Wärtsilä signs power plant supply agreement w...

Wärtsilä Corporation, Trade Press release, 20 September 2010

Wärtsilä, a leading global supplier of decentralised power plant solutions, has
signed an agreement with KVK Energy Group to supply power generating equipment
and engineering for a gas power plant to be built in Rajahmundry, Andhra
Pradesh, India.

The scope of supply includes 8 Wärtsilä W20V34SG gas engine generators and
auxiliaries, as well as the engineering, erection and commissioning of the power
plant. Construction has already begun as part of a previous order in March 2010
when 3 engines were contracted. With the extension of this new contract for a
further 8 engines, the power plant will produce a combined output of over 100
MW. These 8 engine generator sets and related equipment will be delivered in the
second half of 2011, and the entire plant will be fully operational by the end
of the year. However, 2 of the previously ordered sets will start producing
electricity at the end of October 2010 already.

The Rajahmundry power plant will initially provide baseload power to the
national grid, but in the mid to long term it will be used for meeting the
grid's peak load requirements.

Mr Ole Johansson, President & CEO, Wärtsilä Corporation, said, "This order is an
exciting opportunity for Wärtsilä in terms of gas based power generation in
India. The power plant is a perfect example of the operational flexibility that
is characteristic of our power generating technology. Wärtsilä gas power plants
can be used for both baseload operation and grid stability or peaking
applications, and as the customer's need changes, so can the operational profile
of our plants."

Wärtsilä's flexible gas power plants combine high power density with quick
starts, durability, excellent load pickup performance and easy maintenance. They
have the highest simple cycle efficiency available in the industry. They offer
constant performance over varying ambient conditions, low lifecycle costs and
rapid response to varying grid conditions. They also comply to even the
strictest local emissions legislation.

Mr K. Vijay Kumar, Chairman and Managing Director of KVK Energy Group, added:
"We are happy to partner with Wärtsilä, a global leader in decentralised power
plant solutions. Our requirements are for a scalable power plant, outstanding
project management, and overall operating economics, and Wärtsilä meets all
these needs." The KVK Energy Group is a holding company that has developed a
portfolio of power plant projects of various sizes, using a variety of fuels and
technologies, across the country.


Wärtsilä in India - a preferred partner

In total, Wärtsilä has delivered over 250 power plants to India with a total
output of around 3500 MW. At more than 60 plants in India (including steam &
wind turbine plants), representing a total output of over 1000 MW, Wärtsilä
takes care of the operation and maintenance on behalf of its customers.

Wärtsilä has delivered engines to vessels belonging to the Indian Navy, Coast
Guard, Port Trusts, merchant shipping, floating cranes and offshore rigs. In
Khopoli, Wärtsilä manufactures gear boxes and auxiliaries/pipe modules, and
reconditions and upgrades engines, ship propellers and components. The Wärtsilä
Land and Sea Academy located in the same facility, provides training and
competence management services to power plant owners and ship owners.

For further information, please contact:

Wärtsilä India Limited
Lydia D'Sa
DGM, Corporate Communications
Tel: [phone] extn: 282
Mobile: [phone]
[e-mail]

Maria Nystrand
Publicity Manager
Wärtsilä Power Plants
Direct tel: [phone]
e-mail:[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


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