Cogeneration CHP, District Energy, Europe

Cogeneration scheme for steel plant in Macedonia

A new gas-fuelled CHP project, the first in the country to be certified for international carbon credit financing, has been opened to serve steel manufacturing facilities in Skopje, the capital city of Macedonia. The plant, powered by 10 gas engines from GE Jenbacher, will operate under the international Clean Development Mechanism (CDM), which was established under the Kyoto Protocol to provide global financial support for alternative energy projects that reduce carbon dioxide emissions in developing economies.

The plant has an electrical output of 30.4 MW and a 13.6 MW thermal output as hot water, with an additional 19.5 t/h of saturated low pressure steam, generating a total of 56.9 MW. Thanks to the combined production of power and heat, the plant’s overall efficiency is 80.5%, says GE Jenbacher.

The opening of the power plant is part of the Balkan nation’s initiative to install more efficient industrial and district heating facilities that will help improve regional energy reliability and reduce greenhouse gas emissions. The plant’s power output will support the operation of local steel factories in the Zelezara Skopje industrial park.

The CHP plant was built by Energetski Institut. GE supplied 10 Jenbacher 620 type engines with lean-mixture combustion and engine control systems, as well five steam generators and spare parts. The Skopje project was developed by Camco International, a UK-based international carbon credit financial services company. Austrian Trade at the Austrian Federal Economic Chamber, Austria’s official foreign trade promotion organization, also provided financial support.

According to the customer, Skopje’s new CHP plant is expected to earn about 185,000 Certified Emission Reduction (CER) credits a year, which corresponds to a projected reduction of the equivalent of 185,000 tonnes of carbon dioxide. Selling the carbon credits will help the operator ensure the financial viability of the project.

While all the power and the steam gained from the power plant’s waste heat will be used for steel production activities at the site, any excess thermal power during the summer months will be fed into the district heating grid for the city of Skopje.