New Thermal Power Plant Investment in Denizli

Dear Energy Professional, Dear Colleagues,

Your writer is happy to learn the announcement of new thermal power plant investment in Denizli District near KAKLIK village.

German E.ON together with a local reputable Turkish local partner are planning to install a new thermal power plant to generate 800 MWe electricity.

Prior to their EIA application, they will be organising "Public Information Meeting" on 17th June 2008. Details are in their web site. www.eonturcasdenizlienerjisantrali.com

Your writer feels happy to get such news on new energy investments in our local energy market, provided that they are environmentally friendly, they have completed all obligations for Environmental Impact Assessment Reports, they receive their license from the Local Regulatory Board, design by local engineering companies as much as possible, fabricate in the local fabrication plants as much as possible, install by our local contractors, commissioned and supervised by our local engineering power, operated by our own staff, and regularly checked by our own Labor force in programmed maintenance.

Your writer sincerely feels that energy investors deserve all our support to complete those power plant investments. They deserve since they risk their own property in order to get proper "Corporate Financing" at reasonable interest rates, and payment terms.

Hence your writer also tries to avoid them to make any technical mistakes in their power plant design, furthermore to avoid incorrect selection of the necessary equipment, wishes them to operate the plant for many years, to generate electricity which will push our economic prosperity.

After reading the Project Information Brochures, we feel that they are prepared quite good. There are not much project details, only already known details are disclosed. We learn that the output capacity is 800 MWe. They will install air cooled cooling system. That means they will not use much underground water. That is good for nearby ongoing agricultural activities. As a matter of fact, water is scarce at the neighbouring site.

We do not know details of selected gas turbine, steam turbine, HRSG, cooling system, heat balance diagrams, fabrication, construction, site installation contractors, whether they are local or foreign, details of budget figures for each item, the timetable for project execution.

It is your writer's humble feeling that we should help and warn the investor not to repeat negative past examples in Antalya, Amasra, Yatagan, Afsin.

Foreign investor should be comfortable here that we are ready to help them. We should warn that they should not involve any corruption for speeding the public procedures, getting licenses, getting EIA approvals.

Local investor should feel comfortable that we shall be waring them in proper design, sourcing fabrication, site installation, logistics, public approvals.

We all expect that these energy investments will bring prosperity, employment and peace to the site. Maximised manpower, maximised engineering/ fabrication/ site installation capabilities will be employed.



Photo. Siemens SGT5-4000F CGG reference

After brief review of the project, we feel that we need answers to the following question,

- We need to learn the origins of the basic equipment, gas turbine, steam turbine, heat recovery steam generator, condenser, cooling tower. Since the foreign investor is from Germany, we may presume that the gas turbine will be of Siemens 2 each SGT5
-4000F. Similarly steam Turbine will also be purchased from Siemens. What are the budget figures? When are they going to be delivered to site? How are they transported from which sea port?

- Since there is space limitations, the heat recovery steam generator will be of vertical gas pass, forced circulation type with supplementary firing. Who will be designing (CMI- Belgium?), who will be the fabricator (Cimtas, Gulermak) , who will be the construction company for site installation?

- It is our understanding that they have not applied yet to EIA certification nor to the Local regulatory board for licensing. There should not be any deviation of the information they will be declaring in the local information meeting and the information they will be furnishing to the public administrations.

- Since the selected site is 545 meters above sea level, they need to have supplementary firing in their heat recovery steam generators in order to reach 800 MWe electricity generation output. We would be too pleased to learn the details of their burners, burner management systems, emission controls.

- We shall be too pleased to learn where they will be purchasing the cooling towers, air cooling system design and equipment. As we all know similar size thermal power in Baymina Temelli project, they could not install air cooling systems since the towers would be in the airplane landing route to Murted airforce airport. Investors are to check if the plant air cooled cooling towers are free from airplane landing routes of Denizli Cardak International Airport as well as emergency landing site at nearby highway.

- We need to know who will be the site constructor, what is the budget figure? They should be local companies. Local labours will be at the site.

- We need to know the project period, the importance milestones, we expect that 28-30 months could be a reasonable period.

- We need to know who will be making and paying the new 380 kV transmission and new natural gas incoming pipeline to the site.

- We need to know when the major equipment land transportation will be made, do we have sufficient roads for that transportation, who will be making the road reinforcement to enable the transportation?

- Do they have long term natural gas purchase agreement with respective organisations, do they have long term electricity sale agreements?

- Do they consider any capacity extension in the long term in 10-20 years time? Do they have enough space/ land for that extension??

- It is known that Siemens SGT5-4000F gas turbine is also suitable for IGCC. Do investors consider any IGCC application in future by gasification nearby Aydin, Yatagan indigenous lignite mines to avoid any energy supply risk?

- Generally we observe that after plant construction and generation of income in 3-5 years, the foreign party decides to sell her shares to the local partner and leave the project/ country. That was the case in Enron in Trakya, selling all her shares to her local partner, Steag in Sugozu. How is the long term policy of the foreign party in this case?

- We will be too pleased to learn if the local party will be thinking to create local engineering department to carry out necessary basic engineering in the long term.

- Could we Chamber of mechanical Engineers, organise annual technical tours for our members and ME students to the site in future?



Photo. Enka Gebze Adapazari CCPP with air cooling Cooling towers

Your writer hopes all the best, and the success to the investors in their new venture

New Thermal Power Plant Investment in Antalya

Dear Energy Professional, Dear Colleagues,

Your writer receives growing number of news alerts from Antalya summer resort for new energy investment of a local investor for a Combined cycle power plant with 827.8 MWe power generation at 35 km north of Antalya city center just after Organized industrial zone, on the Highway between Selimiye and Kovanlik villages.

Your writer is always happy to get such news on new energy investments in the local energy market, provided that they are environmentally friendly, they have completed all obligations for Environmental Impact Assessment Reports, received their license from the Local Regulatory Board, designed by local engineering companies, fabricated in the local fabrication plants, installed by our local contractors, commissioned and supervised by our local engineering power, operated by our own staff, and regularly checked by our own labor force in programmed maintenance.

Since Turkey paid huge amount of compensation after arbitration practice in the international platforms in the past, we all know that there will be no more arbitration clause in the new tenders. New tenders will not cover international arbitration, since Turkish public institutes have faced difficulty in finding and paying competent lawyers within public purchasing procedures, and the available public lawyers in the board could not handle that international arbitration activity. In short we shall not see any international arbitration in the new tenders, hence it will reduce our bankability in project financing.

The good side of that is Turkey will need local financing, and local contracting, local engineering.

Your writer sincerely feels that our local investors deserve all our support to complete those new power plant investments. They deserve since they risk their own property in order to get proper "Corporate Financing" at reasonable interest rates, and payment terms.

Hence your writer also tries to avoid them to make any technical mistakes in their power plant basic design, furthermore to warn them not to make incorrect selection of the necessary equipment, wishes them to operate the plant for many years, to generate electricity which will push our economic prosperity.



We understand that they considered first simple cycle combination comprising 2 each Siemens SGT5-4000F for application to EIA.

Initial location was next to existing Organized Industrial Zone. Since they were supposed to pay 3% over their naturalgas price to OIZ administration, they decided to avoid that surcharge and replaced the location, and moved to more north direction, also changed their initial design from simple cycle to combined cycle.

Simple cycle operation needs almost no or limited small amount of water in the operation, so that is completely in compliance with no harm to nearby environment, nor to the ongoing agricultural activities. However simple cycle operation at high cost of naturalgas is not feasible, we all know that.



It is our humble feeling that investor has used minimum or no local engineering, nor any design software, nor any third party consultancy.

We understand that they agreed all they have received from the OEM supplier, it is like almost complete surrender to the supplier, with no or limited evaluation within their limited engineering capability.

However their license is based on 827.8 MWe electricity generating Combined cycle power plant and that project activity is almost 0.7% complete as of January 2008 as stated in the regulatory board web site.

It is too difficult for your humble writer to understand that mismatch. We now understand that this plant is not a simple cycle but a combined cycle power plant, designed to consume huge amount of underground water, which is too vital for the nearby agricultural fields. That is a great adverse impact to the environment.



If you design your combined cycle power plant cooling system to water cooling, which quite cheap at initial cost, then you need huge amount of water in years to come.

Investors are to be too cleaver not to harm the environment. In this case, your writer in his humble capacity, would be advising the investor to use air-cooling systems, although they are a bid more expensive in upfront investment cost, but in the long run you do not harm the agricultural fields nearby, and live in peace with your neighboring villagers.



There is only one restriction to be checked. Air cooled cooling towers should not interfere with airplane landing routes. We know that airplanes land from seaside at Antalya International airport, and take off route is quite far from plant site. Anyhow it should be double checked if selection is appropriate.

I hope that above explanation is sufficient in nature at this time, and I will be too pleased to receive your comments

PowerGen Europe 2008

Dear Energy Professional, Dear Colleagues,

On 3-4-5 June 2008, the main European energy event was in Milan Italy for Powergen Europe 2008 exhibition and conference. The Powergen conferences are very important in energy sector. If you participate to Powergen Europe Conference, you have to purchase an international ticket to fly to an European city- Milan, Italy this year, make hotel reservation (most of the time fair price which is double the normal price, in Milan it is quite expensive) and handle your living and traveling expenses. You have to spend almost one week. That means you are away from your daily work load and your ongoing projects, customers. That is a real dedication. That needs time, money, effort. But on the other hand, you meet with the key players of the international market. Only real players, only serious organizations, and individuals can do/ participate to the fair. So let us see who these real serious players of our energy sector are.



Here are the Turkish participants and major key players of our energy market in the PowerGen Europe 2008 Milan conference

Aalborg Engineering Istanbul/Aalborg
ABB Elektrik Sanayi AS Istanbul
Alstom, France/ Turkey
AnsaldoBreda Istanbul
Armagan Muhendislik Istanbul
ASKO Limited, Istanbul/ London
Austrian Energy & Environment, Ankara/ Vienna
BGM Engineering, Istanbul
Bis Enerji Bursa
Black & Veatch USA/ Turkey
Borusan Enerji, Istanbul
Calik Enerji Ankara
CMI- Belgium/ Turkey
Enpro Engineering, Ankara
ENPRODE Engineering & Consulting, Istanbul
Foster Wheeler, Ankara/ Istanbul
Gama Power Systems, Ankara
GE Energy, USA / UK/ Turkey
GSD Istanbul
Innovative Steam Technologies, Canada/Turkey
Koc Holding/ Entek, Istanbul
Lotus Enerji, Ankara
MEGA Enerji, Istanbul
NaturGaz/ Kolin, Ankara
NEM, Holland/ Turkey
Nooter/ Ericson USA/ Turkey
Nurol Enerji Ankara
Pratt Whitney USA / Turkey
SEGU Engineering & Contracting, Izmir
SETAS Enerji, Ankara
Siemens, Germany/ Turkey
Thermoflow Thermal Power Plants Design Software USA/ Turkey
TUBITAK MAM, Marmara Research Center, Gebze
TurboMach, Istanbul/ Switzerland
VESTAS Wind Energy Istanbul/ Denmark
Vogt Power Systems, USA/ Turkey
Wartsila Engines, Finland/ Turkey
ZORLU Enerji, Istanbul

There may be some more missing names but generally the interested key players are as listed above. We hope that there will be more participation next year in Koln, Germany on 26-27-28 May 2009.

It is your writer's sincere feeling that one day Powergen Europe should be organized in Istanbul close to Ataturk International Airport, similarly PowerGen Asia should also be organized in Asia Minor section of Istanbul close to Sabiha Gokcen International Airport maybe in F1 racing course.

Thank you and best regards