Wednesday, November 11, 2009

Isken Sugözü 1320 MWe Thermal Power Plant

Dear Energy Professional, Dear Colleagues,

On 7th November 2009 Saturday morning, your writer visited Adana Sugözü ISKEN Thermal power plant premises together with Energy Working Group members of Chamber of Turkish Mechanical Engineers. We had the opportunity to listen/ learn/ visualize important technical and commercial presentations of the host company.

The Plant is first-of its kind imported coal fired power plant which is built and operated by private sector in Turkey since 2003. It has operated in compliance with international technical standards and the competitiveness of the plant is secured by efficient design (>40%) and high availability (>8000 hours per year).

Thus, it provides reliable and efficient power to the grid (9 billion kWh electrical energy per year) in addition to supplying reliable, efficient and competitive power to the national grid, with high concern over environmental protection. Here are the milestones of the plant,

- 1320- megawatt (2 X 660) installed capacity with Siemens Steam Turbine Generator,
- 524.3 kg/s HP Superheated steam generation at 185 bar/541 Celsius in each of total two Benson type Once through forced circulation 3-pressure steam generators,
- Hard coal with high quality as a fuel from South Africa and Columbia under long term purchase agreements (6000 or more kcal per kg LHV)
- USD 1,5 billion foreign direct investment with Contribution to the regional economy
- Reliable and environmental friendly energy program as well as Environmental monitoring and management program

We then passed nearby recultivated fields with new trees planted on. It was an extraordinary application of recultivation on already depleted fields.

Thermal Power plant is owned by German Evonik Steag (51%) and Turkish Oyak group (49%). It is a brand new plant, clean, fully equipped with sufficient capacity flue gas desulphurization systems, with high capacity flue gas dust collecting electrostatic precipitators.

Under the Turkish Environmental laws and regulations, Turkish Power Plants on the Mediterranean shores are to be cooled with only 1 to 3 degree Celsius seawater temperature increase. We are advised that imported coal firing SUGOZU 1320 -megawatt Thermal Power plant in Yumurtalik meets that environmental condition. They have deep sea return water injection from 4 different points with a temperature increase in a small range not to exceed 0.5 degree Celsius temperature difference.

We have been advised that there is a new ongoing investment under a different commercial identity for a new 600 –megawatt electricity output capacity imported coal firing thermal power investment next to the existing plant. The new plant is expected to be with higher technology design with latest additions for higher efficiency (>45%) and availability, an almost close replica of Evonik Steag plant design in Duisburg Germany. New plant is estimated to cost over 1 billion US Dollars in direct investment. However later in time, we have been advised that new contract is given to CMEC of China turnkey basis. This is a risk.

New plant soil excavation works were witnessed at site. Site construction is expected to start in year 2011. There is high concern in the local engineering societies for expectation of any employment of local engineering and manpower.

Those companies who are ignorant of local workforce employment expectations, and neglecting local engineering contribution, will surely be deserving the highest local resistance in legal platforms. Hence they will surely be having to much headache during project execution.

We are also told that the company is also planning wind and solar investments in the region for new future. We are pleased to visualize the application and operation of such a big investment on our shores, and wish to have similar state-of-art technologies with high concern over nearby environment, and preferably firing our own local lignite.

Lastly, through various sources, we are also advised that foreign partner is selling some of her energy plants/industrial plants/ companies, so that in future block sale of parent company shares in Isken TPP may come to consideration.

Once again we would like to congratulate the Plant Management and the Creditors who put money which made the project realized, and to the engineers/ employees who make the plant to run smoothly, efficiently at maximum availability, high efficiency, with high concern over nearby environment. Your comments are always welcome.
--, Ankara based Energy Analyst


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