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Arctic Power Plant Contracts for Wärtsilä

Posted on January 2, 2006

Wärtsilä Corporation has been awarded two significant orders for power plants in the Russian Arctic. The two contracts are worth close to EUR 30 million in total.

The first contract, awarded in October, is for a 32 MW power plant to generate electricity for the Varandey oil terminal in northwest Russia on the Pechora Sea, which is part of the Barents Sea. The oil terminal is used to ship crude oil from the Timan-Pechora oil fields to world markets. Wärtsilä is to supply four 18-cylinder Wärtsilä 32 generating sets which will use the same crude oil as fuel. This is a major contract from the Russian oil industry for Finland and the power plant design complies with strict safety and environmental protection requirements. The Varandey oil terminal and its power plant are being constructed by the Russian contractor Globalstroy-Engineering. The power plant will be fully operational in 2007.

The second contract, received in November, is for a 20 MW cogeneration plant producing electricity and heat for Bema Gold Corporation's Kupol Project, a high-grade gold and silver mine located in the Chukotka Autonomous Okrug, of Siberia. The plant will be equipped with four 12-cylinder Wärtsilä 32 diesel generating sets.

The Kupol Project is located in the continental climatic region of the subarctic climate belt where the average annual air temperature is close to -13°C. Average winter temperatures are -33.°C. The harsh conditions require the use of low-temperature resistant materials and systems specially designed for the arctic environment. The power plant will be fuelled with arctic-grade diesel oil which does not solidify at the prevailing low temperatures. Access is also difficult. The plant equipment will be shipped from Finland in summer 2006 to the East Siberian Sea port of Pevek and from there the equipment will be transported to Kupol using ice roads during the winter of 2006/2007. The plant is due to be fully operational in mid 2008.

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