Wärtsilä delivers complete fast-track power plant package

Source: press release, 7 December 2018

Wärtsilä 50SG gas-fuelled engine
Wärtsilä 50SG gas-fuelled engine (illustration: Wärtsilä)

A 130 MW power plant, delivered on an Engineering, Procurement and Construction (EPC) basis by the technology group Wärtsilä, has commenced full operations. Wärtsilä also operates and maintains the facility under a three-year operation and maintenance (O&M) agreement. The natural gas fuelled plant was ordered in October 2017 by Pemcorp, a Mexico-based independent power producer, on behalf of the owners, Texas-based Arroyo Energy Investors, specialists in power generation projects. The plant operates on seven Wärtsilä 50SG gas-fuelled engines, each with an output of 18.7 MW.

The facility is located close to the city of Monterrey, Mexico. It will provide the electricity supply for a nearby major Asian automobile factory under a long-term power purchase agreement (PPA). Full operations commenced in September 2018, just 11 months after the signing of the original order with Wärtsilä.

The O&M agreement between Wärtsilä and Pemcorp, which was signed in September, includes a 15-year Guaranteed Asset Performance Agreement. Additionally, Wärtsilä is providing a Recovery Guarantee for the generator sets to ensure a rapid recovery process in the case of an unforeseen event causing an interruption to the power generation.

“Because of our PPA obligations, it was essential to have extremely fast response, both in time-to-market and in operations in order to provide high-quality power to our customer. Wärtsilä succeeded in supplying and constructing the plant in just 11 months, which was an impressive feat. Furthermore, the efficiency, reliability, and flexibility of the Wärtsilä engines, backed by the operations, maintenance, and performance agreements, provide the long-term predictability and reliability required by international capital markets investors. Given this experience, Arroyo will look to deploy Wärtsilä technology elsewhere in the region,” comments Matthew Ginzberg, Principal, Arroyo Energy Investors.

“The high reliability offered by our multi-unit power plant solution, combined with high simple-cycle efficiency, were the key factors in our being awarded this contract. The value proposition that we are able to provide represents a complete package. It combines our equipment, procurement, and construction (EPC) capabilities with the backing of O&M service, to give a winning format,” says Sampo Suvisaari, Regional Director, Latin America North and the Caribbean, Wärtsilä Energy Solutions.