Notice to Proceed Issued to Wartsila by Pacific Gas and Electric Company for Their 163 Mwe Gas Power Plant In California

HELSINKI, April 2 /PRNewswire/ -- Wartsila North America, Inc., a subsidiary of Wartsila Corporation, a leading global provider of power plants for flexible power generation, was in March released to begin detailed engineering and manufacturing on a 163 MWe gas-fired power plant ("Plant") for Pacific Gas and Electric Company (PG&E). This begins preparation for the start of plant construction in the latter part of 2008.

It was announced in April 2006 that Wartsila North America, Inc. was selected to deliver the power plant to PG&E. The project has been subject to the approval of the California Public Utility Commission and environmental permits issued by the California Energy Commission. All approvals have now been received. The value of the project is more than EUR 100 million.

The Plant will be located in Humboldt County near Eureka in northern California and is expected to enter commercial operation by mid-2010. PG&E selected Wartsila's technology in order to repower their existing Humboldt Bay plant. When compared to the existing 50 year old PG&E plant, the new facility will be 33% more efficient with 85% fewer ozone forming compounds and a 34% reduction of greenhouse gas emissions production.

The new facility will consist of 10 Wartsila 18V50DF lean-burn dual-fuel engines delivered on an engineering, procurement and construction (EPC) basis. The engines will be fuelled by natural gas, and will be capable of using ultra low sulphur diesel as a back-up during times of natural gas curtailment. The Plant is capable of producing enough electricity to serve approximately 125,000 homes.

Wartsila's Flexible Power Plants - A Superior Alternative

Wartsila's flexible power plants are able to reach full plant output in less than ten minutes, provide 25 percent power in two minutes and respond rapidly to varying grid conditions. They also offer the highest simple cycle efficiency available in the industry, constant performance over varying ambient conditions, low lifecycle costs and small unit sizes.

Wartsila's natural gas fueled technology has the capability to operate efficiently at low loads, which could not only lead to potentially lower electricity costs, but also increases the number of megawatts of "spinning reserve" available to the customer. This increases the value of the power plant. Additionally, Wartsila's flexible power plants are able to supply all commercially traded ancillary services, including black start capabilities.

Wartsila flexible power also allows its customers to meet today's increasingly stringent air quality requirements. Furthermore, by employing a closed loop cooling system, Wartsila'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.

Wartsila's Dual-Fuel Technology

The Wartsila 50DF lean-burn dual-fuel engine is designed to incorporate both low emissions and high fuel efficiency, making it a competitive alternative to gas turbines. It has become a popular engine for power plant installations in countries all over the world. It is available with up to 18 cylinders giving up to 16.64 MWe in continuous base-load operation.

In the event of loss of gas pressure, the engines switch over to the back-up fuel (i.e. diesel). The engines are fully capable of automatically changing from gas to back-up fuel instantly if the gas supply is interrupted while continuing to deliver full power. When the gas supply is restored, it is then possible to quickly switch back to gas mode.

About Wartsila Corporation:

Wartsila enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wartsila focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wartsila sets out to be the most valued business partner of all its customers. This is achieved by the dedication of more than 16,000 professionals manning 150 Wartsila locations in 70 countries around the world. Wartsila is listed on The Nordic Exchange in Helsinki, Finland.

    
    http://www.wartsila.com

    For further information, please contact:

    Frank Donnelly
    President
    Wartsila North America, Inc.
    Tel: +1-281-233-6201
    e-mail: frank.donnelly@wartsila.com

    Sabrina Garg
    Senior Marketing Specialist
    Wartsila North America, Inc.
    Direct tel: +1-281-233-6209
    Direct fax: +1-281-233-6233
    e-mail: sabrina.garg@wartsila.com

    Maria Nystrand
    Public Relations Manager, Power Plants
    Wartsila Corporation
    Direct tel: +358-10-709-1456
    Direct fax: +358-10-709-1425
    e-mail: maria.nystrand@wartsila.com