Wartsila Energy, the global leader in power generation technology, announced this Monday it will start the execution of two power generation projects in Mexico. The projects will supply Mexico’s state-owned electricity company, the Federal Electricity Commission (CFE), with 600 megawatts.
Firstly, the announcement comes right after the company announced its stock exchange release on November 10. The two projects will be multi-fuel power plants with a combined capacity of 600MW, as outlined above.
Moreover, CFE will deliver the projects to Wartsila on a full Engineering, Procurement, and Construction basis. According to the statement, the projects represent the largest generating capacity EPC contract ever awarded to Wartsila.
In addition, the projects comprise a 400MW facility, the Mexicali Oriente power plant, located in Mexico’s Baja California state; and the Parque Industrial plant, a 200 MW generating unit located in Sonora, Mexico.
Furthermore, the Mexicali Oriente plant will operate with 24 of Wartsila’s 50DF dual-fuel engines; while the Parque Industrial plant will feature 22 of the company’s 34DF dual-fuel engines. The engines will operate primarily on gas with the capability to use liquid fuel as a backup if required.
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Wartsila strengthening is presence in Mexico
On the other hand, the award of these projects provides a clear indication of the demand for power plants of these sizes and capabilities. Also, it positions the company further into a highly volatile market, especially under the administration of Mexican President Andres Manuel Lopez Obrador.
In fact, up to date, the company has delivered over 500 MW of power plant capacity in Mexico, of which 380 MW are currently covered by long-term service agreements.
Also, during the summer months, the plants will operate continuously, meeting the high electricity demand in the region; when temperatures can reach +50 °C. For the remainder of the year, they will be used to provide grid balancing service.
About the relevance of the projects, Sushil Purohit, President, Wartsila Energy, and Executive Vice President, said. “We are honored to have been awarded these valuable contracts, jointly biggest ever for our company. It speaks of the value created by our state-of-the-art flexible power generation solutions, which provide a unique combination of energy efficiency, and fuel and operational flexibility, supported by high reliability.”
Finally, Risto Paldanius, Vice President, Americas, commented. “The power plants will serve the local needs today, and they will adapt to future needs.” The plants would reach completion phases during 2022 and 2023.