Wärtsilä signs cooperation agreement to develop large scale flexible gas power plant projects in the USA

Wärtsilä Corporation
  • Press release
30 June 2017 at 5:00 PM E. Europe Standard Time

The technology group Wärtsilä and Southern Power, a subsidiary of Southern Company, have today signed a Memorandum of Understanding (MoU) to develop two flexible gas power plant projects, which could be as large as 450 MW each, in the USA. Southern Power will lead this project development effort and Wärtsilä will provide technical and commercial support. Wärtsilä and Southern Power would build the power plants jointly and Wärtsilä’s scope would be extended equipment supply.

Southern Power, a leading U.S. wholesale energy provider with over 12,600 MW of generating capacity, grows its wholesale business through construction of generating assets substantially covered by long-term contracts.  “Renewables are an important part of a diverse energy mix, and flexible generation complements the rapid growth of intermittent renewables,” said Southern Power President and CEO Buzz Miller. “This agreement is an early stage in a lengthy process, but we believe this technology could be an excellent solution for our customers, and for many others in the marketplace that we hope to serve through this relationship.”

“In the USA we are seeing a rapidly increasing demand for flexible generation and Wärtsilä provides the most efficient quick start solution for customers to balance their renewable portfolio and hedge their costs.  We are excited to be teaming up with Southern Power, a leader in the development, installation and operation of electric power facilities with a proven track record of operational reliability and safety," said Javier Cavada, President at Wärtsilä Energy Solutions.

“The intention of Southern Power to invest in developing large projects with our flexible gas technology is a major milestone for our systematic market development in the USA. We will provide our full support to Southern Power for the project development, and hope that this co-operation will lead to more similar projects in the future,” said Jussi Heikkinen, Market Development Director at Wärtsilä North America Inc.

After contracts signed with the cities of Denton and Tallahassee over the past 12 months, Wärtsilä continues to grow its footprint in the USA. The current installed base, including projects under construction, is more than 3,000 MW. Globally, Wärtsilä’s installed power plant base is 63 GW in 176 countries.

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Caption: The agreement was signed by Mr Javier Cavada, President of Wärtsilä Energy Solutions and Mr Bob Schaffeld, Senior Vice President and Chief Commercial Officer, Southern Power.

For further information please contact:

Mikael Backman
Regional Director, US & Canada
Wärtsilä Energy Solutions
Tel: +1 281-224-2920
mikael.backman@wartsila.com

Kristian Mäkelä
Director, Sales & Marketing
Wärtsilä Energy Solutions
Tel: +358 40 1483565
kristian.makela@wartsila.com


Wärtsilä Energy Solutions in brief

Wärtsilä Energy Solutions is a leading global system integrator offering a broad range of environmentally sound solutions. The company supplies ultra-flexible internal combustion engine based power plants and utility-scale solar PV power plants, as well as LNG terminals and distribution systems. The flexible and efficient Wärtsilä solutions provide customers with superior value and enable a transition to a more sustainable and modern energy system. As of 2017, Wärtsilä has 63 GW of installed power plant capacity in 176 countries around the world. www.smartpowergeneration.com

Wärtsilä in brief
Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2016, Wärtsilä's net sales totalled EUR 4.8 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com

Cautionary Notes Regarding Forward-Looking Statements:

Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the expected development of power plant projects. Southern Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Power's Annual Report on Form 10-K  for the year ended December 31, 2016, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the ability to control costs and avoid cost overruns during the development and construction of generating facilities, to construct facilities in accordance with the requirements of permits and licenses, and to satisfy any operational and environmental performance standards, including the requirements of tax credits and other incentives; and potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Power. Southern Power expressly disclaims any obligation to update any forward-looking information.

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