CAYIRHAN TPP- FGD 1992 Site Report

Dear Colleagues

I hereby would like to present a past site report on opening ceremony of Cayirhan Power Plant, as follows.

Flue Gas Desulphurization

Friday, 4th September 1992, was the official opening of the Cayirhan Power Station
Flue Gas Desulphurization Plant, the first such installation in Turkey, the first of
many. This was a big event, with speeches by the Minister of Energy; the General Manager of TEK; Chairman of Gama; and the leader of the consortium, the GM of Kloeckner of Germany. Radio, TV, and the press covered the event.

We should not underemphasize the importance of TEK's FGD program in Turkey. It needs to be in full implementation for Turkey to meet European emission standards, which is one of the requirements for full membership of the EC, a clear and priority goal of the Turkish government.

TURKISH ELECTRICITY AUTHORITY
A New Step in Clean Energy Production
2x150 MWe
Cayirhan Thermal Power Station
Flue Gas Desulphurization System

Love for one's country can be measured by one's service to it.
Kemal Ataturk

INTRODUCTION

To meet our country's increasing energy demands, the Authority's power plants fire poor quality lignite of low calorific value, with high ash and high moisture content, which cannot be used elsewhere. This operation introduces potential environmental hazards which have to be avoided. Under the current strict environmental regulations the Authority considers this their major problem to solve © avoiding environmental pollution while producing electricity from economic fuel sources. Due to the high sulphur content of the fuel from its mine, Cayirhan Power Plant was selected for the installation of the first Flue Gas Desulphurization System.

Since this installation is an integral part of a utility plant, and is the first of its kind in Turkey to apply desulphurization techniques to flue gases, the
Cayirhan FGD system is regarded by the Authority as a major step in the application of these measures for the control of environmental pollution.

The successful initiation of this FGD plant emphasises the validity of this solution of a technological process applied for a cleaner environment. Even the additional costs of such a solution still allow for economical energy production.

Starting at this point, the Authority makes a long-term commitment to install
similar FGD systems in all other utility power stations.

GENERAL INFORMATION ON THE PROJECT

This FGD facility, integrated with the 2x150 Mw capacity Cayirhan Power
Plant, is 120 Km from Ankara city centre, and is located in Nallihan county near to Cayirhan town. The Cayirhan Power Station supplies 1,800,000,000 Kw-Hr. of electric power into the national grid each year, while utilizing poor-quality lignites from local mines.

The proximate analysis of the lignite which is supplied to Cayirhan Power
Station is as follows:

Average Lignite Proximate Analysis

Lower Heating Value 2,800 KCal/Kg
Ash 41.3 % (dry basis)
Moisture 27.5 %
Total Sulphur 4.65 %
Combustible Sulphur 4.15 %

Since the combustible sulphur is quite high at 4.15%, under full load of the two units of the power plant, 30 tons of SO2 is calculated to be discharged to the local environment each hour. This is the prime reason for building the FGD plant.

The contract for the FGD plant was signed on 3rd July 1987. It is on a turnkey basis, with a consortium formed by Bischoff-Kloecner- Lentjes of Germany, and Gama of Turkey. The contractual lump sum price was 71,638,715 Dm, plus 4,387,482,000TL. By having the credit agreements to cover the project effective as of January 1988, the subject installation has been in operation since November 1991 in parallel with the utility plant.

The financing of the FGD plant is 100% from foreign sources, which also includes coverage for the local portion.

This site report is written as a record of past activities.