Local energy solution Case: Keuruu CHP-plant Finland Jussi Orhanen, MW Power Tapio Ollila, Keuruun Lämpövoima Robert Deneault, Metso Power
MW Power is a Metso-company Metso is a global supplier of sustainable technology and services Our customers operate in the following industries: - Pulp and paper - Power generation - Mining - Construction - Oil and gas - Recycling About 29,000 employees in more than 50 countries 2010 net sales EUR 5.6 billion (7.1 billion US) Our shares are listed on NASDAQ OMX Helsinki Ltd. 2 Metso PPP General overview
3 Metso s offering for power generation customers
Local energy solution Keuruu combined heat and power plant, Finland
Keuruu Re-thinking the old energy supply system Keuruu town, central Finland - 10,500 inhabitants, 8,000 in town area - District heat network in town area at 40 GWh/y consumption with 20 MW peak load - 1 x 7 MW waste wood boiler from -60 s + four heavy oil boilers - Annual oil consumption 21 GWh Central town district heat network Military base 3 mile distance from town center - Heat network at 10 GWh/y consumption with 5 MW peak load - Annual oil consumption 2 GWh - Looking for outsourcing partner for heat supply Outdated scattered systems High oil consumption and rising oil prices Military base heat network Industry area 5
Keuruu Pre-feasibility phase 2007-2008 Feasibility, financing, subsidies? What options do we have? What local fuels do we have? Core team -Board of local energy company -Experienced consultant Heat only or combined heat and power? Effects to environment? What permits do we need? Effects to local economy? 6
Keuruu Pre-feasibility phase 2007-2008 Heat-only or combined heat and power? - Heat-only plant was equally profitable in the short run, but electricity production provides more revenue streams and potential for the future Fuel base? - Forest residues, early thinnings and stumps from local forests, agircultural crops, waste derived fuels and peat could be sourced locally, but none of them alone would be enough for the plant. - Multifuel boiler for local fuel cocktail was needed to secure fuel availability Scale of economy? - 3 mile pipeline between military base and town network appeared profitable and heat supply contract with military base was done in 2008 - CHP - plant is designed for base load, and existing oil boilers are used for peak loads. This setup gives best economic value. Environmental assessment? - Best available emission control systems to secure problem-free future 7
Keuruu Solution Biomass fired combined heat and power plant BFB boiler plant delivery, including Metso s environmental protection system Biomass & peat 15 MW district heating for the Keuruu area and 5 MW of electricity fo the grid 8
Keuruu Solution Biomass fired combined heat and power plant Boiler effect Electrical production District heat: Back pressure mode FG condensing Reduction mode 20 MW 5 MW 15 MW 2-4 MW 20 MW Yearly production Heat 65 GWh Electricity 10 GWh Boiler output Flow 54.6 klb/hr Pressure 890 psi(a) Temp. 932 F 9
Keuruu Solution Biomass fired combined heat and power plant Owner: Keuruun Lämpövoima Main supplier: MW Power - Boiler island - Balance of plant and turbine installation - Flue gas cleaning and condensing - Automation and electrification - Boiler building Other supply packages - Fuel storage - Steam turbine, Generator - Buildings, Foundations - Truck scale, Bridge crane 10
Keuruu - main process diagram Stack Flue gas dust fabric filter Flue gas condensing heat recovery Combustion air moisturizer Combustion air pre-heater Steam 932 F / 890 psi / 54.6 klb /hr turbine Generator - electric power 5 MW Boiler effect 20 MW Boiler District heat effect 15 MW water in/out 158/248 F District heat exchanger and auxiliary condensors Feed water tank
Keuruu CHP-plant Fuel storage Fuel storage inside Fuel sieving Boiler island 12
Keuruu CHP-plant Multifuel boiler HYBEX Bubbling fluidized bed boiler, multifuel design Hydro beam floor with open fluidizing grid Fuels: - Wood based fuels (bark, wood chips) and peat Together or separately 100% - Additional fuels: REF1 and REF2 Straw and reed canary grass Excellent coarse material removal efficiency Schematic side view, BFB boiler 13
Keuruu CHP-plant Flue gas cleaning and condensing scrubber Fabric filter was chosen for the most efficient dust removal from flue gas Metso delivery with technology license from Simatek Cylindrical filter modules Gentle and economical cleaning using low cleaning air pressure Efficient dust separation and acid Flue gas condensor was installed to recover heat from flue gas moisture to the district heat network. Increase over all efficiency and economy though additional heat sales 14
Keuruu CHP-plant Development milestones Three years from the first feasibilty study to commercial operation May 2007 Pre-feasibility study (Apr 2008) Jun 2008 Principal decision to built a plant by board of Keuruun Lämpövoima Dec 2008 Heat supply contract with military base Mar 2009 Plant supplier selection and supplies Jun 2009 Final investment decision Oct 2010 Plant in commercial operation 15
Keuruu - Investment summary CHP-plant and DH-network expansion - Total investment 27 M (35 MUSD) Power plant 24 M (31 MUSD) Civil works 2 M (2.6 MUSD) DH network expansion 1 M (1.3 MUSD) Investment subsidy from Finnish government 20% -5.4 M (7.02 MUSD) - Fuel price average 18 /MWh (23 USD/MWh) - Heat price average 60 /MWh (78 USD/MWh) - Electricity price avg. 50 /MWh (65 USD/MWh) - Staff 5 plant operators, 3 heat network operator ¼ -person for electricity and CO 2 trading statistics 16
Keuruu Local energy solution Local forest fuels replacing HFO - Forest residues, early thinnings and stumps form local suppliers Heat to local community - Town district heating network and military base heat grid connected Electricity to Nord Pool stock - Income from stock market - Own station power without distribution cost Local work - Operators - Maintenance work - Local fuel suppliers 17