Wartsila strikes deal on Sasol gas engine power plant in South Africa

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Helsinki, May 14, 2012 — Wartsila signed an operations and maintenance agreement with Sasol New Energy Holdings, a unit of Sasol, an integrated global energy and chemical company. The three-year agreement covers the company's gas engine power plant project in Sasolburg, South Africa.

By taking responsibility for operating and maintaining the power plant, Wartsila will ensure that it delivers the design output with maximum efficiency. Local employees of Sasol New Energy will also be trained as part of this agreement.

An O&M agreement is a comprehensive form of asset management. Typically, O&M agreements can be tailored to cover the entire scope of operational, management, and maintenance services, as well as providing the installation's performance guarantees.

The Sasol New Energy plant is expected to start producing electricity towards the end of 2012. It will be the largest power plant running exclusively on gas engines to be installed on the African continent, and because of its low emissions, will be an advance in developing Sasol's electricity business.

The plant has installed capacity of 180 MW and it will provide the energy needed to power the company's major new production facilities, such as the Sasol Wax Expansion and Ethylene Purification Unit 5 projects that are currently under construction.

Wartsila is an experienced operator, with a proven track record in operation and maintenance services. Globally, more than 16 GW of generating capacity in both marine and land based installations — more than 500 installations — is covered by Wartsila's O&M and other service agreements.

18 such agreements are in Africa. However, the Sasol agreement is Wartsila's first O&M agreement in the Republic of South Africa. Speaking at the signing ceremony, Henri Loubser, Managing Director, Sasol New Energy, said that this is a milestone achievement in developing Sasol's electricity business.

Sasol New Energy was created by the Sasol Group to leverage Sasol's key competitive advantage, which is developing and commercializing new technologies, and implementing and operating facilities based on these technologies at large scale. Sasol is exploring renewable and lower-carbon energy as well as carbon capture and storage solutions.

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