Wärtsilä to deliver engines and equipment for a 115.5 MWe gas power plant in northern California to Tierra Energy

Wärtsilä Corporation, Trade press release 6 February 2007 at 16:00 UTC+2

Fourth major U.S. Wärtsilä gas power plant order in past 9 months

Wärtsilä Corporation, a leading global provider of power plants, has been awarded an equipment supply contract by a subsidiary of Tierra Energy, an Austin, Texas-based independent power producer. The contract, valued at more than $50 million USD, is for the supply of engines and equipment for Tierra Energy’s 115.5 MWe gas-fired power plant to be built in Northern California. The project is subject to certification by the California Energy Commission.

The power plant, called the “Eastshore Energy Center,” will be located in Hayward, California and equipped with 14 Wärtsilä 20V34SG engines. The Eastshore Energy Center will supply power and ancillary services to Pacific Gas & Electric Company (PG&E) pursuant to a 20-year power purchase agreement executed between PG&E and Tierra Energy’s subsidiary as a result of PG&E’s 2004 solicitation for long-term power. The plant is expected to enter commercial operation in May 2009.

“We are honored to have the opportunity to work with Tierra Energy on the Eastshore Energy Center,” Frank Donnelly, Vice President, Wärtsilä Power Plants in North America, said. “Wärtsilä looks forward to helping the State of California reach its long-term energy goals through this project, the second awarded contract for a Wärtsilä power plant as a result of PG&E’s recent request for proposal”. 

“Tierra Energy selected Wärtsilä technology to maximize operational flexibility and efficiency of the Eastshore Energy Center,” David Marks, President of Tierra Energy, said. “We are excited to bring the benefits of this technology to California.”

Wärtsilä’s flexible power plants – a competitive alternative to gas turbines

The Eastshore Energy Center is one of four large U.S. orders for Wärtsilä in the past nine months. In April 2006, Wärtsilä was selected to supply a gas power plant in Humboldt Bay, California for PG&E. In September, Wärtsilä was awarded a contract by Cogentrix Energy, Inc for Plains End II, an extension of an existing Wärtsilä installation near Denver, Colorado. The Tierra Energy order is the second in the United States awarded to Wärtsilä in the past two weeks. The first order, which will be announced jointly with the customer in the coming weeks, is for a 75 MW plant in the US. 

Benefits of Wärtsilä flexible power plants include the ability to reach full plant output in less than 10 minutes, a very high simple cycle efficiency, constant performance over varying ambient conditions and rapid response to varying grid conditions. Wärtsilä’s natural gas-fueled technology has the capability to operate efficiently at low loads. This feature increases the number of megawatts of “spinning reserve” available to the customer, thereby increasing the value of the plant. Additionally, Wärtsilä’s flexible power plants are able to supply all commercially traded ancillary services, including full grid black start capabilities. 

Wärtsilä technology also allows its customers to meet today’s increasingly stringent air quality requirements. Furthermore, by employing a closed loop cooling system, Wärtsilä’s engines do not consume process water or require significant wastewater treatment or disposal, which helps to address the growing concern over water supply in many areas of the U.S.

About Tierra Energy:

Tierra Energy is a rapidly growing energy company based in Austin, Texas, that is building a diversified portfolio of wind power and natural gas-fired power generation projects. Tierra Energy employs a strategy of improving operational efficiency, reducing costs and increasing the overall value of power generation assets. Tierra Energy has current projects in California, Texas, Idaho and Wyoming and other locations throughout the U.S. More information about Tierra Energy can be found at www.tierraenergy.com.

For further information about Tierra Energy or the Eastshore Energy Center, contact:
Katherine Goff – Elizabeth Christian & Associates Public Relations, (512) 472-9599 or
David Marks – Tierra Energy, (512) 480-9119

About Wärtsilä Corporation:

Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of more than 14,000 professionals manning 130 Wärtsilä locations in close to 70 countries around the world.

For further information, please contact:

Sabrina Garg
Marketing Specialist
Wärtsilä North America
Direct: 281-233-6209
Fax: 281-233-6233
Email: sabrina.garg@wartsila.com

Maria Nystrand
Public Relations Manager
Marketing Communications
Wärtsilä Finland Oy 
Direct tel: +358 10 709 1456
Fax: + 358 10 709 1425
Email: maria.nystrand@wartsila.com