Wärtsilä to deliver 203 MWe gas power plant near San Antonio, Texas to South Texas Electric Cooperative

Wärtsilä Corporation, Trade press release, 14 January 2008 at 16:00 UTC+2

Houston – Wärtsilä Corporation, a leading global provider of power solutions, has been awarded an equipment supply contract by South Texas Electric Cooperative (STEC), a non-profit generation and transmission cooperative headquartered in Nursery, Texas. The contract for the 202.5 MWe gas-fired power plant is valued at over $100 million USD. Currently, STEC serves eight distribution cooperatives, which provide services to over 170,000 members in 65 South Texas counties.

“The analysis of the various options proved Wärtsilä a clear winner environmentally, economically, and in the project’s ability to meet rapidly changing market conditions,” Michael Packard, General Manager of STEC, said.

“We are thrilled to be working with both STEC and Burns & McDonnell on Wärtsilä’s first large installation in the state of Texas,” says Frank Donnelly, President of Wärtsilä North America.  “This flexible power plant will efficiently provide the generation needed for the region’s growth, as well as the grid stability required for the increasing influx of wind power”.

The power plant, to be called the “Pearsall Power Plant”, will be located about fifty miles Southwest of San Antonio in Pearsall, Texas on an existing brownfield site. It will be equipped with twenty-four Wärtsilä 20V34SG engines, including all related mechanical and electrical auxiliaries, SCR’s, installation and commissioning support and training. Burns & McDonnell, Inc. of Kansas City will assist with engineering, permitting, and construction management activities.

The plant will be connected to the ERCOT grid and supply power and Ancillary Services to STEC’s eight cooperative members, helping to serve their 750 MW peak load. The plant is anticipated to run about 4000 hours per year. The first 75 MW of the Pearsall Power Plant is expected to enter commercial operation in late 2009, with the remaining 128 MW beginning commercial operation by the end of 2010.

Wärtsilä´s Flexible Power Plants – A Superior Alternative

Wärtsilä’s flexible power plants features include the ability to reach full plant output in eight minutes, provide 25% power in two minutes, the highest simple cycle efficiency available in the industry, constant performance over varying ambient conditions, low lifecycle costs, small unit sizes and rapid response to varying grid conditions.

Wärtsilä’s natural gas fueled technology has the capability to operate efficiently at low loads. The Pearsall Power Plant will be able to run at as little as 8 MW with a competitive heat rate. This feature not only translates into lower electricity costs for STEC member cooperatives, but it also 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 black start capabilities.

Wärtsilä flexible power 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. This helps to address the growing concern over water supply in many areas of the US.

About the South Texas Electric Cooperative:

South Texas Electric Cooperative was formed in 1944 to provide wholesale electric power to member cooperatives. Presently the South Texas Electric Cooperative serves eight distribution cooperatives; Karnes, Wharton County, Victoria, Jackson, San Patricio, Nueces, Magic Valley and Medina electric cooperatives. These cooperatives provide service to over 170,000 members in 65 South Texas counties roughly 1/5 the area of Texas.
The cooperative’s headquarters are located in Nursery Texas, at the Sam Rayburn generating plant. One hundred and sixty employees are based at the Sam Rayburn plant while another twenty-two are based at the Pearsall generation facility.
STEC’s power is generated utilizing a variety of fuels, including lignite, natural gas, diesel and hydro. These resources include a 50% share in the San Miguel Electric Cooperative lignite generation plant located in Christine Texas; the Sam Rayburn facility which is a combination of resources including dual-fuel, combined-cycle generation; and the Pearsall facility, a gas-fired unit located in Pearsall Texas. The remaining resource is the output of the Amistad-Falcon hydro project.

For further information about STEC, please contact:

Dotty DiSanto
System Engineer
South Texas Electric Cooperative, Inc.
Direct: 361-575-6491
Fax: 361-485-6129
Email: dottyd@stec.org

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 15,000 professionals manning 150 Wärtsilä locations in 70 countries around the world. Wärtsilä is listed on The Nordic Exchange in Helsinki, Finland.

For further information, please contact:

Sabrina Garg
Senior 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