Spausdinti

Construction of heat production boiler plant in Elektrėnai

Spausdinti

The project for heat production boiler plant in Elektrėnai was initiated by Lietuvos Energijos Gamyba in order to produce heat energy at optimal price, independently of power generation, using the local renewable energy sources, while at the same time also reducing Lithuanian Power Plant (LPP) needs for public service fund. Scope of the project encompasses construction of Biofuel boiler plant and Steam boiler plant with all necessary equipment and auxiliary systems. 

The scope of works includes design, manufacturing, supply, erection, testing and commissioning of two bubbling fluidized bed water heating boilers with total thermal capacity of no less than 40 MW, including flue gas condensation (FGC) and electrostatic precipitators (ESP). It is planned that Biofuel boiler plant will be able to cover close to 90 % Elektrėnai town, UAB “Kietaviškių gausa“ greenhouses and LPP annual heat demand. 

Structure of heat and steam production:

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Fuel from renewable sources (wood chips, forest residues, sawdust) will be used in the new biofuel boiler plant.

The scope of the project also includes delivery and installation of 50 MW Steam production boilers. Construction of the Steam boiler plant is necessary in order to ensure reserve for the heat production capacities, as well as heat production during the peak load in winter and for activation of the LPP units.

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Timeline of works

Project was initiated in September, 2011. In 2012 the feasibility study was completed and tender documents prepared. In July 2012 international procurement of contract works was announced and the investments approved by the National Control Commission for Prices and Energy (NCC). Lietuvos Energijos Gamyba has already secured the supply of biofuel for the planned Biofuel boiler plant. Two companies will deliver 8 thousand t.o.e. of biofuel in 2014. The biofuel will be prepared from forest residues or wood chips.

The winner of international procurement of contract works was announced in May 2013. Biofuel boiler plant and Steam boiler plant to be constructed near the reserve power plant in Elektrėnai will be built by a group of associated suppliers – the consortium Filter and Vapor and Kauno energetikos remontas. The EPC contract for construction works was signed on June 17, 2013.

The design works started after the signing of the contract and lasted for half a year. The construction works are expected to begin at the beginning 2014 once permission for construction is obtained. During the design works, the necessary equipment will be ordered and it will be installed in the first quarter of 2014. It is envisaged that the contract winners will subcontract design, construction and boiler plant installation works to Lithuanian companies.

Heat production using the new biofuel boiler plants started in Q1 2015 and the contract works were finished in the mid of 2015 alongside the launch into operation of all equipment.

Advantages of the project

The following benefits are expected after boiler plants are put into operation:

• Price of heat supplied to the district heating networks of Elektrėnai town is expected to decrease and to be competitive in comparison with the heat price in other cities of Lithuania.

• Heat production reliability will increase and risk of production interruption will decrease.

• Environmental pollution will be reduced.

• Activity of region companies, related with preparation and supply of biofuel, will increase.

• Deviations of heat energy prices, affected by variation of natural gas price, will be reduced.

Heat and power production will be technologically separated in LPP after project implementation. This will reduce the need for public service funds, because power in the LPP will not be produced only because of the heat demand.

Steam production will allow to activate reserve capacity in LPP, as one of Lietuvos Energijos Gamyba activities is to ensure stand-by power reserve.  The capacity of the new combined cycle gas turbine unit shall be sufficient for power production demand. Therefore, other units in LPP will ensure demand of power reserve. They shall be activated by steam, supplied from the new Steam boiler plant. Therefore the project is important not only economically but also technologically – strategically. New boiler plant is necessary for power system security and reliability of power supply.

Innovation

Efficient state-of-the-art equipment has been installed, which reduces environmental pollution in the Biofuel boiler plant. Bubbling fluidized bed furnace technology was chosen for biofuel combustion in order to minimize emissions of pollutants, such as nitrogen oxides and carbon monoxide. According to the Large Combustion Plant Directive, currently chosen technology is considered state-of-the-art for biomass combustion. Dry-type electrostatic precipitators and flue gas condensing devices are being used for flue gas cleaning. Dry-type electrostatic precipitators can collect the fly ash and exhaust gas over a wide range of exhaust gas temperatures. Fully automated burners, that emit low quantities of NOx, are being used in Steam boilers. 

In order to maximize efficiency of biofuel boilers it is also flue gas condensation equipment has been installed. This equipment recovers low-grade energy from the flue gas via condensation of its water vapor.

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Investments

The Project has been financed by the loans of commercial banks and with the own resources of Lietuvos Energijos Gamyba. The Company has taken out a long-term loan. A loan of up to EUR 25 million to finance the contract works is expected to be provided by a group of associated partners – Nordea Bank Finland Plc and AB „DNB bankas“.

Investment project of Construction of heat energy capacities was partly funded by the European Union (EU) funds. The company applied for an EU grant in accordance with the measure "The use of renewable energy resources for energy production", and the project received a maximum the maximum grant of EUR 1,73 million.

Heat price calculation 

Lithuanian Power Plant, owned by Lietuvos Energijos Gamyba is an independent heat producer. In accordance with the laws regulating operation of district heating systems, in all cases, the heat is purchased from independent producers and it cannot be more expensive than comparable heat production costs of the heat supplier. Comparable heat production costs are calculated in accordance to “Purchase of heat from independent producers” regulation, which is approved by NCC. Actual investments became known after the winner of the contract works had been named. The price of contract works totalled EUR 25.04 million excluding VAT.

In order to find a solution suitable to all stakeholders Lietuvos Energijos Gamyba is working in close cooperation with municipality of Elektrėnai and with company UAB “Elektrėnų komunalinis ūkis“, that is operating the district heating network. In April 2013, Elektrėnai Municipality Council approved the construction of heat production capacities in Elektrėnai and heat price components proposed by the Company to be effective after the completion of the construction.

Taking into account the price of biofuel procurement (the procurement of biofuel was carried out in autumn of 2012) and the possibility to cut investments in installation of new heat production capacities meant for securing Elektrėnai heat energy needs down to EUR 8.68 million (due to a drop in Elektrėnai heat demand to 88 GWh), it is estimated that the price components of heat production for Elektrėnai Municipality may shrink to 3.8 EUR ct/kWh as of 2014.

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