Cogeneration in Europe Issue 10 In this issue

The decade of cogeneration in Europe Wärtsilä NSD Energy News is published four times a year for business friends and employees Countries throughout Europe are currently exploring the advantages offered by of Wärtsilä NSD. cogeneration technology as the EU gears up to promote its more widespread use. . 4 Editorial Board: Stefan Fant, Jussi Heikkinen, Clas-Eirik Strand, Anci Sandås Editor: Anci Sandås English Editing: Andrew Gardiner Layout: Bock’s Office Please address correspondence to: Wärtsilä NSD, Anci Sandås P.O.Box 252, 65101 Vaasa, Finland e-mail: [email protected] ISSN 1456-3274 Information in this publication is subject to change without notice. © Wärtsilä NSD Corporation. Printed in June 2000. All rights reserved.

Modigen Ltd – trading electricity for Wärtsilä NSD

From saving Metra Corporation’s energy costs Modigen Ltd, a Wärtsilä NSD subsidiary, now offers electricity trading services to industrial companies and hotels...... 10

Energia-Tietola – Pure Energy for paper industry town

Energia-Tietola is a new Pure Energy cogeneration plant recently supplied to the electricity and district heating utility of Valkeakoski, one of Finland’s main pulp and paper industry centres. A key advantage is independence from outside electricity suppliers...... 12

Meeting Turkey’s power needs

Turkey needs some 3000 MW of new power generation annually for the next ten years to meet burgeoning demand. Innovative new ideas to help meet immediate needs include the “autoproducer” and “mobile power plant” concepts...... 14

Also in this issue

CHP for the BSc’s! ...... 16 Reciprocating compressors in natural gas 96 MW Power Master to El Salvador . . 29 underground storages in Germany . . . 24 Improved performance of Appointments ...... 29 the Wärtsilä 28SG...... 18 Owners split Cummins Wärtsilä Wärtsilä NSD worldwide ...... 30 operations ...... 27 Energy Partner proves its worth Product Programme ...... 32 in Denmark ...... 20 Cogen takes off at Detroit airport. . . . . 28

Top quality in Colombia...... 22 Diesel plant orders highlight Indian success ...... 28

2 - Wärtsilä NSD Dear Reader,

The first International Cogeneration Conference on 1-2 February in Washington DC was a very positive experience. Organized by International Cogeneration Alliance ICA it attracted over 200 delegates from more than 20 countries. The voice of the cogeneration community was loud and clear – the future of power and heat generation lies in cogeneration. Many OECD countries have set a target of doubling the share of cogeneration in electricity production from about 10 % to 20 % by 2010. This means that about 200 GW of new cogeneration capacity should be built by then and annual demand for new cogeneration plants will be 20 GWe. Hence, more than 10 billion dollars will be invested in cogeneration facilities every year. These aggressive policies are the result of the carbon emission targets set in the Kyoto protocols. The OECD countries have promised to reduce greenhouse gas emissions by 8–12 %. About half of the reduction could be achieved by doubling the share of cogeneration in electricity production. To make a fast start towards this goal, several countries have taken various initiatives to promote cogeneration. Development started in the USA with the PURPA legislation in 1978, which gives cogenerators the right to sell power at a fair rate to the grid. The Scandinavian countries were the first

to introduce the CO2 taxes at the beginning of 1990. This will now be followed by Germany and the UK, which will introduce new ecotax systems or CCL levies on traditional and less effective means of generation. The new taxes will make cogeneration the preferred and also the most competitive form of generation. This issue of Energy News presents some of the benefits and experience of cogeneration from the user’s point of view. It also shows the benefits of localized power production in the new liberalized electricity markets, where transmission tariffs make local plants the most economical option. So please, join the cogeneration community. It represents the future of power and heat generation for the whole world.

Stefan Fant Group Vice President Power Plants

Energy News - 3 Decentralized energy in focus The decade of cogeneration in Europe

Cogeneration is already an established concept in the hospitals, universities, department stores, greenhouse Nordic countries and, increasingly, in other parts of complexes and industrial facilities in countries from Europe. The EU as a whole is now examining the Belgium to Spain. concept in detail with countries across the region passing new legislation that will radically change the The benefits in brief structure of local power and heat markets. Cogeneration Cogeneration is by no means the solution to all power offers undisputed advantages. But it remains to be seen needs. So what makes the method so popular? The whether all EU member states grasp them fully. reason is that the technology, according to COGEN Cogeneration, also called combined heat and power Europe, results in ‘win-win’ solutions to energy (CHP), is based on the simultaneous production and problems facing today’s industrial societies, and use of both electricity and heat. The concept, according especially those with access to natural gas. to COGEN Europe, the European Association for Conventional generation of electricity in large central promotion of cogeneration, is the most efficient way to power stations is normally only 30-40 % efficient deliver heating, cooling and electricity. Countries across (Figure 1). These electricity-only stations release large Europe have enthusiastically adopted the concept. amounts of energy as waste heat, normally via large Finland, Denmark and the Netherlands, for example, cooling towers or cooling with sea or river water. They today employ cogeneration extensively to provide are also typically located far from where the electricity electricity and district heat to local communities and is consumed, which therefore requires expensive industry, but the range of possible applications is transmission costs. More recent combined cycle limited only by the imagination. Examples include generation can improve the efficiency of such plants to

Conventional system 35 % electricity or more

Conventional Fuel 100 power station

Up to 65 % losses

CHP system

Industry

Up to 90 % electricity Commerce and heat Fuel 100 CHP system

Domestic heating/ cooling

10 % losses Fig. 1 Why cogeneration. Source: COGEN Europe

4 - Wärtsilä NSD application. Provided this is done, cogeneration offers the following benefits: • Increased efficiency of energy conversion and energy efficiency at the point of use • Lower emissions to the environment, in particular of CO2, the main greenhouse gas • Large cost savings, providing additional competitiveness for industrial and commercial users, and offering affordable heat for domestic users • An opportunity to move towards more decentralized forms of electricity generation, where the plant is designed to meet the needs of local consumers, providing high efficiency, reducing transmission losses and increasing flexibility in system use • Improved local and general security of supply. Local generation, through cogeneration, can reduce the risk that consumers are left without supplies of electricity and/or heating. In addition, the reduced fuel need which cogeneration provides reduces dependency on imports, a 55 %, but this excludes losses for the transmission of key challenge for Europe’s energy future. electricity, which can be as great as 20 % of the delivered efficiency. The EU takes note By reusing the heat produced in electricity Calculated on a European scale, cogeneration still generation, the cogeneration plant can reach an accounts for only a fraction of installed capacity, efficiency of 90 % or more. Cogeneration, therefore, roughly 9 % according to COGEN Europe. A major offers energy savings ranging between 15-40 % when reason, of course, is the structure of the power market compared with the supply of electricity and heat from in large markets like Germany and France, where conventional power stations and boilers. centralized nuclear and coal-fired power plants are the The fundamental principle underlying cogeneration is norm. that, in order to maximize its many benefits, systems The benefits of cogeneration have not gone should be based according to the heat demand of the unnoticed by the EU Commission, however. The

Energy News - 5 Decentralized energy in focus

Investment opportunities Current use of cogeneration ...... 9 % Installed capacity ...... 65-70,000 MWe Current level of investment in cogeneration ...... 2-2.5 billion Euros/year EU target for 2010 ...... 18 % of all EU electricity to come from cogeneration If target reached, the installed capacity of cogeneration will be at least ...... 130,000 MWe Additional capacity is approx...... 60-65,000 MWe Investment opportunity to reach the target ...... 50-60 billion Euros Equivalent to...... approx. 5 billion Euros/year or ...... at least twice current activity

In addition Reinvestment in existing plant will be ...... approx. 30 % of existing stock 20-25,000 MWe over 10 years Investment opportunity of ...... approx. 1.5 billion Euros/year Further investment opportunities in Eastern and Central Europe conservatively estimated to be . . 1.5 + billion Euros/year THE OVERALL INVESTMENT OPPORTUNITY IS ...... 80-90 BILLION EUROS OR ...... 3-4 TIMES CURRENT ACTIVITY

Fig. 2 Investment opportunities offered by cogeneration in Europe. Source: COGEN Europe

Commission has identified cogeneration as the top This raises the question of obstacles to the free priority measure to reduce CO2 emissions in the EU and adoption of cogeneration that certain countries appear is committed to an 8 % cut in greenhouse gas emissions willing to use to safeguard their monopolistic power to meet the binding targets set by the Kyoto Protocol. industries. One example is discrimination against local Cogeneration has been identified as the biggest single operators by erecting regulatory barriers. France, for measure to reduce greenhouse gas emissions in the EU, instance, requires all cogenerator operators to apply the with a potential of 150 million tonnes of avoided CO2. same employment conditions on workers as applies to The EU Commission published a Strategy for EdF. This is unfair as the conditions apply to a principal Combined Heat and Power in May 1998, a landmark nuclear operator and not on-site generator. document in which it confirmed the importance of More serious is the potential lack of fair access by cogeneration in the future energy market of the cogeneration operators to the electricity system. There European Union. In this document the Commission are now calls for the EU to pass a directive establishing stated its intention to double the current level of fair and transparent rules and pricing for connection to cogeneration in Europe (9 %) to 18 % by 2010. This is electricity systems, top-up and back-up prices, and not a legislative commitment; rather, a guide to export prices that reflect real costs. European policymakers and member states. If Another barrier is the use of Article 18.2 of the Gas implemented, the increase would raise the installed Directive to apply a minimum-size ‘threshold’ on capacity of cogeneration from today’s 65-70,000 MWe to cogeneration projects. This, in effect, would prevent 130,000 MWe, which translates into annual investments smaller but more efficient cogeneration installations totalling some 5 billion euros/year (Fig. 2). from accessing the competitively priced gas which will automatically be available to all big but less efficient From strategy to action combined cycle power stations. Both Spain and France The next step is the EU’s Action Plan, which is currently have indicated that they might use the threshold. being devised to co-ordinate EC activity to achieve the Proponents of cogeneration point out, however, that increase in cogeneration throughout the EU. If adopted, small-scale cogeneration will not disturb the balance of it would greatly accelerate the use of cogeneration the electricity market. If anything, the market is more throughout Europe although it is up to individual likely to be distorted by uncontrolled growth in countries how far and how fast they wish to proceed. electricity-only production based on CCGT plants which are not designed to meet local heat and power needs.

6 - Wärtsilä NSD As mentioned, the Nordic countries and particularly heat-only alternatives. The QI therefore offers scope for Finland have made perhaps the greatest progress a major improvement over conventional approaches towards widespread adoption of cogeneration, largely based simply on overall efficiency. The proposed for reasons of climate and infrastructure. Looking at methodology is designed both to reward existing and Europe as a whole, however, it could be instructive to future ‘good quality’ CHP schemes, and to provide an see how and why cogeneration is being applied in incentive for improving scheme performance. other widely differing European environments. We use the UK and Portugal as two examples. Portugal – cogeneration has legal status The concept of cogeneration was adopted in Portugal at The UK – a fertile market for cogeneration the end of the 1980s when Heavy Fuel Oil (HFO) The UK energy market has undergone fundamental reciprocating engines were introduced to the market. change over the past decade. Gas was privatized in High electricity prices encouraged numerous industrial 1986 and electricity in 1989, which opened up the investments in independent power production. With market to progressively increasing competition during most industries needing heat (mostly steam) in some the 1990s. Electricity prices fell by 20 % and gas by form as well, the cogeneration principle was an obvious 40 % between 1990-98. This provided a fertile solution. environment for cogeneration, which was further Because Portugal has some HFO refinery capacity of boosted by the government’s policy to "promote CHP its own and in the 1980s there was no natural gas wherever economic and to work to ensure there are no available, the logical fuel for the cogeneration business barriers to wider uptake". was HFO. There are currently about 70 HFO engines The original CHP target of 4000 MWe was running in cogeneration applications in met and a target of 5000 MWe is Portugal, amounting to between 8 and expected to be reached in 2000/1 10 % of the country’s annual on the way towards a target of electrical consumption. at least 10,000 MWe by Wärtsilä’s share of that 2010. The use of capacity is about 50 %, or cogeneration in the UK 167 MW. is predominately In 1992, the industrial since Portuguese community (district) government made a heating has been strategic decision to exploited to only a diversify its primary very small degree. energy sources An important towards natural gas. development was A multi-national gas the introduction of a pipeline project was stricter consents started and in spring policy which provided 1997 the first users exception for ‘good began consuming natural quality CHP’. No consents gas. Gas flows from are needed, for example, in Algeria, through Spain to the the case of CHP power stations Lisbon area where a below 10 MW in size. The criteria north-south main trunk line for ‘good quality CHP’ include the distributes the gas throughout the stipulation that efficiency, averaged over a year, country. should be significantly higher than that achievable with With the availability of natural gas, the the same fuel source in a power-only unit. demand for gas-fuelled engines has risen sharply. In the This concept is further developed by Quality Index first year, nearly 20 gas engines were sold for industrial (QI) methodology, which is built on the rationale that cogeneration applications. Nowadays the government electricity supplied is more valuable than heat supplied. and the gas industry is promoting gas as the main It compared CHP to separate electricity-only and choice of fuel for cogeneration plants. HFO projects are

Energy News - 7 Decentralized energy in focus becoming less common for environmental reasons and 2. The second fundamental principle of the cogen law uncertainty of future emissions legislation. defines the maximum power that can be sold to the grid:

The cogeneration Law Eer = (4.5 x ((E+T)/(E+0.5 x T)) - 4.5) x E Initially, there was no clear legal framework for installing private power stations; permits and power where: sales agreements were very much Eer = electricity that can be sold to the dependent on the attitudes of the grid (kWh) authorities. This situation resulted E = electricity produced by in long delays and problems cogeneration station annually when planning investments, (kWh) and ultimately legislation T = thermal energy was passed in which the consumed by the conditions for customer produced by cogeneration were the cogeneration defined. The cogen station annually law was in force (kWh) during the 1990s with some updates during This second the decade. condition The following emphasizes the condition defines the importance of a high cogenerator (Update of amount of heat Decret-Law No: 186/95 recovery, i.e. high total dt 27.06.1005): efficiency. The more heat 1. The first main principle of you can recover, the more the law is to define who (what power you can sell to the kind of power plant set-up) is grid. Consequently, even with a considered a “cogenerator”: smaller level of electrical consumption on-site, you can still install E+0.5xT>0.45 x C high electrical capacity. The effect of this clause can be calculated as follows where: (data are simplified to outputs, not to annual energies, E = electricity produced by cogeneration for a typical 6.5 MWe unit):

station annually (kWh) Heat recovery Electrical production Allowed electricity T = thermal energy consumed by the “Export” to grid 500 kWt 6500 kWe 1080 kWe customer produced by the cogeneration station 1500 kWt 6500 kWe 3020 kWe annually (kWh) 2500 kWt 6500 kWe 4720 kWe C = fuel consumed by the cogeneration 3899 kWt 6500 kWe 6500 kWe station annually (kWh) If the above equation is “true” then the case can be Other aspects of the legislation, together with the above handled as a cogeneration station. It should be noted conditions, limit the practical plant sizes to between 4 that the conditions are related to the annual energy to 7 MWe. In some rare cases with exceptionally high produced and consumed and not to the maximum heat consumption in their industrial processes, the capacity values (kW) of the station. Since Portugal’s installed electrical capacity has been above 10 MWe. climate is quite warm, traditional space heating With liberalization of energy legislation in Europe, applications are rare, so the cogeneration condition the Portuguese cogen law also needed amending since must usually be met with steam production. In practice it was originally written to function in parallel with a this means that a typical 6.5 MWe station must be able fully monopolistic electrical production and distribution to recover an average 0.5 MW of heat as steam from system. A new law was drafted between 1998-99 and exhaust gases (and consume it in an industrial activity). was introduced at the beginning of 2000.

8 - Wärtsilä NSD The new law (Decret-Law No: 186/95) makes four A number of other new aspects to the law not major changes to the old law and some of the major mentioned here naturally also need to be studied and differences are mentioned here: understood when evaluating new projects. Existing plants are governed under the old law. They can 1. In the old law the electricity selling prices to the change to the new one by expressing their wish to do public grid were guaranteed by the government for the so during a period of 24 months calculating from the future in accordance with a certain formula. This is no date when the new law was passed. longer the case. Now the selling price is defined using a complex calculation giving priority to environmental Looking to the future issues. In practice this means that the chosen The EU will need to issue directives and apply rules to technology must be “low-emission technology” and the ensure fair play for all in the rapidly liberalizing degree of cogeneration must be high. A total efficiency electricity and gas markets. Nonetheless, cogeneration of about 75-80 % results in a level of electricity selling has come to stay and its widespread increase can only prices that makes projects feasible (the new law sets a be delayed, not prevented. There is no doubt that limit of a minimum total efficiency of 55 % in order to investment in cogeneration plants across Europe, be qualified as a cogenerator). Electrical selling tariffs including central and eastern Europe, will soar in the are defined separately for cases with electrical outputs next decade or two, though the rate of activity will of less than 10 MWe and above 10 MWe. course vary by country. Technologically, the next major 2. The old law permitted excess development in the cogeneration power to be supplied only to the market will be public grid. Now it is micro-cogeneration systems recognized that the (below 15 kWe). These will cogenerator has the right be based on new prime to sell power also to movers: very small gas third parties either via engines, Stirling the public grid or engines and fuel through their own cells. Their target direct lines. markets will include individual houses, 3. The old law was small groups of quite unclear on the houses, small hotels question of and retail managing the establishments. electrical The potential for interconnection to the this technology is vast. grid. The new law In the UK alone, the guarantees a larger domestic gas boiler market transparency of proceedings is 12 million euros. If 25 % of in the bureaucracy and more this is suitable for equal treatment of the players in micro-cogeneration, the result could question. be 10,000 MWe of new installed cogeneration, or one-quarter of the UK’s electricity 4. One of the major hindrances to allowing demand. n cogeneration full rein for development under the old law was the in-built protectionism of limiting the Authors: installed power to5%oftheshort circuit power at the Andrew Gardiner, Impress Helsinki Ltd. connection point. In practice this limited project sizes to Kari Punnonen, Area Sales Manager, Wärtsilä NSD Finland Oy 4-6 MWe. The new law now allows connection of systems at the connection point up to8%oftheshort Source: The information in this article is largely based on material supplied by COGEN Europe. circuit power.

Energy News - 9 Decentralized energy in focus Modigen Ltd – trading electricity for Wärtsilä NSD

Wärtsilä NSD started electricity drop to about half in the summer trading in Finland through its and remain constant in the winter. subsidiary Modigen Ltd in 1997. This was because the prices are The original aim was to achieve hydro-based in the summer and savings in the electricity bills of the coal-based in the winter. The parent company Metra second finding was that the prices Corporation’s factories and offices. would generally fall and the best This became possible when Finland result would be achieved by making opened up the electricity market to only six-month contracts for competition, first for 500 kWe sites summer and winter separately. in October 1995 and then for all Trading started for summer consumers at the beginning of 1997. electricity in 1997. Modigen A crucial decision was taken in prepared a call for bids for the 1996 to adopt a point tariff system largest sites where earlier contracts in electricity transmission, where had expired. In the new contracts distance has no effect on the summer prices had fallen to transportation costs. This made it about EUR 17/MWh, or about 40 %. possible to buy electricity from any The average yearly electricity price supplier in the country. The only had fallen to EUR 25/MWh, or 24 % exception is on-site suppliers, who lower than earlier. do not need to pay for transmission charges since they do not transmit Trading strategy anything. Today, about three years from the start of liberalization, Modigen has Competitive bids for begun to offer this service to other largest sites companies in the metal and Metra Corporation has about ten mechanical engineering industry electricity consumption sites in and also the hotel sector. The Finland and some one hundred sites trading volume is now about three abroad. The natural starting point, times higher than consumption by therefore, was the largest sites in the Metra’s own facilities. Combining liberalized Finnish market. A market the engineering and hotel sectors study was made on these sites in has helped to smooth the total 1996. The average purchasing prices consumption curves so that the were about EUR 33/MWh for the utilization time of the maximum electricity component and about load corresponds to about 4500 h/a. EUR 13/MWh for transmission This is then a very good package, excluding VAT, giving a total price which all power suppliers want to of EUR 46/MWh. serve. The company asked for Electricity prices have stabilized at preliminary bids for summer and a very low level and the average winter electricity separately. It was price on the Nord Pool electricity found that electricity prices would exchange has been about EUR

10 - Wärtsilä NSD €/MWh 25 Aver. 1998 1999 2000 20

15

10

5

0 123 4 5 67891011 12 Aver. Fig. 1 Nord pool system prices.

14/MWh for two years in a row (see These prices can be compared to price would then be about EUR Figure 1). the variable costs of a coal-fired 20-23/MWh, which is only about In this new situation the strategy condensing plant, which are also 50 % of the original price before has been changed from short-term about EUR 16/MWh. Thus prices liberalization started. electricity contracts to two- or cannot be expected to fall much These prices also indicate that three-year contracts. A detailed lower and EUR 16/MWh is a fair construction of large-scale power analysis indicates that prices could price for making contracts for the plants, which feed to the power not fall very much more, and there next two to three years. pools, has essentially halted in is even the possibility of prices The consumer should then pay Scandinavia, at least for the time rising. EUR 13/MWh above this for being. The generating costs of a There are several reasons for this. electricity transmission. The total new coal, gas or nuclear plant are Consumption is rising at an annual price of future electricity will then about EUR 25-30/MWh, which is rate of 2-3 %, while supply remains be about EUR 30/MWh at the site too high compared with the pool constant or is decreasing as the for the next two to three years, prices. Barsebäck nuclear units in Sweden which is about 35 % lower than The only plant commissioned in are decommissioned. The second prices before liberalization began. Finland last year was the 11 MWe reason is higher prices in Germany, Valkeakoski Pure Energy gas CHP which tend to encourage Danish Future strategies plant with two Wärtsilä 5.5 MWe and Norwegian exporters to sell Prices are not expected to remain so gas engines for a municipal utility their electricity to continental low in the future. The best strategy customer (pages 12-13). The only Europe. will then be to combine electricity plants at the planning stage are a trading with on-site power municipal CHP plant in Tampere Future prices in Scandinavia production. This can be done in and some industrial on-site The prices of long-term contracts places where gas is available and generation plants. The electricity closely follow the forward prices on consumption is high enough to market has already changed the Nord Pool electricity exchange. make an on-site plant economical, fundamentally in Scandinavia. Other The prices in the next three years i.e. about 2-10 MWe. countries will follow as the are as follows (EUR/MWh): Power can be generated for EUR liberalization process spreads Summer 2000 ...... 11.0 25-30/MWh using an on-site around the world. n Winter 2 2000...... 16.1 gas-fired cogeneration plant. The Winter 1 2001...... 17.1 Year 2001...... 15.9 best strategy is to generate power Asko Vuorinen Year 2002...... 16.7 during the winter and purchase Managing Director Year 2003...... 17.6 power during the summer at about Modigen Ltd EUR 11/MWh. The average annual

Energy News - 11 Decentralized energy solutions Energia-Tietola – Pure Energy

Valkeakoski, about 150 km north of Deregulation has opened up the the major factors why Valkeakosken Helsinki, is one of Finland’s main energy market in Finland in a Energia decided to invest in their centres of pulp and paper number of ways. Many own power plant. production. Almost 70 % of the municipalities have adopted a town’s 20,000 inhabitants are wait-and-see approach to the A plant with a long history connected to the district heating market but Valkeakosken Energia Valkeakosken Energia had been network, which is operated by decided instead to invest in their investigating several options for Valkeakosken Energia Oy own CHP plant to make sure that independent energy production (Valkeakoski Energy Ltd), a 100 % their customers get a reliable supply since the beginning of the 1990s. municipality-owned energy of affordable heat and electricity. One option under consideration company that provides heat, With electricity prices fluctuating was to expand existing co-operation electricity and gas to the consumers heavily, Valkeakosken Energia saw with the local paper industry. in Valkeakoski. The district heat is the new Pure Energy plant as the However, intensive analysis produced by a Pure Energy plant cornerstone on which to build their revealed that an independent gas delivered by Wärtsilä NSD in 1999. future. Independence was one of

12 - Wärtsilä NSD for paper industry town

engine power plant would be the organization. The plant is run best option. unmanned and someone from the The saying “well planned is half heat department visits the plant done” aptly describes how daily during weekdays. The PLC is Energia-Tietola set about the task. remotely connected to the Negotiations began in late 1997, the headquarters of Valkeakosken precontract was signed at the end of Energia and the duty manager can April 1998, and the final contract connect his portable PC to the was signed early in August 1998, by plant’s modem. The plant can also which time the foundation works be directly monitored by Wärtsilä’s were already under way. The service department in Vaasa (300 extension of the existing boiler km north of Valkeakoski) via a house was ready in December and modem, allowing them to analyze the topping-out ceremony was held any problems that arise and suggest on 2 February 1999. The plant was Valkeakoski the best maintenance alternative. started up in August, and the This ensures rapid reaction times handing over and test run periods Finland and minimizes downtime if the started in September 1999. The plant’s operation is interrupted for official opening ceremony and also any reason. the name-giving party were held in Valkeakosken Energia personnel mid-November 1999. The plant is handle minor maintenances (under called Energia-Tietola (Energy 4000 h), while larger maintenance Knowledge Centre) and the engines tasks are performed by Wärtsilä are named Helka and Kaino after standard and this has been the case NSD under a 5-year maintenance Valkeakoski’s legendary mayor and in Valkeakoski as well. The location contract. his wife. of the plant was also a challenge. Energia-Tietola, like almost all Pure The situation today Wärtsilä, the turnkey Energy plants, is situated in a The plant has now been in contractor densely populated area and there is operation about 6 months and both Wärtsilä NSD Finland Oy delivered an elementary school only 80 of the engines have almost 4000 the power plant on a turnkey basis, metres from the power plant. The running hours behind them. The but as always using several noise level was not permitted to owner has been happy with the subcontractors. Most of these were exceed 45 dB(A) at 25 metres from performance of the plant and already familiar from previous the wall of the Pure Energy plant. reports that co-operation with projects in Kerava and Ikaalinen. This requirement was fulfilled and Wärtsilä has been very satisfactory Forming the heart of the plant are now the only way of knowing Visits to Energia-Tietola will be two Wärtsilä 34SG gas engines both whether the plant is running or not arranged in connection with the producing 6 MW of electricity. Each is to look at the stack for signs of Power Gen exhibition in Helsinki engine and its generator were put steam. on 19 June 2000. If you are visiting on a common base frame and the show, you are most welcome to transported from Vaasa to Organization unchanged join the group. Energia-Tietola is a Valkeakoski in one piece each Although the establishment of modern plant well worth a visit. n weighing 100 tons. Energia-Tietola marked a new There is no emission legislation situation for the personnel of Author: Jukka Hakola for gas engine power plants in Valkeakosken Energia, there was no Key Account Manager Finland, but TA-luft is used as the need to change the existing Wärtsilä NSD Finland Oy

Energy News - 13 Energy in focus Meeting Turkey’s power needs

Think about Turkey and oriental images spring to mind such as exotic food, belly dancing and sultans with harems and eunuchs. If you happen to follow politics, you might remember more recent matters like the Kurdish problem and Turkey’s candidacy for membership of the European Union. Seldom, however, do people associate Turkey with modern manufacturing, fast economic growth, cellular phones and large international projects, but that is the reality today. In the past decade Turkey had an average 8 % growth in GNP, 1999 being the only regressive year with about 6 % negative growth. The year 2000 looks to be positive once again and, partly because of its continue at the same level for at application for EU membership, the least ten years from now. Turkey’s GWh x 1000 Turkish Government is enacting Electricity Generating and 140 new laws and stipulations with no Transmission Corporation (TEAS), a 120 time to lose. These new laws will public company that owns and support steady business growth in operates 15 thermal and 30 100 the country for some years to come. hydroelectric plants totalling over The social structure of Turkey has 20,000 MW of electrical capacity, 80 changed rapidly during the past two has been trying together with the 60 decades as well; large-scale Ministry of Energy and other state urbanization is taking place bodies to add generation capacity to 40 simultaneously with fast population meet the increase in demand. growth. To give you an idea, However, they have not been 20 Greater Istanbul has over 12 million successful owing mainly to delays in 0 inhabitants today compared to only the availability of natural gas, 80 90 91 92 93 94 95 96 97 98 99 5 million ten years ago, and the Turkey’s very slow legislative Fig. 1 Electric energy consumption population is growing by about progress in the past and lack of development in Turkey 300,000 each year. money. Electricity consumption per capita Private power generation capacity is still very low in Turkey, 1160 has been increasing steadily and group of companies, that produces kWh per annum, compared to today amounts to about 5000 MW. its own electrical and thermal average consumption of 6100 kWh About 1900 MW of this has been energy. The model offers interesting in the European Community. This built under the so called opportunities for private investors has created annual demand for 3000 “autoproducer” concept in more who are willing to form joint MW of new power generation and than 89 power plant installations. ventures with local factories that this demand is estimated to An autoproducer is a company, or a consume the power and energy.

14 - Wärtsilä NSD Fig. 2 24 MW Power Master in City of Van

In their long-term planning, TEAS if desired, when natural gas is covers hydro, nuclear, coal and available. gas-fired thermal power plants. Wärtsilä NSD is at the moment However, these plants will take negotiating three 20 MW heavy some years to be operational. To fuel-fired power plant orders. These meet the immediate needs for plants will produce electricity for power capacity, TEAS introduced a TEAS’s grid under the mobile power “mobile power plant concept” in concept mentioned above. All of 1998. This concept involves Fig. 3 45 MW Power Master in them, in fact, will be extensions to privately owned power plants with Silopi, Turkey existing plants, so the owners are capacities from 10 to 42 MW Karadeniz Energy, EnerPower and operating under a short-term PPA the low-grade product of all seven AKSA, which is a new customer to from TEAS. A total of 75 MW Turkish refineries. Wärtsilä. Each of the three power diesel-fired power plants were built Such power plants have proven plants will have four Wärtsilä 18V32 in 1999, all of them with a to be a reliable and economical generating sets and the plants will three-year take-or-pay PPA whose means of power generation be operational in just six months price is fixed to the US dollar. worldwide, and Turkey is no from signing of the contract. Despite these efforts, the Turkish exception. Wärtsilä NSD has This expansion project shows that population, Turkish industry and installed 154 MW in nine power TEAS is comfortable with the the whole economy are suffering a plants in Turkey so far, 37 MW of technology of our Power Masters severe shortage of electrical power which is dual fuel-fired (natural gas and this gives us a good every day. Heavy fuel-fired diesel - fuel oil) and the rest heavy fuel oil opportunity to expand our power plants are a good solution (HFO #6) applications. A further relationship with TEAS and local for Turkey as hundreds of 133.5 MW of heavy fuel power energy companies in the future. n megawatts can be operational in plants are under construction and less than 12 months. These power all will be operational this year. Author: Jari Kartano plants run on cheap and “almost Most of our heavy fuel-fired engines Director, Power Plant Business domestic” fuel, HFO #6, which is can be converted for gas operation Wartsila NSD – Enpa Dis Ticaret A.S.

Energy News - 15 Decentralized energy solutions

CHP for the BSc’s!

Photo: Jan Chlebik The Imperial College of Science, supplying electricity from the local LES that the engine solution offered Technology and Medicine, London, grid at 6.6 kV. During 1996 these by Wärtsilä NSD best met the needs has been working with Wärtsilä boilers were identified as coming to of the project. To achieve the NSD and London Electricity Services the end of their economical life. required output of 9 MWe at 6.6 kV to create an efficient, This gave Imperial College the and 4 MWth, Wärtsilä NSD’s environmentally friendly and opportunity to review its energy solution was based on two Wärtsilä economical combined heat and needs and potential solutions. After 18V28SG gas engines with an power plant on campus. careful consideration the College electrical efficiency of 41.5 %. Founded in 1907, Imperial chose the option of a Combined Competitive solutions from other College is one of the world’s Heat and Power (CHP) scheme. engine manufacturers were based leading institutions in the world for Imperial College entered into a on three engines to achieve the research, teaching and education in partnership agreement with London power and heat levels required. science, engineering and medicine. Electricity Services (LES) in which Recent mergers with Charing Cross LES would design, build, operate Tight fit and Westminster Medical School and maintain the CHP plant for a Lack of space was a critical factor. and the Royal Postgraduate Medical 15-year period. The CHP plant is After the boilers had been removed School have contributed to the owned by the College. A major the new Pure Energy plant had to recent increases in numbers. The problem for LES was the need to be installed in the old boiler house. College is now home and remove the four existing boilers To gain access, all new equipment workplace to around 9000 students. from the basement of the college, had to be lowered through a hole in The existing boiler plant, for the then install the new CHP system the road outside the College. College’s heating, was installed in without interruption to the College’s The complexity of the project the late 1950s. This plant consisted heating supply. meant that the installation of four heavy fuel oil-burning steam When it came to choosing an programme spanned over two boilers. London Electricity was engine supplier it became clear to years. As the heat supply to the

16 - Wärtsilä NSD College had to be maintained during installation, a way had to be found to achieve this during the project’s implementation. A temporary boiler-house was designed and constructed within the College grounds. During the summer of 1997 the temporary boiler house was connected to the College’s existing system. Once this temporary boiler house was up and running, work commenced on the decommissioning of the existing boiler plant and chimney. The new generator sets were tested in Wärtsilä NSD’s works before delivery. As the complete generator sets would not fit through the access hole in the road, they were broken down into their three main components: engine, alternator and base-frame, for delivery to the College.

Photo: Jan Chlebik

the correct time, and in the correct saving of around £800,000 per year. order, as each component had to be The environment will also benefit off-loaded directly to the basement through a reduction of 7500 tonnes since there was no room to store of CO2 per year. anything on site. The base frames “We are delighted with the new were lowered in first, followed by heat and power plant,” comments the engines, then the alternators. Mr Ron Jeeves, Imperial College’s Once reassembled, the complete Operations Manager. “It will generator sets were manoeuvred generate considerable savings for us into position and cocooned to allow on our energy costs. It will also the rest of the plant to be installed. provide the College with heating, hot water and air conditioning Heat recovery and re-use throughout the campus. It was also Imperial College will improve the important to us that this was an efficiency of the system even further environmentally friendly package.” by modifying its existing systems to “LES is extremely pleased and use the low-grade heat produced by proud to be associated with this

Photo: Jan Chlebik the gas engines. A full-dump project. After two interesting years cooling system, using heat in construction, we are looking The delivery of the generator sets exchangers, has been supplied to forward in putting the plant into through central London had to be remove the heat. Even before the beneficial operation.” n carefully co-ordinated, as timing use of this low-grade heat the was critical. They had to arrive at College will benefit from an energy

Energy News - 17 Technology in focus

Improved performance of the Wärtsilä 28SG

1 December 1999 marked the When the decision was made to now be seen in the excellent beginning of a new era for the move manufacturing of the Wärtsilä performance and reliability of the Wärtsilä 28SG gas engine. On that 28SG engine from Sweden to the newly built engines. day, the first Wärtsilä 28SG gas Netherlands in October 1998, we engine built in the Netherlands were faced with the challenge of Design improvements started commercial operation. This transferring not only the knowledge The overall vibration levels have took place in a power plant in but also all documents and been decreased considerably by Meaux, France, with two Wärtsilä hardware. However, this period changing the stiffness of the engine 18V28SG engines. It was followed gave us the opportunity to block. This in combination with a by a third engine in Lüneburg, implement improvements based on new gas pipe arrangement, new Germany, where the warranty the experience collected from the wastegate arrangement and the period started on 19 January 2000. operating engines that were built in addition of some supports has The two plants are now performing Sweden. Both minor and major minimized the vibration levels. very well and running 24 hours a improvements were made. The A fine-tuned piston design day. positive impact of the changes can together with a new piston ring

18 - Wärtsilä NSD package has made the combustion run between 4500 and 5500 hours owned by Energie Meaux, the local process more stable and less per year. Emissions comply with the district heating company. The sensitive to knocking. It has also ½-TA-Luft regulations and the electricity produced is sold to the decreased the lube oil consumption electrical efficiency is 40.7 %. national utility Electricité de France to about 0.25 g/kWh. Once the installation work was and the heat is distributed as district The Wärtsilä 28SG incorporates over, the Pure Energy plant was heating. The plant is scheduled to the WECS8000, the new version of given a performance commissioning run 3624 hours, 24 hours a day in the engine control system. The new test for 14 days during which the the winter season between 1 control system has proven to be a engine did not trip once. Since the November and 31 March. The plant lot more stable than the old system warranty period started, the engine will remain closed the rest of the and no problems have been has run extremely well. So far, the year. recorded since it was fine-tuned on engine has run for 1900 hours Until now the Pure Energy plant the first installations. without any major stops except for has accumulated 2550 hours/engine. the changing of spark-plugs. The performance has been very Wärtsilä NSD’s turnkey supply high and only a few stops have was split between the Netherlands occurred. Since then the availability factory for the performance package has steadily increased and in and the Hamburg network office for February and March it reached the local adaptation, installation and 98 %. supervision. Wärtsilä NSD’s service Energy Meaux closely followed department in Germany has made a the work on site to make sure long-term service contract with everything was being done in Avacon. accordance with the specifications and expectations. They are very satisfied and have just signed a Lüneburg, Germany repeat order for an identical Pure This installation, with one Wärtsilä Energy plant to Aulnay, also a town 18V28SG, is operating in the town outside Paris. Operation of the of Lüneburg, about 40 km from Aulnay plant is scheduled for 1 Hamburg. The Pure Energy plant is November 2000. owned and run by Avacon AG, one Wärtsilä NSD France acted as the of the biggest energy providers in turnkey contractor for the Meaux Germany. The plant has an Pure Energy plant, providing all electricity output of 4560 kWe and detailed engineering, and supplying produces 4.9 MW heat for the and installing all equipment needed Meaux, France district heating system. When in the cogeneration plant. Wärtsilä This Pure Energy plant, suitable, the heat can also be NSD France also has a 12-year incorporating two Wärtsilä 18V28SG accumulated in a large heat operation and maintenance contract engines, is located in Meaux, a accumulating tank. The plant will for the plant, ensuring its proper town just outside Paris. The plant is operation and maintenance. These two references illustrate that the Wärtsilä 18V28SG gas engine is now a mature product offering excellent performance in the field. n

Author: Tomas Ryckenberg Expert, Gas Engine Technology Wärtsilä NSD Nederland B.V.

Energy News - 19 Optimizing performance Energy Partner proves its worth in Denmark

Energy Partner agreements are general, however, the updated fuel supply. Alternatively they may agreements made by Wärtsilä NSD Energy Partner agreements contain comprise supply of materials, with its power plant customers more and wider maintenance work, including spare parts, as well as covering performance optimization, although this will continue to be services according to the customer’s modernization, reliability performed by the customer himself. requirements. enhancements and other proactive The escalating base of Wärtsilä services. The exact scope and mix NSD gas engines in Denmark now Daily support to maximize of services specified in these totals 181 MWe. An additional 6 availability agreements are tailored to the needs MWe is under construction, which One of the most important factors and operating conditions of each makes a total of 33 installations. All contributing to our customers’ customer. these installations are covered by a financial success is to maximize the Agreements that have been Wärtsilä Energy Partner service availability of the power plant operative for a number of years are agreement offering numerous equipment. Wärtsilä NSD’s efficient now being revised to cover the advantages. The most important of service organization offers daily customer’s current requirements, these are described below. support for all power plants which have often changed Energy Partner agreements can covered under Energy Partner considerably. All variations of these be quite extensive. They can cover agreements. agreements continue to exist after machinery breakdown, an Every day the power plant updating, from simple co-operation availability guarantee, lubrication oil installations receive on-line calls to full Operation & Maintenance. In delivery and cleaning etc., but not from Wärtsilä NSD Danmark’s Operation Support Centre. This ensures that the operational parameters are continuously assessed by an experienced technical advisor from the Operation Support Centre enabling the operator to form a rapid overview of the current operating conditions at the power plant. Any irregularities are addressed according to their nature. It is often enough, for example, to call the power plant in question and make arrangements for corrective action in co-operation with the operator. From time to time it is necessary to send a Wärtsilä NSD service engineer to the power plant if the operator is not present or is unable to solve the irregularities on his own. If difficult irregularities occur, Picture 1. A technician in the field is receiving remote guidance from the it is an advantage to our customer Operation Support Center via telephone and modem. that the Wärtsilä service engineer is

20 - Wärtsilä NSD Picture 2. Remote inspection and monitoring of the power plants covered under the Energy Partner agreements

fully aware of the cause of the requiring assistance, he receives organization and the way it works. irregularity on arrival at the site. remote guidance from the Wärtsilä NSD has been working While on his way, the Wärtsilä NSD Operation Support Centre via according to ISO 9001 since 1994. service engineer can discuss the telephone and modem (Picture 1). However, the most important factor problem with a technical adviser at Our customers also benefit contributing to good delivered the Operation Support Centre and greatly from the advanced quality is the competence and prepare a detailed solution in troubleshooting features of the commitment of our personnel. n advance, which ensures that the Wärtsilä Engine Control System problem is solved quickly and (WECS), which ensures that Author: efficiently. troubleshooting is handled Mogens Jakobsen systematically. The Operation Area Manager Remote troubleshooting Support Centre is equipped with a Power Plant Field Service Kent Hastrup Jensen, manager of complete WECS model for Wärtsilä NSD Danmark A/S Wärtsilä NSD Danmark’s technical troubleshooting and training etc. department, performs remote This supports the customer through inspections of the plants covered both higher availability and better under the Energy Partner fuel consumption. agreements via a modem Our customers consider that connection from the Operational Wärtsilä NSD provides a consistently Support Centre at Wärtsilä NSD high standard of service. One factor Danmark (Picture 2). When a of great importance to maintaining technician is sent to a power plant this standard is the service

Energy News - 21 Optimizing performance

Top quality in Colombia

In mid-1998, a team of people was plant as an ISO 9002 Quality Colombia Energy Operators S.A. selected by Wartsila NSD Assurance System pilot project in successfully passed the third-party Operations, Inc. to operate and May of 1999. pre-audit conducted by ICONTEC. maintain the 24.7 MW Pure Energy The project began in Annapolis, On 6 December ICONTEC plant under construction at the Maryland, in mid-May with an conducted the Certification Audit, Cementos Diamante cement factory accelerated training program. An which Colombia Energy Operators in Ibagué, Colombia. The factory is interdisciplinary team was formed to S.A. passed with flying colors. owned by Cemex, a multinational translate the procedures and to On 9 February 2000 the director Mexican corporation. At the end of provide guidance and approval of of ICONTEC presented Colombia the same year, Colombia Energy the procedures to ensure Energy Operators S.A. with the ISO Operators S.A. was established to compliance with the ISO standard. 9002 and the IQNET Certificates in a operate this and future power plant The basic engineering of the project simple ceremony at the Cementos projects in the country. in Colombia continued, and by the Diamante power plant. The IQNET Colombia Energy Operators S.A. beginning of September 1999 Certificate, which is valid in 27 has a clear vision to establish and procedures had been written and countries, guarantees that the maintain a standard of excellence in translated, 345 (MP2) tasks had Operations and Maintenance its power plant operations. The been written, and 134 forms had activities performed by Colombia company emphasizes that teamwork been customized. Energy Operators S.A. comply with based on achieving customer At the same time, and with the the International Standards of the satisfaction and exceeding the North American Quality Committee ISO 9002 Quality System. customer’s expectations is essential serving as judges, Colombia Energy Participants at the ceremony to putting this vision into effect. Operators S.A. created the phrase, included the President, the Quality Wartsila NSD Operations, Inc. chose “With Human Quality, We Generate Programs Manager and the Colombia Energy Operators S.A. Pure Energy,” as their quality Administrative Manager of Wartsila and the Cementos Diamante power slogan. On 9-10 November 1999, NSD Operations, Inc.

22 - Wärtsilä NSD At this moment, the Colombia Energy Operators S.A. team is close to completing implementation of the ISO 14001 Environmental Management System. The experience of Colombia Energy Operators S.A. and all the associated documentation will be used by Wärtsilä NSD Operations Group as a guide when implementing ISO 9002 in all plants under their operation. n

Author: Gustavo Fierro P. Plant Manager Colombia Energy Operators S.A.

Today, Cementos Diamante of maintained under internationally Ibagué can rest assured, with the recognized procedures as an certificate as its guarantee, that the integral part of the Quality power plant is being operated and Assurance Program.

Energy News - 23 Inside view – underground storage of natural gas Reciprocating compressors in natural gas underground storages in Germany

During the past decade natural gas increased in to reach this target depends on the accuracy of the importance as a source of prime energy. The consumption forecast and is limited by the existing exploration of new gas fields and expansion of the supply reserve. Injecting and withdrawing equipment natural gas grid in many countries has generated must have a very high degree of flexibility in order to thousands of applications for compressors. avoid further operational limitations. Only under these Pipelines are often run with turbo compressors, conditions can the storage be operated close to actual whereas reciprocating compressors are almost demand. exclusively used for gathering, gas lifting and The liberalization of the gas market is now creating re-injection close to the well. Underground storages, added scope for applications besides the need for however, are normally not located close to the well or natural gas storage, which is always related to the along the gas transportation route. Instead, they are individual providers and their areas. The use of free usually close to the consumer and are run using capacity in another grid, independent of actual reciprocating compressors. Underground storages consumption and spot trading of gas, only makes sense balance seasonal demand for gas (day/night and/or if storage capacities can be utilized. In this case varying winter/summer). supply prices can be used to generate added value. Maximum storage pressures vary between 100 bar Compressors for and 320 bar and they are fixed by the depth and the natural gas storage geological conditions. Equally invariable are the Natural gas is stored in intermediate storage facilities to minimum storage pressures, between 40 bar and 120 increase the security of supply and also to balance gas bar, which must also comply with the conditions in the supply as consumption varies. The gas is injected into field or the salt cavern. natural gas-tight geological formations or into artificially Following the line for gas consumption related to the constructed caverns. When required, the gas is released line for gas supply, periods of excess gas (=injection) from the storage and fed into the gas grid. show up as well as periods of additional demand Natural gas storages are typically former oil and gas (=withdrawal). The amount of deviation determines the fields, aquifers (similar geological formations, but filled necessary rates of injection or withdrawal. with water) and salt caverns especially made for the storage of natural gas. Operational requirements Seasonal fluctuation (summer/ winter) and peak of compressors consumption are the critical reference figures when The operational requirements for the injection and operating a natural gas storage. The ideal economic withdrawal units can be fixed based on the above target is constant gas purchasing over a year and 100 % parameters. The injection equipment mainly consists of use of the storage at the end of the period. The ability filters, a flow measuring device, gas compressor, gas cooler and separator. In this article, however, we consider only the design data of the compressor.

Gas demand The injection rates mentioned will be viewed in Gas delivery connection with the suction pressures – given by the supply pipeline – and the necessary redundancy. Based on a safety factor of at least2x50%foravailability, compressors in a natural gas storage will have the following typical design criteria:

Suction pressure ...... 40 – 85 bar (pipeline pressure) 7.10 4.11 2.12 30.12 27.1 24.2 24.3 21.4 19.5 16.6 14.7 11.8 Discharge pressure . . . . . 50 – 320 bar Fig. 1 Comparison between gas delivery and gas (storage pressure) demand. Flow rate . . . 12,000 – 200,000 m3 (Vn)/h

24 - Wärtsilä NSD • The compressors must be designed for different gas compositions and for the permissible level of impurities. • Since the investment costs of the compressor unit and the related energy costs for the injection of the gas make up a considerable proportion of the total investment, the main criteria for purchasing the compression equipment are the procurement costs and the economic operation of the compressors. Given these criteria 38 out of 41 natural gas storages in Fig. 2 Typical natural gas underground storage. Germany are provided with reciprocating compressors. The following operational conditions must be Turbo compressors are used in only three larger storage considered in order to select the optimum compressor: locations. The reason for the much higher population of • The compressor must be designed to compress the reciprocating compressors in natural gas storage is available excess volume under pipeline pressure up given by the advantages and disadvantages of the to the actual storage pressure. machines themselves. • The compressor works non-continuously. It will run Advantages: for long periods in the summer, but short injection • The actual pressure ratio arises automatically without periods will be necessary when gas consumption is any additional control. low, for instance at weekends. • The flow rate can be controlled exactly according to • The annual operating hours are about 2000 hrs, ie. the operators’ requirements. the availability of the equipment must be guaranteed • Partload operation is economically possible. for 6000 hrs. • The compressors can easily be maintained in stand-by operation. • Reciprocating compressors are lower in price than turbo units for the same pressure ratios and flow Flensburg rates. Disadvantages: Rostock Lübeck • Pulsation in the gas stream

Hamburg • Lubricants in the gas • Gas leaks. Bremen Specification and offers Berlin Hannover Natural gas is defined by giving either a gas composition or a description of the gas with the limits of fluctuation and the associated components. The compressor itself will be defined mainly by fixing the Kassel Leipzig Dresden suction and discharge pressures and the required flow. The definition of a clear design point will be the basis for the compressor selection and for future guarantees.

Frankfurt

Würzburg Area Design

Nürnberg Suction pressure bar, a 30 - 85 50 Suction temperature, °C 5 - 25 10 Discharge pressure bar, a 70 - 180 180 Stuttgart Flow rate, Nm3/h 50,000 Control range, % 25 – 100 Munich Freiburg Lubrication Mini lube Leak rate, Nm3/h <4 Prime mover Electric motor/gas engine

Fig. 3 Underground gas storages in Germany. Fig. 4 Example of specification

Energy News - 25 Inside view – underground storage of natural gas

A prime mover (electric motor or gas engine) and a ABC pre-selected rotating speed are also sometimes required. Design Boxer Boxer Boxer No. of stages 1 1 2 The demands for control, lubrication, low emissions No. of cylinders 4 6 4 from leaking and low residual pulsation form the basic Rotating speed 1000 750 420 requirements for the size and type of compressor. Power 2000 2200 2300 Additional requirements and features will depend on No. of valves 32 48 24 each project and the experience of the owner. Capacity control Bypass Valve unloading Valve unloading and bypass Based on this data Wärtsilä Compression Systems Performance 90 % 100 % 105 % selects the most suitable machine from the portfolio and Dimensions 8 x 4 10 x 4 8 x 5 the most economical compressor taking into Weight 45 55 50 consideration the customer’s specification. Price 100 % 115 % 125 % Calculation of the total scope of supply will give the Fig. 5 Table of possible data sales price. The compressor unit will normally be offered as a package so the bare shaft compressor often makes up only approx. 20 % of the total price. The multitude of possible solutions available with these Finally the most economical solution will be compressors also demonstrates their adaptability to the determined based on how accurately the compressor ever changing conditions of the market. It is very manufacturer can fulfil the customer’s specification. important to make use of the existing potential and at The example chosen showed the following offers: the same time to avoid costly accessories and designs The result shows different solutions for the same which are not required in the operation of natural gas task. All the alternatives in common are based on storage plants at all. composing available standard accessories. Costs for compressor Evaluation • Costs for prime mover When evaluating the various offers the customer’s • Costs for armatures essential criteria were considered and weighted in • Costs for pipelines importance. The following ranking will show as an • Costs for instrumentation example that the selection is based mainly on • Costs for control system operational and economic factors. The specific design • etc. criteria of the offer only indirectly influence the • evaluation criteria. Fig. 6 The various costs of a compressor unit. Covering of working area 10 % Efficiency at design and at part load 7 % To offer gas consumers a safe and cost-efficient gas Flow control range 8 % supply, suppliers must make use of all opportunities to Smoothness of running; pulsation 5 % Accessories 3 % purchase their gas under optimum conditions to keep Lifetime 5 % their own market shares. This can only be done by Spare parts, spare part costs 5 % using storage capacities in a flexible way. One Leakage rate 3 % Lube oil consumption 4 % interesting option for small companies might be Maintenance intervals 5 % common rental of a storage area which can be operated Service 10 % independently. The more the market is deregulated, the References installed 5 % higher the demand for storage space will become. It is Price 30 % also likely that existing injection capacities will be When evaluating the price, the purchase costs stated in increased in order to be able to inject available gas at the offer are considered as well as indirect expenditure short notice. This market worldwide offers Wärtsilä such as construction volumes, size of necessary Compression Systems excellent sales potential for gas n foundations and technical equipment for the building. engine driven compressors.

Summary Author: Siegmund Cierniak Reciprocating compressors are ideally suited to meeting Vice President the requirements for operating a natural gas storage. Wärtsilä Compression Systems

26 - Wärtsilä NSD What's New? Changes within the Top Management of Wärtsilä NSD Corporation

Business Area Power Plants Technology The current head of Wärtsilä NSD Corporation’s Business Area Mr Daniel Paro BSc (Eng.), who has headed Research & Power Plants, Mr Stefan Fant (Eng.) has been appointed Vice Development within Wärtsilä NSD for many years, will as of 15 President, Service from August 1, 2000. Mr Fant will be July, 2000, from a technology standpoint take responsibility for the responsible for integration of O&M and Service activities within the launch of Wärtsilä NSD´s new-generation smokeless engines. company. Professor Matti Kleimola, 54, Lic.Tech. has been appointed Group Vice President, Technology and a member of Wärtsilä Mr Pekka Ilvonen, 46, MSc (Eng.) MBA has been appointed Group NSD´s Board of Management from 15 July, 2000. Mr Kleimola is Vice President, Power Plants and a member of the Board of currently professor of internal combustion engine technology at Management of Wärtsilä NSD Group from August 1, 2000. Pekka Helsinki University of Technology, where he previously held the Ilvonen, currently Vice President of Systems Group in ABB Industry chair of machine design. Oy, brings over 20 years of experience in global project related Both Business Area Heads will be located at the Wärtsilä NSD business. headquarters in Helsinki. n Owners split Cummins Wärtsilä operations

The operations of Cummins Wärtsilä, a 50/50 joint venture owned by Wärtsilä NSD and Cummins Engine Company, have been divided between the owners. “The Cummins Wärtsilä joint venture has developed two families of new-generation heavy duty high-speed diesel and gas engines and brought them to market. Now that these engines have been introduced, both parent companies have decided to focus on the engines which best suit their core business. In this way synergy benefits will be achieved to improve efficiency and profitability from the current unsatisfactory level,” stated Mr Ole Johansson, President and CEO of Wärtsilä NSD. Wärtsilä NSD has taken over the manufacture, global sales and service of the CW200 and 220 engines (now Wärtsilä 200 and Wärtsilä 220SG), as well as the factory in Mulhouse, France, which produces the engines. The corresponding responsibilities for the CW 170 and 180 engines have been transferred to Cummins, along with the factory in Daventry, England. The global service for the engines manufactured by the joint venture’s predecessor, The new Wärtsilä NSD France SACM Diesel, as well as manufacturing and service of the UDX The new Wärtsilä NSD France is focusing on systems supply, and Poyaud engines in Surgères, have been transferred to manufacturing and service of Wärtsilä 200SG diesel and Wärtsilä NSD. The split was based on the net asset value of the Wärtsilä 220SG gas engines and on the UDX engines. It also has respective businesses on 31 December 1999. service responsibility for the SACM/ Poyaud, Crepelle and Sulzer Wärtsilä NSD and Cummins Engine Company formed the Z40 range of engines. The installed 13,500 MW engine base Cummins Wärtsilä joint venture in 1995 to develop and provides a sound foundation for the service business. In addition, manufacture the CW170 and CW200 high-speed engine families. the company is responsible for sales The scope of the joint venture was expanded in 1997 to include and service of all Wärtsilä NSD engines marketing, sales, engineering and service. and systems for France and To achieve synergy benefits the Mulhouse and Surgères Francophone markets. The main units activities have been merged into Wärtsilä NSD France, creating a of the company are in Mulhouse, new entity headquartered in Mulhouse. Cummins Wärtsilä’s own Surgères and Mantes. The new Wärtsilä sales and service distribution has mainly been integrated into NSD France’s pro forma net sales in Wärtsilä NSD’s global network. 1999 were approximately EUR 260 The operations transferred to Wärtsilä NSD will generate net million and it has 1060 employees. The sales of approximately EUR 133 million this year and have president of the new company is Mr approximately 830 employees. This represents approximately Clas-Eirik Strand. n two-thirds of the business volume of Cummins Wärtsilä.

Energy News - 27 What's New? Cogen takes off at Detroit airport

A major US airport is turning on to the benefits of cogeneration with the installation of an industrial plant to supply heat and power to the complex. Wärtsilä NSD has recently received the order, through its US cooperative venture with Cummins Power Generation America, Combined Energy Systems (CES), for a 17.2 MW Pure Energy radiators, catalysts for CO and VOC control, silencers, switchgear, plant, for the new $1.2bn Midfield Terminal at Detroit Metro neutral grounding resistors, and purge and explosion venting. Airport. The Metro’s continuing expansion means a reliable, Detroit Metro is an international airport serving the upper on-site power supply far more mid-west region and the city efficient and profitable than Detroit of Detroit. Electricity and hot electricity from the grid. water will be supplied primarily The new plant will provide for to the Northwest Airlines Midfield Terminal’s energy needs Expansion by the energy and supports the US Department of service company, Metro Energy Energy’s commitment to double the U.S.A. LLC, which will also be able to sell amount of combined heat and any excess power to the national power usage in America by 2010. grid. Part of a public-private partnership As the airport is accessible to the between Wayne County, MI and Northwest public and in constant use, CES must Airlines, the Midfield Terminal project is in the ensure the Pure Energy plant meets airport midst of a five-year design and construction process. appearance and line-of-sight requirements When it opens in late 2001, it will rank among the world’s finest for the control tower. Fitting all the systems air facilities. has proved to be a challenge, given the limited space available. Wärtsilä’s Pure Energy plant, supplied by CES, will include The Pure Energy plant will be commissioned at the end of 3 x Wärtsilä 18V34SG gas engine gensets with hot water recovery September 2000. n units. Auxiliary equipment will comprise of piping module,

Diesel plant orders highlight Indian success

Two new IPP Power Master plant orders have highlighted Wärtsilä number of roads and bridges strengthened to ensure safe NSD’s continuing success in India. delivery. A 107 MWe power plant for the Balaji Power Corporation Pvt. The US$70 million EPC Samalpatti contract will be completed Ltd is underway in the Indian district of Madurai. in spring 2001. A huge shortfall in capacity has been the Wärtsilä NSD is supplying the power plant on a turnkey main reason behind these two new-build projects. The basis. The 7 x Wärtsilä 18V46 engines are being gap between supply and demand in the Tamil Nadu state shipped from Finland, along with the necessary is approximately 12 %. n auxiliary equipment. When completed, the Power Master plant, based in Tamil Nadu state, will supply electricity to the local grid. The almost US$70 million EPC contract is scheduled for completion in autumn 2001. India Meanwhile, Wärtsilä NSD is also supplying another Power Master plant to the town of Samalpatti, also in Tamil Nadu. This 106 MWe plant, built for the Samalpatti Power Madurai, Tamil Nadu Company Private Limited, is similarly based on 7 x Wärtsilä 18V46 diesel engines. Wärtsilä in Finland is supplying the generating sets, plus auxiliaries, whilst the company’s Indian subsidiary will construct the powerhouse and supply tanks and pipes for the project. Overseas supply of the engines for both projects has meant careful planning of land transportation in India, with a

28 - Wärtsilä NSD 96 MW Power Master to El Salvador

Duke Energy International has recently signed a contract with Wärtsilä NSD to supply a 96 MW Power Master heavy fuel plant to Generadora Acajutla, west of the city of Acajutla in El Salvador. Acajutla is located on the coastal plain in the western part of El Salvador and the Generadora Acajutla site is two kilometres from the Port of Acajutla, the largest port in El Salvador. contract called for 48 MW of power in seven months and 96 MW In mid-1999, Duke Energy International (DEI) was the of power in nine months. The plant complies with the successful bidder in the international tender for the thermal power Environmental Impact Study (EIS) made according to the World generating assets of the Salvadorian utility, Bank 1998 Guidelines. Comisión de Energía Eléctrica del Río Lempa (CEL), DEI, a wholly owned subsidiary of Duke Energy with assets located in Acajutla. As part of its privatization valued at approximately $30 billion, is one of the world’s leading program, CEL has privatized its distribution and international energy companies. It offers thermal generation assets. energy trading and marketing, risk DEI will expand the 200 MW management, natural gas and power generating capacity at Generadora development expertise and operations Acajutla by 96 MW to meet the region’s El Salvador services across Latin America, 10 % annual growth in electricity demand Asia-Pacific and Europe. Within Latin with a Wärtsilä NSD Power Master plant. America, DEI’s energy portfolio includes This will result in the most efficient and nearly 3460 gross megawatts of hydro lowest thermal power generation cost in Generadora Acajutla and thermal power generation, 125 miles El Salvador. of natural gas pipeline, 245 miles of electrical transmission, and On 27 January 2000 Wärtsilä NSD affiliates signed separate energy trading and marketing activities in Argentina, Belize, Brazil, supply contracts and a construction contract for the 96 MW Ecuador, El Salvador and Peru. Power Master power plant with Generadora Acajutla. The facility Wärtsilä NSD appreciates the opportunity to supply such a will consist of six Wärtsilä 18V46 generating sets together with an facility to DEI and looks forward to a long and fruitful relationship electrical substation to step the voltage up to 115 kV. The EPC with one of the world’s leading international energy companies. n

Who's New? Appointments

Wärtsilä NSD Finland Oy Jussi Heikkinen has also been appointed Mr Tore Björkman was appointed Area Managing Director of Power Partners Oy, a Director with Finland, Russia and Eastern joint venture company between Wärtsilä Europe as his area of responsibility on 1 Development & Financial Services Oy and March 2000. He has previously worked as MeritaNordbanken. PPO provides a vehicle Director, Power Project Development, for the leasing of equipment manufactured Middle East and Africa at Wärtsilä by Wärtsilä NSD Corporation. Development and Financial Services, and before this he was Managing Director of Wärtsilä NSD Nederland Wärtsilä NSD Pakistan Ltd. Tore Björkman Jussi Heikkinen Mr Ronald Westerdijk was appointed Area Sales Manager with the Benelux Wärtsilä Development & countries, Germany and Denmark as his Financial Services Oy area of responsibility on 1 February 2000. Mr Jussi Heikkinen has been appointed He has previously worked as Area Sales Vice President as of 1 February 2000. He Manager for the gas engine market in the will be responsible for developing the USA. Energy Services business concentrating on selling total energy solutions to industrial Mr Mikael Backman was appointed Area customers. Mr Heikkinen will be based in Sales Manager, North America on 1 Helsinki. He has previously worked as Area Ferruary 2000. He was previously Project Director for Eastern Europe. Manager at Wärtsilä NSD Nederland B.V. Ron Westerdijk Mikael Backman

Energy News - 29 Wärtsilä NSD Corporation Worldwide

ARGENTINA Wärtsilä NSD Wuhan Repr. Office Wärtsilä NSD Finland Oy Wärtsilä NSD India Ltd. Wärtsilä NSD Argentina S.A. Representative Office Stålarminkatu 45, P.O.Box 50 Paul Commercial Complex, 5th Floor, Cerrito 836 1st floor of 25 Room 1501-02, Deng Yue Building 20810 Turku Ajai Square,Wurdha Road 1010 Capital Federal 314 Xin Hua Road, Wuhan, Tel...... +358 (0)2 264 3111 Nagpur 440015 Tel: ...... +54 11 4816 4131 Hubei 430022, P.R. China Fax...... +358 (0)2 264 3169 Tel: ...... +91 (0)712 224291/224294 Fax: ...... +54 11 4816 4135 Tel:...... +86 (0)27 57 83 530 Fax: ...... +91 (0)712 224 226 Fax:...... +86 (0)27 57 83 033 FRANCE AUSTRALIA Wärtsilä NSD Taiwan Ltd. Wärtsilä NSD France INDONESIA Wartsila NSD Australia Pty Ltd. 3F-2, No 111 Sung Chiang Road 1, rue de la Fonderie, B.P. 1210 PT Wärtsilä NSD Indonesia 48 Huntingwood Drive (Boss Tower Building), Taipei, F-68054 Mulhouse Cedex P.T. Stowindo Power Huntingwood, NSW 2148 Taiwan R.O.C. Tel:...... +33 (0)3 89 666 868 Cikarang Industrial Estate Tel:...... +61 (0)2 9672 8200 Tel:...... +886 (0)2 515 2229 Tlx: ...... 881 699 F Jl. Jababeka XVI, Kav. W-28 Fax:...... +61 (0)2 9672 8585 Fax:...... +886 (0)2 517 1916 Fax:...... +33 (0)3 89 666 830 Cikarang 17530, Bekasi, Jawa Barat Wärtsilä NSD France S.A. Tel...... +62 21 893 7654 Wärtsilä NSD Australia Pty Ltd. Wärtsilä NSD Taiwan Ltd. 109 Broadway , Bassendean WA 6054 28, Boulevard Roger Salengro Fax...... +62 21 893 7655 Kaoshiung Service Station, 11F-1, 78200 Mantes-la-Ville, B.P.1224 Tel:...... +61 (0)8 9377 3337 502 Chiu Ru 1st Road, Kaohsiung, Taiwan IRELAND Fax:...... +61 (0)8 9377 3338 78202 Mantes-la-Jolie Cedex R.O.C. Tel:...... +33 (0)1 34 78 88 00 Wartsila NSD Ireland Ltd. BANGLADESH Tel:...... +886 (0)7 392 8075 Tlx: ...... 696922 F Dublin Executive Office Center Fax:...... +886 (0)7 392 8083 Wärtsilä NSD Bangladesh Ltd. Fax:...... +33 (0)1 34 78 88 03 Red Cow, Naas Road, Dublin 22 Tel: ...... +353 1 459 5668 Summit Centre (4th floor) COLOMBIA Wärtsilä NSD France S.A. 18 Kawran Bazar C/A Etablissement de la Méditerranée Fax: ...... +353 1 459 5672 Wärtsilä NSD Colombia S.A. R.N. 8-Les Baux, F-13420 Gémenos Dhaka - 1215 ITALY Tel: ...... +880 2 912 1111 Avenida 19 # 118-30 Oficina 607 Tel:...... +33 (0)4 42 320 606 Wärtsilä NSD Italia S.p.A. Fax: ...... +880 2 811 3124 Edificio Centro de Neqocios Tlx: ...... 400661 F Santafe de Bogotá, Sur America Fax:...... +33 (0)4 42 320 666 Bagnoli della Rosandra 334 BRAZIL Tel:...... +57 (0)1 621 5705 Wärtsilä NSD France S.A. I-34018 Trieste Wärtsilä NSD do Brasil Ltda...... 621 5813, 621 6246 Etablissement du Nord Tel: ...... +39 040 319 5000 Av. Rio Branco, 116/12 andar Fax:...... +57 (0)1 616 8466 Z.I.A. Rue de Lorival, BP 411, Fax: ...... +39 040 827 371 Centro - Rio de Janeiro 20040-001 F-59474 Seclin Wärtsilä NSD Italia S.p.A. Tel:...... +55 (0)21 505 6562 CYPRUS Tel:...... +33 (0)3 20 625 800 Via Nazario Sauro, 5, 20068 Canzo di Fax:...... +55 (0)21 505 6572 Wärtsilä NSD Cyprus Ltd. & Tlx: ...... 110818 F Peschiera Borromeo (Milano) Wärtsilä NSD Mediterranean Ltd. Fax:...... +33 (0)3 20 327 147 Tel: ...... +39 02 553 9061 CANADA Rebecca Court, 2nd Floor Fax: ...... +39 02 553 90639 Wärtsilä NSD Canada Inc. 1 Promachon Eleftherias, Ayios Athanasios GERMANY 50 Akerley Boulevard, Unit 11 4103 Limassol Wärtsilä NSD Deutschland GmbH IVORY COAST Burnside Industrial Park, Dartmouth Tel:...... +357-5-322 620 Schlenzigstrasse 6, 21107 Hamburg Wartsila NSD ACO (Halifax), Nova Scotia B3B 1R8 Fax:...... +357-5-314 467 Tel:...... +49 (0)40 751 900 17, Rue Pierre et Marie Curie Tel: ...... +1 902 4681 264 Fax:...... +49 (0)40 751 901 90 Zone 4A, Abidjan Fax: ...... +1 902 4681 265 DENMARK Wärtsilä Compression Systems GmbH Tel:...... +225 351 876, 350 351 Wärtsilä NSD Danmark A/S Saatwinkler Damm 44-46 Tlx:...... 42226 sacm ci CHILE Jens Munksvej 1, P.O.Box 67 D-13627 Berlin Fax: ...... +225 351 506 Wärtsilä NSD Chile Ltda. Tel:...... +49 (0)30 346 7060, 70620 DK-9850 Hirtshals JAPAN Nueva de Lyon 96, Oficina 305, Tel: ...... +45 99 569 956 Fax:...... +49 (0)30 346 70622 Providencia Santiago Fax: ...... +45 98 944 016 Wartsila Diesel Japan Co. Ltd. Tel:...... +56 (0)2 2325 031 GREECE Kobe Yusen Bldg. 1-1-1, Kaigan-dori Wärtsilä NSD Danmark A.S...... 2325 469, 2325 608 Wärtsilä NSD Greece Chuo-ku, Kobe 650 Fax:...... +56 (0)2 2328 754 Akseltrov 8, 1st Floor 4, Loudovikou Square, GR-185 31 Tel:...... +81 (0)78 392 5333 DK-1554 Kopenhagen V Piraeus, P.O.Box 860 12, Fax:...... +81 (0)78 392 8688 Wärtsilä NSD Chile Ltda. Tel: ...... +45 33 454 133 Desiderio García, Manzana C GR-185 03 Piraeus Wartsila Diesel Japan Co. Ltd. Fax: ...... +45 33 454 133 Tel:...... +30 1 413 54 50, 413 5582 Sitio 23-A, Barrio Industrial, Iquique Binary Kita-Aoyama Bldg, 8F, 3-6-19, Tlx: ...... 212568 241006 nava gr Tel:...... +56 (0)57 415 226 Wärtsilä NSD Danmark A/S Kita-Aoyama, Minato-ku, Tokyo 107 Fax: ...... +30 1 4117 902 Fax:...... +56 (0)57 414 731 Hækken 3, 6700 Esjberg Tel:...... +81 (0)3 3486 4531 Tel: ...... +45 75 13 33 00 Fax:...... +81 (0)3 3486 4153 Wärtsilä NSD Chile Ltda. Fax: ...... +45 75 13 35 75 INDIA Autopista 5980, Talcahuano Wärtsilä NSD India Ltd. KENYA Tel:...... +56 (0) 41 421 561 ECUADOR 76, Free Press House Wärtsilä NSD Eastern Africa Ltd. Fax:...... +56 (0) 41 420 229 Wartsila NSD del Ecuador S.A. Nariman Point Mumbai 400 021 House of Vanguard, Fuji Plaza CHINA Av. 12 de Octubre 2000 y Gral.Salazar Chiromo Road, Westlands, Nairobi Edif. Plaza 2000, Piso 8, Quito Tel:...... +91 (0)22 281 5601 Wärtsilä NSD (China) Ltd. Fax:...... +91 (0)22 284 0427 Tel:...... +254-2-446 985, 446 986 Room 4201, Hopewell Centre Tel: ...... +593 2 235 130 Fax:...... +254-2-446 719 Fax: ...... +593 2 235 110 Wärtsilä NSD India Ltd. 183 Queen´s Road East 48, Neco Chambers, Sector 11 KOREA Wanchai, Hong Kong FINLAND CBD Belapur, New Mumbai 400 614 Tel: ...... +852 2528 6605 Wärtsilä NSD Korea Ltd. Wärtsilä NSD headquarters: Tel: ...... +91 (0)22 757 5361, 757 5371 Noksan Bldg. 6th Fl. Tlx: ...... 72571 wdhk hx Tlx:...... 11 83078 helm in Wärtsilä NSD Corporation 50-11 Yonggang-dong, Mapo-Gu Fax: ...... +852 2885 7544 Fax:...... +91 (0)22 7575177 Wartsila NSD (China) Ltd. Wärtsilä Development & Seoul 121-070 Financial Services Oy Wärtsilä NSD India Ltd. Hong Kong Service Station Tel: ...... +82 2 3272 8032-5 Power Partners Oy 24, Siri Fort Road, New Delhi - 110049 Fax: ...... +82 2 3272 8036 Shop No. 1, Ground Floor John Stenbergin ranta 2, P.O.Box 196 Tel: ...... +91 (0)11 625 1105-8 5 A Kung Ngam Village Road Fax:...... +91 (0)11 625 1109 Wärtsilä NSD Korea Ltd. 00531 Helsinki Hyangki Bldg. 4th Fl., 509-20, Shau Kei Wan, Hong Kong Tel:...... +358 (0)9 709 5600 Wärtsilä NSD India Ltd. Tel: ...... +852 2750 3880 Jaesong-dong, Haeundae-Gu Fax: ...... +358-(0)9 709 5700 (Corporate) Lakshimi Chambers, 30, Anna Salai Pusan 612-050 Fax: ...... +852 2750 3669 Fax: ...... +358 (0)9 709 5710 Saidapet, Chennai 600015 Wärtsilä NSD Shanghai Repr. Office Tel: ...... +82 51 783 9015/6 (WDFS & Power Partners) Tel: ...... +91 (0)44 230 1080-88 Unit A, 13 A/F Jiu Shi Xin Mansion 918 Fax: ...... +91-(0)44-230 0477 Fax: ...... +82 51 783 9017 Huai Hai Road (M) Wärtsilä NSD Corporation Wärtsilä NSD Finland Oy Wärtsilä NSD India Ltd. MEXICO Shanghai 200020, P.R. China B Wing, 6th Floor, Rama Bhavan Complex, Tel:...... +86 (0)21 6415 5218 Wärtsilä Development & Wartsila NSD de Mexico S.A. Financial Services Oy Kodialbail, Mangalore 575 003 Fax:...... +86(0) 21 6415 5868 Guillermo Gonzalez Camarena Wärtsilä NSD Operations Ltd. Tel:...... +91 (0)824 441 722/444 577 #1100 S Piso Wärtsilä NSD Beijing Repr. Office Järvikatu 2-4, P.O.Box 244 Fax:...... +91 (0)824 443 556 Col Centro Ciudad de Santa Fe Room 2505, CITIC Building 65101 Vaasa Wärtsilä NSD India Ltd. Mexico D.F. 01210 19 Jianguomenwal Dajie, Tel:...... +358 (0)6 3270 11, Circuit House Bihar Area (North) Tel: ...... +525 570 9200 100004 Beijing, P.R. China Fax: ...... +358 (0)6 317 1906 Jamshedpur 831 001, Fax: ...... +525 570 9201 Tel:...... +86 (0)10 6593 1842 (Technology & Manufacturing) Tel:...... +91 (0)657 427086 Fax:...... +86 (0) 10 6593 1843 Fax: ...... +358 (0)6 327 1771 Wärtsilä NSD India Ltd. THE NETHERLANDS Wärtsilä NSD Dalian repr. office (Power Plants headquarters) Flat No 302, 3rd Floor, Oxford Plaza, Wärtsilä NSD Nederland BV Room 815-816 Furama Hotel 9-1-129/1 Sarojini Devi Road, Fax: ...... +358 (0)6 327 1757 Hanzelaan 95, 8017 JE Zwolle No. 60 Ren Min Road, Dalian 116001 Secunderabad 500 003 P.O.Box 10608, 8000 GB Zwolle Tel: ...... +86-(0)411-2822 100 (Operations & WDFS) Tel: ...... +91 (0)40 7715383/4/5 Tel:...... +31 (0)38 425 3253 Fax: ...... +86-(0)411-2804 455 Wärtsilä NSD Finland Oy Tlx:...... 4256802 iftk in Fax:...... +31 (0)38 425 3973 Wärtsilä NSD Panyu Service Station Tarhaajantie 2, P.O.Box 252 Fax:...... +91 (0)40 7715377 Lian Hua Shan, Guaranteed 65101 Vaasa Wärtsilä NSD India Ltd. NORWAY Processing Zone, 511440 Panyu, Tel...... +358 (0)6 3270 East Anglia House, 3 C, Camac Street Wärtsilä NSD Norway AS Guangdong P.R China Fax: .....+358 (0)6 356 9133 (Power Plants) Calcutta 700 016 N-5420 Rubbestadneset Tel:...... +86 (0)20 848 66 241 Fax: ...... +358 (0)6 356 9155 (Service) Tel:...... +91 (0)33 245830/2269567 Tel: ...... +47 53 42 25 00 Fax:...... +86 (0)20 848 66 240 Fax:...... +358 (0)6 356 7188 (Marine) Fax: ...... +91 (0)33 249 7535 Fax: ...... +47 53 42 25 01

30 - Wärtsilä NSD Wärtsilä NSD Norway AS SINGAPORE U.S.A. GHANA Hestehagen5-Holter Wartsila NSD Singapore Pte Ltd. & Wartsila NSD North America Inc. Inter-Afrique Holdings Ltd. Industriområde, N-1440 Drøbak Wärtsilä NSD Power Development 201 Defense Highway, Suite 100 Kingsway Building Tel: ...... +47 64 937 650 (Asia) Ltd. Annapolis, MD 21401 2nd Floor, Suite 201 Tlx: ...... 19376 14, Benoi Crescent, Singapore 629977 Tel: ...... +1 410 573 2100 45 Kwame Nkrumah Avenue, Arca Fax: ...... +47 64 937 660 Tel: ...... +65 265 9122 Fax: ...... +1 410 573 2200 Tel: ...... +233 (0)21 220 896, 246 284 Fax:...... +233 (0)21 221 005 PAKISTAN Fax:...... +65 265 0910, 264 3186 Wärtsilä NSD Operations, Inc. Wartsila NSD Pakistan (Pvt) Ltd. SOUTH AFRICA 201 Defense Highway, Suite 100 GUAM Annapolis, MD 21401 16-kilometer, Raiwind Road Wartsila NSD (South Africa) Pty Ltd. Pacific Power Resources, Inc. P.O.Box 10104, Lahore Tel: ...... +1 410 573 2100 238 East Marine Drive, Suite 3 36 Neptune Street, Paarden Eiland Fax: ...... +1 410 573 2268 Tel:...... +92 (0)42 5418846 P.O.Box 356, Cape Town 7442 Hagátña 96910, Guam, U.S.A. Fax:...... +92 (0)42 5413481 Wartsila Development & Financial Tel:...... +27 (0)21 511 1230 Tel: ...... +1 671 477 4030 Services Inc. Fax: ...... +1 671 472 4505 Wartsila NSD Pakistan (Pvt) Ltd. Fax:...... +27 (0)21 511 1412 2nd Floor, P.O.F. Liaison Offices 201 Defense Highway, Suite 100, 252 Sarwar Shaheed Road Wartsila NSD (South Africa) Pty Ltd. Annapolis, MD 21401 HAITI Saddar, Karachi P.O.Box 7368, 8 Rooisering Street, Tel:...... +1-410-573 9750 Societe Generale De Distribution S.A. Tel:...... +92 (0)21 568 5734 Weltevreden Park 1715 Roodeport Fax:...... +1-410-573 4928 (SOGED) Fax:...... +92 (0)21 568 2797 Tel: ...... +27-(0)11475 8142 Wartsila NSD North America Inc. P.O.Box 73, 4 Route de Mais Gate Fax: ...... +27-(0)11475 8045 2900 SW 42nd Street Port-au-Price PERU Tel: ...... +509 249 1666 SPAIN Fort Lauderdale/Hollywood, FL 33312 Wartsila NSD del Perú S.A. Tel: ...... +1 954 327 4700 Fax: ...... +509 249 1660 J. Arias Aragüez 210 Wartsila NSD Ibérica S.A. Fax: ...... +1 954 327 4773 Poligono Industrial Landabaso, s/n, INDIA San Antonio - Miraflores, Lima 18 Wartsila NSD North America Inc. Tel: ...... +51 1 241 7030 Apartado 137, 48370 Bermeo (Viscaya) Banaras House Engineering Ltd. Summit Tower Fax: ...... + 51 1 444 6867 Tel: ...... +34 94 617 01 00 LPG House Eleven Greenway Plaza, Suite 2920 E-18, B-1 Extn. Mohan Co-operative Fax: ...... +34 94 617 01 12 PHILIPPINES Houston, Texas 77046 Industrial Area Wartsila NSD Canarias S.L. Wartsila NSD Philippines, Inc. Tel: ...... +1 713 840 0020 Mathura Road, New Delhi 110 044 Misiones 8 (El Cebadal), Apartado 2831 N0.6 Diode Street, Fax: ...... +1 713 840 0009 Tel:...... +91 (0)11 695 5070 35008 Las Palmas de Gran Canaria Light Industry and Science Park Wartsila NSD North America Inc. Fax:...... +91 (0)11 695 5078, 5079 Tel: ...... +34 928 467 859 1100 NW 51st Street, Bo. Diezmo, Cabuyao, Laguna IRAN Tel:...... +63 (49) 543 0382 Fax: ...... +34 928 465 931 Seattle, WA 98107-5125 Kalajoo Company Fax:...... +63 (49) 543 0381 Tel: ...... +1-206-784-9100 SWEDEN Fax: ...... +1-206-781-5586 Apr. 302 Sayeh Bldg. POLAND Wärtsilä NSD Sweden AB Wartsila NSD North America Inc. No.1409 Vali Asr Ave. P.O.Box 19945-583, Tehran 19677 Wärtsilä NSD Polska Sp. z.o.o. Åkerssjövägen, S-461 65 Trollhättan 5132 Taravella Road, Marrero Tel:...... +98 21 204 5888, 204 3528 Al. Wilanowska 372 P.O.Box 920, S-461 29 Trollhättan (New Orleans), Louisiana 70072 Fax: ...... +98 21 204 4532 02-665 Warszawa Tel:...... SE-46 520 42 26 00 Tel: ...... +1 504 341 7201 Tel: ...... +48 22 843 8751 Tlx:...... 42141 diesel s Tlx:...... 910-290 0035 wartsila marr KUWAIT Fax: ...... +48 22 843 8752 Fax:...... SE-46 520 42 27 79 Fax: ...... +1 504 341 0426 Abdul Aziz Yousuf Al-Essa & Co. w.l.l. PORTUGAL SWITZERLAND Wärtsilä NSD North America, Inc. P.O.Box 3562 Safat, 13036 Safat Mt. Vernon (Manufacturing) Tel:...... +965 483 2229, 483 3051 Wartsila Diesel Motores Wärtsilä NSD Switzerland Ltd. Tlx: ...... 23576 sauid kt (Portugal) Lda 1410 Old Highway 69 South Zürcherstrasse 12, P.O. Box 414 Fax: ...... +965 484 0829 Zona Industrial Da Maia I Mt. Vernon, Indiana 47620 CH-8401 Winterthur Tel: ...... +1 812 838 9280 SectorX-Lote362, No. 43, Tel:...... +41 (0)52 262 4922 MADAGASKAR Apartado 1415, P 4470 Maia Codex Fax: ...... +1 812 838 9288 Fax:...... +41 (0)52 262 0720 Wärtsilä NSD North America, Inc. Societe Malgache d´Equipements Tel:...... +351 (0)2 943 9720 Frigorifiques Fax:...... +351 (0)2 943 9729 TURKEY 1 Blue Hill Plaza, 3rd Floor Ouest Ankadimbahoaka, Route Digue Box 1544, Wärtsilä NSD – Espa Dis Ticaret A.S. P.O.Box 4395, Antanarivo PUERTO RICO Pearl River, NY 10965 Spor. Cad. No. 92 Besiktas Plaza Tel:...... +261 263 09, 280 93, 308 60 Wärtsilä NSD Carribean Inc. Tel: ...... +1 914 623 1212 A Blok Zemin Kati Besiktas Tlx: ...... 22335 Metro Office Park, 2 Calle 1, Suite 101 Fax: ...... +1 914 623 3385 80610 Istanbul Guaynabo 00968, Puerto Rico Wärtsilä NSD North America, Inc. MOROCCO Tel: ...... +90 212 258 5516, Tel: ...... +1 787 792 8080 Harbor Cove Plaza, Suite 210 Société Salva Fax: ...... +1 787 792 2600 ...... 5532, 5438, 5193 29000 South Western Ave. 93 Bd de la Résistance, Fax: ...... +90 212 258 9998 Rancho Palos Verdes, CA 90275 21700 Casablanca RUSSIA UNITED ARAB EMIRATES Tel: ...... +1 310 831 7424 Tel:...... +212 (0)2 304 038 Wärtsilä NSD Corporation Fax: ...... +1 310 831 7426 Tlx:...... 27012 SOSALVA Representative Office Wartsila NSD Gulf FZE Fax:...... +212 (0)2 305 717, 306 675 Wärtsilä NSD Energoservice P.O.Box 61494, Jebel Ali, Dubai VENEZUELA Shvedsky Pereulok, 2 Tel: ...... +971 (0)4-838 979 Wartsila NSD Venezuela PAKISTAN 191186 St.Petersburg Fax: ...... +971 (0)4-838 704 San Martin Postal 1020 Ameejee Valleejee & Sons (Ptv.) Ltd. Tel: ...... +7 812 118 6361 Ameejee Chambers, Campbell St. UNITED KINGDOM Apartado Postal N20438, Caracas ...... 118 6334 Tel: & Fax:...... +58 33 214 24 P.O.Box 51, Karachi 74200 Fax: ...... +7 812 118 6329 Wärtsilä NSD UK Ltd. Tel: .....+92 (0)21 2625492, 262, 262 7945 Wärtsilä NSD Corporation Tubs Hill House, London Road, VIETNAM Tlx:...... 27361 avsns pk Representative Office Sevenoaks, Kent TN13 1BL Wartsila NSD Vietnam Fax:...... +92 (0)21 262 7817/2621910 Pokrovsky Bulvar, 4/17, Bldg 4B Tel:...... +44 (0)1732 744 400 Central Plaza Office Building, 7th Floor PORTUGAL 101000 Moscow Fax:...... +44 (0)1732 744 420 17 Le Duan Street, Dist. 1 Tel: ...... +7 095 937 7589 Wärtsilä NSD UK Ltd. Coepro - Consultores E Engenheiros Ho Chi Minh City Projectistas, Ltda. Fax: ...... +7 095 937 7590 Girdleness Trading Estate Tel: ...... +848 8 244 534, 35 Praca Prof. Santos Andrea, 2,3°E Wärtsilä NSD Energoservice Wellington Road, Aberdeen AB11 8D8 Fax: ...... +848 8 294 891 P-1500 Lisboa Miusskaya Square, 7, Office 119 Tel:...... +44 (0)1224 871166 Tel: ...... +351 (0)21 714 1120, 1 716 0491 125811 Moscow Fax:...... +44 (0)1224 871188 Fax:...... +351 (0)21 715 5638 Tel: ...... +7 095 251 7819 Wärtsilä NSD UK Ltd. Fax: ...... +7 095 251 4364 Sunrise House, Hulley Road Representatives ST. LUCIA Wärtsilä Vladivostok Ltd Macclesfield, Cheshire, SK10 2LP EGYPT Sure Line Ul.Krygina, 57, Office 40-42 Tel:...... +44 (0)1625 500 116 La Toc Higway Alarm Consulting & Contracting 690090 Vladivostok Fax:...... +44 (0)1625 500 117 P.O.Box 551, Castries 1st Building, Flat 507, Tel: ...... +7 4232 518 500 Wärtsilä NSD UK Ltd. Tel: ...... +1 758 452 3415 Fax: ...... +7 4232 518 501 El Alaam City, Agouza, Giza Fax: ...... +1 758 452 3447 Unit 3, Millbrook Industrial Estate Tel: ...... +20 2 347 1873 SAUDI ARABIA 3rd Avenue, Southampton S01 OJX Fax: ...... +20 2 303 6416 Tel:...... +44 (0)1703 510 210 SURINAM Wärtsilä NSD Saudi Arabia Ltd. Fax:...... +44 (0)1703 510 310 FRENCH POLYNESIA Rudisa International Industrial City, Phase 4, P.O.Box 2132 Galileistraat 524, Mon Plaisir Wärtsilä NSD UK Ltd. Jeddah 21451 Poly-Diesel P.O.Box 1648, Paramaribo Tel:...... +966 2 637 6470, 6884 Unit 3 Jubilee Court, Hillington Industrial P.O.Box 9037, Papeete, Tahiti Tel: ...... +597 453431/453772 Fax: ...... +966 2 637 6482 Estate, Glasgow G52 4LA Tel: ...... +689 505 270 Fax: ...... +597 455312 Tel:...... +44 (0)141 810 4321 Fax: ...... +689 427 827 SENEGAL Fax:...... +44 (0)141 883 3846 THAILAND Wartsila NSD West Africa S.A. Wärtsilä NSD UK Ltd. GABON International Measuring Instruments B.P.21.861 Dakar-Ponty Units 30-31 North Field Industrial Estate Societe Gabonaise Corp. Ltd. Km 4,5 Bd du Centenaire de la North Field Lane, Brixham De Mecaniques S.A 9/345 Phaholyotin Road, Bangkhen Commune de Dakar South Devon TQ5 8UA P.O.Box 607, Port Gentil Bangkok 10220 Tel: ...... +221 8 32 10 26 Tel:...... +44 (0)1803 883 830 Tel ...... +241 752 250 Tel: ...... +66-2552 5228, 552 8262 Fax: ...... +221 8 32 10 25 Fax:...... +44 (0)1803 882 658 Tlx:...... 8231 sgm Fax:...... +66-2552 8403

Energy News - 31 Product Programme

Power systems

Power Master isa1-400MWbaseload power Pure Energy isa1-60MWnatural gas plant. Its multifuel capability (most fuel oils and cogeneration power plant. It burns most natural gases), high efficiency, low emissions and proven gases with extremely low emissions and high long-term reliability have made it a strong leader in efficiency. Aesthetic appearance and adaptable, low its demanding market segment. noise emissions make it possible to locate the plant in the heart of the heat load, in the middle of a city or at industrial plant sites.

Plant net electrical efficiency (%) Total efficiency (%) Plant net electrical efficiency (%) Total efficiency (%) Main cooling method Cogeneration Cogeneration Prime mover Raw Cooling Radiator 8 bar Hot water 85/50°C and 8 bar water tower steam* steam* Prime 8 bar Hot water 90/50°C Wärtsilä 26 40.7 40.6 40.2 55 79 and Hot water 90/50°C mover steam* 8 bar steam* Wärtsilä 32 41.7 41.6 41.2 56 79 Wärtsilä 32DF** 41.4 41.3 39.9 60 86 Wärtsilä 220SG 39.5 60 85 85 Wärtsilä 38 42.6 42.5 42.1 57 80 Wärtsilä 28SG 41.1 62 89 90 Sulzer ZA40S 42.9 42.8 42.4 57 79 Wärtsilä 34SG 41.6 62 87 88 Wärtsilä 46 43.0 42.9 42.5 57 78 * The numbers are based on: 1) 5 engine plant configuration 2) ISO 3046/I with ± 0% tolerance Wärtsilä 64*** 51.2 51.0 – – – 3) HV losses excluded 4) *with economizer 5) 50 Hz. The numbers are based on: 1) 5 engine plant configuration 2) ISO 3046/I with ± 0% tolerance 3) HV losses excluded 4) *with economizer 5) fuel and lube oil heating with steam 6) ** running on gas 7)***combined cycle

Power Commodore is a 25 - 170 MW floating Power Manager load management plants cover an baseload power plant. Its movability, short delivery output range of1-30MW.They provide rapid time, competitive generation cost and proven starting and load pick-up, reliable operation, long-term reliability have made it the natural choice expandability through modularity and competitive in its market segment. energy cost for many types of varying load needs, both industrial and utility.

Plant net electrical efficiency (%) Total efficiency (%) Plant net electrical efficiency (%) Total efficiency (%) Cogeneration Cogeneration Prime mover 8 bar steam* Hot water Prime 8 bar 85/40°C and Hot water Wärtsilä 32 41.7 56 mover steam* 8 bar steam* 90/50°C Wärtsilä 38 42.6 57 Wärtsilä 200 39.1 58 75 75 Wärtsilä 46 43.0 57 The numbers are based on: 1) 5 engine plant configuration 2) ISO 3046/I with ± 0% tolerance 3) HV The numbers are based on: 1) 5 engine plant configuration 2) ISO 3046/I with ± 0% tolerance 3) HV losses excluded 4) *with economizer 5) 50 Hz. losses excluded 4) *with economizer 5) fuel and lube oil heating with steam

Gas Manager contains a variety of compression solutions for the natural gas industry. Our solution for applications like gas gathering, underground storage, gas processing and pipeline transmission is a combination of Wärtsilä gas engines and Ariel reciprocating compressors, both considered the most modern and reliable technology on the market.

Performance optimizers

Energy Optimizer is total power plant operations and Energy Partner is a power plant service concept maintenance management. Available for all Wärtsilä available for all Wärtsilä NSD power plants. It covers NSD power plants; it covers all aspects of plant field and workshop services, parts, technical operations – administrative, financial, human support, training and plant operation support. The resources and technical – and relieves the owner of overall aim of all these activities is to minimize costs the detailed and time consuming tasks associated and risk of interruptions by keeping the installation in with these issues. good condition.