Wärtsilä converts Ecuadorian crude oil power ...

Wärtsilä Corporation, Press release, 3 June 2010 at 9:00 am (EET)

Wärtsilä, a leading provider of flexible decentralised power generation
solutions, has been awarded the contract to convert the Eden Yuturi - Block 15
power plant in Ecuador from crude oil to associated gas fuelled operation. The
aim of the conversion is to mitigate the plant's environmental impact and to
take advantage of the available associated gas for power production. Wärtsilä is
also co-developing the project under the United Nations' Clean Development
Mechanism (CDM) to enable the project to access carbon financing. Furthermore,
Wärtsilä has been awarded a two-year Operations Advisory and Maintenance
contract.

The order has been issued by PETROAMAZONAS EP, a state-owned oil company that
strongly endorses the Ecuadorian government's focus on environmental
sustainability. The plant, powered by four Wärtsilä engines and built in 2002,
generates power for the Eden Yuturi and nearby oil fields.

The conversion of the power plant from crude oil-fuelled to gas-fuelled
operation will enable the utilisation of associated gases, a by-product of crude
oil production. Thanks to Wärtsilä's multi-fuel technology, this associated gas
can be converted to electricity instead of being continuously flared into the
atmosphere. This technology offers a unique degree of fuel flexibility,
permitting the engines to run on any combination of liquid fuel and associated
gas. This is essential for oil and gas companies operating in environments where
the associated gas volumes and composition are constantly changing. This
flexibility in the utilization of associated gas serves to maximize power
production while reducing greenhouse gas emissions.

During the extraction process of crude oil, associated gas will come to the
surface as well, and is usually vented or flared, instead of being used. The
World Bank-led Global Gas Flaring Reduction Partnership estimates that globally
around 150 billion cubic metres of gas are flared or vented every year, causing
some 400 million tons of carbon dioxide in annual emissions. That is equivalent
to 30 per cent of the European Union's gas consumption.

Seeking registration under CDM

The avoidance of associated gas flaring is an established project category under
the United Nations' CDM process, and Wärtsilä and PETROAMAZONAS EP are jointly
developing and seeking to register the project under the CDM. Under this
arrangement, Wärtsilä, in addition to the technical conversion, is advising
PETROAMAZONAS EP on the CER development and sales process to enable the
utilization of income from Certified Emission Reductions (CERs) for financing
the project. Upon acceptance by the UN, the conversion will be the first
associated gas project in South America to be successfully registered under the
CDM. Wärtsilä and PETROAMAZONAS EP have enjoyed a good relationship for a number
of years, and these projects will serve to strengthen it even further.

"PETROAMAZONAS EP is an oil producer with high environmental standards, and by
implementing Wärtsilä's advanced technology to reduce the oil field's greenhouse
gas emissions, is able to further its commitment to sustainability. A key
feature of our co-operation is our ability to support the customer in developing
the project under the Clean Development Mechanism", says Tomas Hakala, Vice
President, Services, Americas.

For further information, please contact:
Mr Tomas Hakala
Vice President, Services (Americas)
Wärtsilä Corporation
Tel: [phone]
[e-mail] <mailto:[e-mail]>


Mr Markus Pietikäinen
VicePresident
Group Treasury and Financial Services
Wärtsilä Corporation
Tel: +358 10 709 5630
[e-mail] <mailto:[e-mail]>

Media contact:
Ms Tuula Franck
Senior Manager, External Communications
Wärtsilä Corporation
Tel: +358 400 267555
[e-mail] <mailto:[e-mail]>

Wärtsilä in brief

Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximises the environmental and economic performance of the
vessels and power plants of its customers. In 2009, Wärtsilä's net sales
totalled EUR 5.3 billion with more than 18,000 employees. The company has
operations in 160 locations in 70 countries around the world. Wärtsilä is listed
on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com <

http://www.wartsila.com/>







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