Wärtsilä - Company Announcement

Wärtsilä supplies 225 MW power plant to the City of Denton, Texas, USA

Wärtsilä Corporation, Stock exchange release, 21 September 2016 at 10:00 AM EET

Wärtsilä supplies 225 MW power plant to the City of Denton, Texas, USA

Wärtsilä has signed a major contract to supply a 225 MW Smart Power Generation
plant to Denton Municipal Electric, the locally-owned utility for the City of
Denton, Texas. The plant will provide balancing power to the community, which is
moving towards a green, low emissions power system, aiming to have 70 % of its
energy produced from renewables by early 2019 as part of the Renewable Denton
plan.

Wärtsilä's scope of delivery is engineering and equipment (EEQ). The power plant
includes twelve 18-cylinder Wärtsilä 50SG engines operating on natural gas. The
value of the order is approximately EUR 100 million. The contract is included in
Wärtsilä's order book for the third quarter of 2016.  The equipment will be
delivered during the second half of 2017, and the plant is scheduled to begin
commercial operations in July 2018.

The City of Denton is a leader in integrating renewable energy to its power
system. On May 1, 2009, the city announced that it would receive more than 40%
of its energy from wind power - an achievement recognized by the American Public
Power Association and the U.S. Department of Energy, which awarded Denton
Municipal Electric its Wind Power Award in 2011.  In its quest to continue its
leadership position regarding the use of renewable energy, Denton intends to
have 70% of its electricity supply produced by wind and solar technologies by
2019.  Because of the fluctuations in the supply from renewables, Wärtsilä's
internal combustion engine technology will be used to balance the output. The
Wärtsilä solution will decrease the city's emissions by 78%, deliver reliable,
affordable electricity to its customers, and save hundreds of millions of
dollars in electricity production costs.

"Denton is changing the electricity generation paradigm by using renewables as
our baseload power, and then using highly efficient, quick-starting generation,
as needed, when the wind doesn't blow and the sun doesn't shine.  That's where
Wärtsilä and their flexible power generation comes in. The ability of the plant
to quickly start and stop is just one of the many reasons why we chose the
Wärtsilä technology over gas turbines. In addition to enabling our growth in
renewables, Wärtsilä can quickly deliver power generation with very low
emissions, which is something that the citizens of Denton highly value," says
Mike Grim, Executive Manager at Denton Municipal Electric.

"We are absolutely thrilled that Denton has chosen to rapidly increase its share
of renewables. Our flexible power plant technology is a perfect match for
renewables. We provide balancing power when wind and solar aren't available.
This contract also shows that our systematic market development approach in the
USA is working," says Dan Shelledy, Business Development Manager, Wärtsilä North
America.

The power plant, known as the Denton Energy Center, will be located in an
industrial park in Denton.  It will provide electricity for the city's
industrial, residential and commercial needs. When operational, this will be one
of the largest power plants in North America using Wärtsilä internal combustion
engines.

Link to image
Caption: Artist illustration of the coming plant, Source: Denton Municipal
Electric



For further information please contact:

Dan Shelledy
Business Development Manager
Wärtsilä North America
Tel. +1 281 233-6216
dan.shelledy@wartsila.com



Atte Palomäki
Executive Vice President, Communications & Branding
Wärtsilä Corporation
Tel. +358 10 709 5599
atte.palomaki@wartsila.com



For investor information, please contact:

Natalia Valtasaari
Director, Investor and Media Relations
Wärtsilä Corporation
Tel: +358 10 709 5637
natalia.valtasaari@wartsila.com



Wärtsilä Energy Solutions in brief
Wärtsilä Energy Solutions is a leading global supplier of ultra-flexible power
plants of up to 600 MW operating on various gaseous and liquid fuels. Our
portfolio includes unique solutions for baseload, peaking, reserve and load-
following power generation, as well as for balancing intermittent renewable
energy. Wärtsilä Energy Solutions also provides utility-scale solar PV power
plants, as well as LNG terminals and distribution systems. As of 2016, Wärtsilä
has 60 GW of installed power plant capacity in 176 countries around the world.
www.smartpowergeneration.com



Wärtsilä in brief
Wärtsilä is a global leader in advanced technologies and complete lifecycle
solutions for the marine and energy markets. By emphasising sustainable
innovation and total efficiency, Wärtsilä maximises the environmental and
economic performance of the vessels and power plants of its customers. In 2015,
Wärtsilä's net sales totalled EUR 5 billion with approximately 18,800 employees.
The company has operations in over 200 locations in more than 70 countries
around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com



The City of Denton
Denton is a principal city in the U.S. state of Texas and the county seat of
Denton County. The population of Denton is approximately 120,000 making it the
27th most populous city in Texas and the 11th-largest city in the Dallas-Fort
Worth metroplex.

The city is an award winning leader in the use of renewable energy and has
received the following awards:

  * 2011 Department of Energy Wind Power Award
  * American Public Power Association (APPA) Reliable Public Power Award
  * APPA Community Service Award
  * US Council of Mayors 2012 Mayors' Climate Protection Award
  * EPA Green Power Partner


http://www.renewabledenton.com           http://www.cityofdenton.com




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