these two plants are the latest examples in the long line of arctic deliveries.

Notes to the editor:

Wärtsilä is a leading provider of power plants, operation and lifetime care services in decentralized power generation.

The company provides power plants for baseload, intermediate, peaking, standby and combined heat and power applications as well as solutions for oil pumping. The product range comprises gas- and oil-fired power plants with outputs from 1 MW to 300 MW, biopower plants with outputs from 1 to 5 MWe and biothermal plants for 3–17 MWth

Wärtsilä is The Ship Power Supplier for builders, owners and operators of vessels and offshore installations. Our own global service network takes complete care of customers’ ship machinery at every lifecycle stage.

For further information, please contact:

Maria Nystrand
Public Relations Manager, Power Plants
Wärtsilä Finland Oy
Direct tel: +358 10 709 1456
Direct fax: +358 10 709 1425