Wärtsilä and Versa Power agree to jointly develop fuel cell technology in commercial energy-producing applications

Wärtsilä Corporation, Trade press release 3 June 2011 at 14:00 UTC+2

Solid oxide fuel cell modules to be integrated in stand-alone energy-generation and marine products

Wärtsilä, the leading provider of power solutions to both the marine and energy markets, and Versa Power Systems (VPS), a leading developer of environmentally friendly, high-power solid oxide fuel cells (SOFC), today announced a co-operative agreement to develop and integrate Versa Power’s SOFC technology into Wärtsilä products.

A key target of the agreement is to develop commercial Wärtsilä fuel cell products that generate power and heat for various applications in the distributed energy and marine markets. The agreement allows Wärtsilä to integrate VPS fuel cell stack modules, especially for larger power range products. For VPS, the agreement provides a dedicated partner with the ability to commercialize fuel cell products in large markets around the globe.

“VPS is leading the development of large SOFC stacks, and the company’s capabilities support Wärtsilä’s strategy of developing large SOFC systems for the distributed power and marine markets. The agreement with VPS strengthens Wärtsilä’s ability to provide its customers with clean and highly efficient power solutions. Demand is developing rapidly and the commercial potential for such products is very promising,” says Erkko Fontell, Director, Fuel Cells, Wärtsilä.

“Solid oxide fuel cells have low emissions, yet they produce relatively large amounts of electricity for their size,” says Robert Stokes, CEO of Versa Power Systems. “Combining the expertise of our two companies will help meet the growing commercial demand for compact, high-efficiency products.”

An essential element in Wärtsilä’s strategy

Advancing and commercializing fuel cell products is part of Wärtsilä’s long-term development strategy. Offering customers environmentally sound and sustainable energy production technologies is an essential part of the company’s strategy. This co-operation with VPS supports the commercialization of fuel cell products by strengthening the development and supply partnerships.

Wärtsilä has already launched successful pilot projects using fuel cell technology supplied by Topsoe Fuel Cell A/S headquartered in Denmark, and this co-operation will continue as planned. In 2008, Wärtsilä delivered a unique fuel cell unit that operates on landfill gas and produces electricity and heat for the city of Vaasa in Finland. In the summer of 2010, a WFC20 fuel cell unit was installed onboard the Undine, a car carrier owned by Sweden’s Wallenius Lines, for tests associated with the METHAPU project. Additionally, Wärtsilä has developed 50 kW WFC50 power units for internal validation.

Fuel cells are electro-chemical devices that combine a fuel source gas with oxygen to produce electricity, heat, and water. The absence of combustion processes significantly reduces harmful emissions of nitrogen and sulphur oxides (NOx and SOx) and particulate emissions are essentially zero. As electricity is generated directly and involves no intermediate mechanical or thermal processes, fuel cells can also be more efficient than conventional combustion-based technologies.

Fuel cells are considered to be one of the most exciting energy technologies for the future. Power solutions based on fuel cell technology are expected to offer significant benefits in power generation applications as well as in the shipping industry, where international emission regulations are becoming increasingly stringent.

For further information, please contact:

Erkko Fontell
Director, Fuel Cells
Tel: +358- 407544389

Tuula Franck
Senior Manager, Media and Stakeholder Relations
Wärtsilä Corporation
Tel: 358-400 267555

Mark Richards
Investor and Partner Relations
Versa Power Systems
Tel: +1 303-226-0766

Jack Jackson
Media Relations
Versa Power Systems
Tel: +1 781-898-9585 x-715

Wärtsilä in brief

Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2010, Wärtsilä’s net sales totalled EUR 4.6 billion with more than 17,500 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.

VPS in brief

Versa Power Systems is a premier developer of environmentally friendly solid oxide fuel cells (SOFC), a clean-tech source of power to generate electricity in an array of applications. SOFC systems operate at very high efficiency with virtually no emissions, making them valuable in conserving natural resources and mitigating energy production’s impact on the ecosystem. Versa Power’s successes in scaling up SOFC technology have been funded under the U.S. Department of Energy’s Solid State Energy Conversion Alliance (SECA) program and through financial support of its corporate investors. The company’s technology is integrated in projects by partners ranging from government agencies (the U.S. Departments of Energy and Defense) and private sector aerospace and energy concerns to organizations focused on energy (EPRI and GTI). Headquartered in Littleton, Colo., the firm also maintains development facilities in Calgary, Alberta.