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Press Release by
The technology group Wärtsilä will guarantee the performance and ensure the reliable operation of Emerging America S.A.'s 110 MW gas power plant in Chihuahua, Mexico. The ten-year operation and maintenance agreement with Emerging America, a private investment firm jointly owned by Mexican investors and The Abraaj Group from Dubai, was signed in October 2017. Under the agreement, Wärtsilä will optimise the performance of the power plant's 12 Wärtsilä 34SG engines running on natural gas, assuming full responsibility for operations and maintenance.
In November, Emerging America also granted Wärtsilä a notice to proceed with the plant construction under the Engineering, Procurement, and Construction (EPC) agreement, signed in December 2015. The construction works have started and the Chihuahua power plant is scheduled to be in commercial operation in 2019.
"We were looking for a long-term partner with experience in providing a turnkey EPC and the ability to take full responsibility for the operation and maintenance of our plant. The fact that Wärtsilä can provide both made them an ideal partner for us," says Daniel Gutiérrez, Chief Executive Officer of Emerging America.
Responding to a changing market
Mexico's Energy Reform has created a spot market for electricity demand and opened the energy sector for competition and private investment. Emerging America wanted to be well positioned in the highly competitive market. Wärtsilä's flexible and efficient Smart Power Generation solution offers fast ramp-up to full electric energy dispatch without compromising power plant efficiency, making it an ideal solution for Emerging America. Additionally, the Smart Power Generation optimises solar and wind power generation by providing the required balancing power generation for the Mexican energy market.
"To take advantage of the new and open electricity market in Mexico, we needed a new category of power plant capable of selling power at a competitive price to the system. Thanks to Wärtsilä's highly efficient technology, we are convinced that we will be able to achieve this," Gutiérrez says.
"Thanks to our guaranteed asset performance and Smart Power Generation solutions, we are able to provide Emerging America with a competitive edge under the Mexican Energy Reform. With our comprehensive lifecycle services, we can optimise the operations of the installation, which will be the first large scale gas engine power plant built specifically to serve the Mexican spot market. The fact that it will also be supplied by Wärtsilä under an EPC contract is very significant and a huge endorsement of Wärtsilä's technology," added Walter Reggente, Vice President, Americas, Wärtsilä Services.
"This will be the first large scale gas engine power plant built specifically to serve the Mexican spot market. The great flexibility of our technology is key to the success of this power plant, and we will ensure its productivity and efficiency throughout its lifecycle," commented Raúl Carral, Business Development Manager, Wärtsilä Energy Solutions.
From left to right around the table: Daniel Gutiérrez, Chief Executive Officer of Emerging America, Juan Pablo Mañón from Emerging America, Daniel Ceniceros from the Abraaj Group, Alejandro Medina from Emerging America and Raúl Carral, Wärtsilä's Business Development Manager, Mexico, Central America and the Caribbean.