Wärtsilä is to build a combined cycle power plant based on its FlexiCycle technology in Mexico that will use natural gas from the USA and sell energy to Guatemala.

The Finnish firm has been awarded an engineering, procurement and construction (EPC) contract by Energia del Caribe S.A. to build the 139 MW plant near Monterrey. It will be fuelled by natural gas originating from the USA while the electricity produced will be transmitted through Mexico for consumption in Guatemala.

The fact that natural gas provides cheaper and cleaner energy than other fossil fuels was a key factor that triggered the cross-border project between the three countries and enabled Energia del Caribe to seal the power purchase agreement (PPA) in Guatemala.

Presently, natural gas is not available for power generation in Guatemala.

The plant will consist of seven Wärtsilä 50SG gas engines and is scheduled to start operating in 2016.