Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2013)
20 slides from Wartsila Oyj Abp's investor day presentation, Nov 14, 2013
Slide 1: Power Plants' Focus on Gas
POWER PLANTS’ FOCUS ON GAS VESA RIIHIMÄKI President, Power Plants & Executive Vice President 1 © Wärtsilä 14 November 2013 VESA RIIHIMÄKI
Slide 2: Wind, solar and gas expected to grow strongly
Wind, solar and gas expected to grow strongly Solar PV Other 6% (Geothermal, CSP, Marine) 1% 2010 Bioenergy Wind Solar PV Other 2030 Wind 11% +453 GW 4% 1% (Geothermal Coal 1% , CSP, 26% Marine) +726 GW 0% Hydro Coal 32% Bioenergy 20% 2% 5,183 GW 8,588 GW Oil 3% Nuclear Hydro 8% 19% Oil +883 GW 8% G
Slide 3: Market for gas and liquid fuelled power plants
Market for gas and liquid fuelled power plants China Overall market size H1 2013 Top 15 countries USA GW Total 18.8 GW 140 Algeria 120 Malaysia Thailand 100 Kuwait 80 Japan Bangladesh 60 Egypt 40 Saudi Arabia Uruguay 20 Tunisia 0 Russia Australia H1 H2 UAE Includes all Wärtsilä power plants and gas
Slide 4: Market for gas and liquid fuelled power plants
Market for gas and liquid fuelled power plants 2012 H1 2013 Total market 75.4 GW Total market 18.8 GW 4.2% 3.8% 3.6% GE 8.0% Siemens Siemens 5.9% GE 4.8% 5.9% MHI MHI 34.6% 34.2% 6.4% Alstom Alstom 20.6% Wärtsilä Wärtsilä 12.8% Ansaldo Ansaldo 28.8% 26.1% Other GTs Other GTs Includes all Wärtsilä po
Slide 5: Market for liquid and gas engines, >5MW units
Market for liquid and gas engines, >5MW units MW Liquid, gas and dual-fuel MW Gas and dual-fuel 6 000 3000 5 000 2500 4 000 2000 3 000 1500 2 000 1000 1 000 500 0 0 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2011 2009 2010 2012 1999-2000 2000-2001 2001-
Slide 6: Power Plants strategy
Power Plants strategy • Maintain our leading position in HFO & dual-fuel power plants by enhancing our value proposition • Grow strongly in large utility gas power plants by capturing market share from combustion turbines • Grow in biofuel power plants by enabling a wide fuel range • Grow in special
Slide 7: Our customer segments
Our customer segments Utilities IPPs* Industrial Customers Entities supplying electricity to Financial investors investing in Industries such as mining, cement residential, commercial & industrial power plants and selling power to and oil & gas investing in captive end users utilities power plants.
Slide 8: Customer segments and fuel development
Customer segments and fuel development OI by customer segment NG and fuel oil share of OI 2009 - Q3/2013 MW 2009 - Q3/2013 Total EUR 6,462 million 2500 2000 24% 1500 37% 1000 500 39 % 0 2009 2010 2011 2012 2013 (Q3) Utilities IPP's Industrial Oil NG 8 © Wärtsilä 14 November 2013 VESA RIIHIMÄKI
Slide 9: Approach markets with Smart Power Generation
Approach markets with Smart Power Generation Energy efficiency Smart Power Generation Fuel Operational flexibility flexibility Smart Power Generation is a new concept which enables an existing power system to operate at its maximum efficiency by most effectively absorbing current and future system l
Slide 10: SPG supports most energy infrastructure types
SPG supports most energy infrastructure types NG as Liquid fuel Transition to NG as balancer for infrastructure NG (LNG mainstream renewable only infrastructure) energy energy 10 © Wärtsilä 14 November 2013 VESA RIIHIMÄKI
Slide 11: Transition to NG: Smart Power Generation meets LNG
Transition to NG: Smart Power Generation meets LNG Dual-fuel power plant Medium scale LNG terminal • Initial operation using HFO • Economic feasibility depends on scale 15-16$/MMBtu • larger terminals can receive larger • Provides base gas consumption for NG, tankers which lowers LNG price enabling
Slide 12: Transition to NG: Smart Power Generation meets LNG
Transition to NG: Smart Power Generation meets LNG • Wärtsilä Power Plants has developed capabilities to become an EPC supplier for medium scale LNG storage and regasification terminals • Wärtsilä can support and enable transition to gas infrastructure by providing a one stop shop for the investment
Slide 13: NG as balancer: changing business model
NG as balancer: changing business model Traditional world World of renewable energy • Fossil fuels provide baseload energy • Wind and solar provide increasing share of energy • Business model is based on • Business model for fossil fuels is to producing energy (MWh) and getting generate power when r
Slide 14: NG as balancer: a need for balancing in the EU
NG as balancer: a need for balancing in the EU • Large scale deployment of solar and wind truncates thermal plants to a narrow operating window • CCGT load factors are consistently going down, but the day vs. night gap is increasing, causing technology to operate at its most suboptimal conditions, l
Slide 15: NG as balancer: system changes are a reality
NG as balancer: system changes are a reality California: Solar generation is effectively turning the daily peak to a daily low Massive up/down ramps expected, up to 14GW in 4 hours in 2020 • Fossil generation more than doubled in 4 hours • 14GW is the approximate peak load of Finland Market opportun
Slide 16: Wärtsilä is the leader in Smart Power Generation
Wärtsilä is the leader in Smart Power Generation TECHNOLOGY SOLUTIONS REFERENCES 16 © Wärtsilä 14 November 2013 VESA RIIHIMÄKI
Slide 17: Wärtsilä Power Plants as EPC supplier
Wärtsilä Power Plants as EPC supplier • Wärtsilä Power Plants has extensive Scope Emission Control experience in turnkey power Options for Full HRC / CC solutions since early 90’s all scopes Substation/El. Interconnection Admin and Service buildings • Approximately 25% of the projects Site Preparati
Slide 18: Quisqueya I&II 430MW, dual-fuel flexicycle
Quisqueya I&II 430MW, dual-fuel flexicycle November 2011 February 2012 May 2012 August 2012 November 2012 March 2013 Quisqueya I&II, Dominican Republic 430MW / dual-fuel flexicycle Power supply to a gold mine and peaking power to the utility Wärtsilä EPC delivery 18 © Wärtsilä 14 November 2013 VESA
Slide 19: Quisqueya I&II 430MW, dual-fuel flexicycle
Quisqueya I&II 430MW, dual-fuel flexicycle September 2013 19 © Wärtsilä 14 November 2013 VESA RIIHIMÄKI
Slide 20: Wärtsilä
re, WARTSILA