Monday, October 26, 2009

Some Thoughts on Adana Tufanbeyli Thermal Power Plant

Photo- Adana Tufanbeyli plant site- all greenfield

Dear Energy Professional, Dear Colleagues,

Your writer has received press releases from various resources for a new thermal power plant in Adana Tufanbeyli, in Turkey. The new 450 MWe coal fired thermal power plant investment in Adana Tufanbeyli is delayed for 3 years due to prevailing economic crisis. The project will be started in the second half of 2010 which was planned in year 2007 earlier.

The field related hydro geological studies were continuing in the field at Tufanbeyli. Plant is expected to consume 7.2 million tons of nearby local lignite per year, and will generate 3 billion kilowatt - hour of electric energy.

Investor Company officials advised that Negotiation work is in progress with companies of South Korea, Japan, for the key plant equipment supply and the construction. Plant operation will be in compliance with the latest EU environmental rules and regulations.

Local Holding company started planning to construct thermal power plant in 2006 in Adana Tufanbeyli with an investment budget of 480 million dollars. 100 hectares of land expropriation is already completed. Investment will be in build-operate model.

Coal mine has 214 million tons of proven lignite reserves in the region as reported in Turkish Coal Board reports. Available lignite coal has 1350 kcal per kg lower heating value with 44 percent humidity, 26 percent ash, 2.2 percent sulphur in average. Overburden / coal ratio is 8. Coal price is estimated to be 10.53 US Dollars per ton.

Available local coal is too difficult to fire in the steam boiler therefore special care in basic design is necessary. CFB and IGCC designs are recommended in lieu of conventional pulverized coal firing. Coal should be tested upfront.

This basic design activity cannot be left at the mercy of the foreign designers. There is no luxury to leave the design control to the vendor. Investor Company has to have basic design programs and local engineering capability to monitor completely all phases of the project execution from their home offices.

It is reported that investment will create employment for approximately 400 people in the region. Your writer is always happy to get such news on new energy investments in the local energy market, provided that

They are found/ registered/ accepted as environmentally friendly by the Ministry,
They have completed all obligations for Environmental Impact Assessment Reports,
They have received their license from the Local Regulatory Board,
They are designed by local engineering companies,
They are fabricated in the local fabrication plants,
They are installed by our local contractors,
They are commissioned and supervised by our local engineering power,
They are operated by our own staff,
and regularly checked by our own labor force in programmed maintenance.

We understand that project financing is secured by the investor partners, but loan allocation will be delayed to year 2010. Project financing is difficult in Turkey, especially at this time of global financial turmoil. Public institutions have limited or almost no capability.

The good side of that is Turkey will need more local private financing, and local contracting, local engineering. Your writer sincerely feels that our local private investors deserve all our support to complete those new power plant investments.

Above article is to be presumed a sort of executive summary for an important local thermal power plant investment free-of- charge, which would otherwise cost thousands of US dollars if that job would be given to an international engineering consultancy firm.

We will be too pleased to receive your comments.

Haluk Direskeneli, Ankara based Energy Analyst


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