Wärtsilä to supply 40 MW fast track power plant

Wärtsilä Corporation, Press release, 4 January 2017 at 10:00 am EET

Wärtsilä will supply a 40 MW Smart Power Generation plant to Mendoza, Argentina, for Methax S.A., a special purpose company owned by Grupo Galileo . The value of the order is approximately EUR 25 million. The turn-key engineering, procurement and construction (EPC) order includes Wärtsilä 34SG engines running on natural gas. The order was booked in the fourth quarter of 2016.

Argentina is suffering from energy shortages and the government is attracting private investments in order to increase capacity and efficiency. Wärtsilä has taken a strong position in enabling the transition towards an affordable and sustainable energy infrastructure in Argentina.

Methax was awarded the Mendoza power plant project, with a 10 year fixed fee and gas sale contract, in the tender issued by CAMMESA, the national grid system operator, on behalf of the Ministry of Energy in Argentina. The Ministry aims to further develop and strengthen the national grid in order to supply Argentina's population and industry with reliable power. Wärtsilä was selected as the power plant supplier because of its efficiency, EPC capabilities and life cycle support.

Methax will generate electricity for 15 000 households with the Wärtsilä Smart Power Generation power plant. Other companies from Grupo Galileo will provide the natural gas for the plant by purchasing it from producers who are flaring the gas at present in the Malargüe region. The gas will be liquefied at the well-head by mobile Cryobox® LNG Production Stations and then transported by road via Virtual Pipeline® from Malargüe region to Anchoris, where it will regasified at site.

By liquefying right at the well-head, transporting and regasifying the LNG, Grupo Galileo is introducing its proprietary Gas 3.0® technologies in a massive scale, which will allow Argentina's upstream producers to meet demand through an extensive system of natural gas distribution without the use of conventional pipelines.

"In addition to providing electricity to the households in Malargüe region, our LNG Virtual Pipeline between the well and the power plant makes this project economically sound and allows us to utilise our Gas 3.0 solutions in mobile LNG technology to address the impact of the flaring," says Mr Osvaldo Del Campo, President and CEO at Grupo Galileo .

"This power plant will increase the electrification ratio in the region and will add reliability to the existing system. We are able to deliver the power plant quickly, which was very important for the customer, in addition to our superior efficiency, EPC capability and life cycle support that we provide," says Luiz Felipe Carvalho, Business Development manager at Wärtsilä.

This is the seventh project awarded to Wärtsilä in Argentina during 2016. These projects have a significant impact on employment and industrial development in Argentina. Several hundred jobs are created and technology know-how is transferred to the growing power generation sector in Argentina.

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For more information, please contact:

Luiz Felipe Carvalho Business Development Manager Wärtsilä Energy Solutions Tel: +5521988680984 luiz.carvalho@wartsila.com

Jukka-Pekka Niemi General Manager, Marketing Wärtsilä Energy Solutions Tel: +358 50 465 2805 jukka-pekka.niemi@wartsila.com

Wärtsilä Energy Solutions in brief Wärtsilä Energy Solutions is a leading global supplier of ultra-flexible power plants of up to 600 MW operating on various gaseous and liquid fuels. Our portfolio includes unique solutions for baseload, peaking, reserve and load-following power generation, as well as for balancing intermittent renewable energy. Wärtsilä Energy Solutions also provides utility-scale solar PV power plants, as well as LNG terminals and distribution systems. As of 2016, Wärtsilä has 60 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 2015, Wärtsilä's net sales totalled EUR 5 billion with approximately 18,800 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

Galileo in brief Galileo is a global reference in modular technologies for both CNG and LNG production and transportation. Its products portfolio includes the widest range of compressors and pumps for vehicles and vessels; pipeline boosters and wellhead compressors; and the Virtual Pipeline(TM) system for gas shipment by road, thus reaching remote communities and industries without pipeline network connection. Its Distributed Liquefaction Solutions enable to condition every type of gas, to liquefy it right at the source and supply it reducing emissions and fuel production and distribution costs. The company provides products and ongoing assistance to customers in 70 countries in Latin America, North America, Europe, Africa and Asia. www.galileoar.com