Wednesday, December 01, 2010

Adana Tufanbeyli 3x150 MWe CFB TPP

Dear Energy Professional, Dear Colleagues,
SK Construction Company of South Korea has received a new turnkey construction contract at about 953 million U.S. dollars (approximately 1.1 trillion SouthKorean Won), to build  450 MWE total electricity generating capacity thermal power plant  firing local indigenous coal.

Scope will cover 3 each 150 MWe thermal power plant units in CFB (circulating fluid  bed)  technology by Yantai Hyundai Moon Heavy Industry Co. Ltd., China plant, each unit coupled with individual Steam turbine by Skoda/Doosan?. 

Construction will start in March 2011. Total Project duration is 47 months. The first unit is expected to be in operation in year 2015 following the other units in completion in 2 month intervals.  
The new 450 MWe coal fired thermal power plant investment in Adana Tufanbeyli was delayed for 3 years due to prevailing economic crisis.
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. 
Plant operation will be in compliance with the latest EU environmental rules and regulations.  100 hectares of land expropriation is already completed. Investment will be in build-operate model.
The investment will create employment for approximately 400+ people during operation.
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 7.8. Coal price estimated to be 10.53 US Dollars per ton or 1.80 USD/ MMBTU as of year 2005.
Project Risk is in the coal. Available local coal is too difficult to fire in the steam boiler therefore special care in basic design is necessary. CFB design will be enforced in lieu of conventional pulverized coal firing.
It is our sincere feeling that 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.
We understand that project financing is secured by the investor partners.
Payback period is expected to be less than 3 years.
Project financing is difficult in Turkey, especially at this time of global financial turmoil. Public institutions have limited or almost no capability. 
Turkey will need more local private financing, and local contracting, local engineering. Private investors deserve all our support to complete those new power plant investments. 
This article is to be presumed as an executive summary for an important local thermal power plant investment.  We will be too pleased to receive your comments.
Haluk Direskeneli, Ankara based Energy Analyst,


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