Siemens will build a combined cycle power plant as a turnkey project at the Marl Chemical Park in North Rhine-Westphalia, Germany. The plant will supply district heat for about 2,000 homes in the future, and will operate at 90 per cent fuel efficiency.
The order for the industrial power plant was placed by specialty chemical group Evonik Industries, and will consist of two units, each with a 90 MW capacity and ability to process steam for the chemical park.
Siemens will construct the two identical power plant units, as well as one industrial gas turbine, and one industrial steam turbine for each unit. Besides providing the generators, auxiliary systems, and the control system, Siemens will also carry out preventive maintenance work on the turbines for a period of 15 years under a long-term service agreement. This agreement also covers remote diagnostic services for daily plant monitoring and monthly analyses of the operating data. These digital services will ensure high plant availability.
Each power plant unit can produce electricity but also up to 220 metric tons of process steam per hour. The plant’s high flexibility enables it to compensate for the fluctuating infeed of renewable energy into the power grid, supporting the energy transition in Germany.
This combined cycle power plant project will use heat recovery steam generators and catalysts to allow the system to operate on natural gas, as well as re-gasified liquefied natural gas (LNG), and various other gases, such as residual gas from production processes. The environmentally friendly electricity generation and steam processing will see CO2 emissions cut by one million metric tons per year.
Construction is scheduled to begin later in 2019, and the power plant is expected to go into operation in 2022.
“In building this power plant, whose technical and commercial concept was worked out jointly between Siemens and Evonik, we’re helping Evonik significantly cut its CO2 emissions,” said Michael Becker, CFO of Siemens Gas and Power. “In addition, the state-of-the-art plant will ensure a reliable supply of electricity and process steam for the chemical park. The ability to use various gases as fuel is another benefit and further increases the plant’s economic feasibility.”
“In deciding to build the new power plant, we’re ending our coal-based production of electricity and steam in Marl after more than 80 years, and cutting the direct annual greenhouse gas emissions of our plants by nearly one fifth worldwide,” said Thomas Wessel, chief human resources officer at Evonik. “We are pleased to have Siemens at our side, a reliable partner who is helping us to achieve our ambitious climate goals.”
“Siemens Financial Services’ structuring expertise and experience in the energy sector for years enabled us to offer a financing solution tailored to the customer’s needs,” said Veronika Bienert, CFO of Siemens Financial Services GmbH. “This made it possible to implement the project in close cooperation with Siemens Gas and Power, which is providing the technology and service activities.”
Siemens Financial Services (SFS), Siemens’ financing arm, has developed a leasing financing solution specifically for Evonik in collaboration with Siemens Gas and Power. Together with the KfW IPEX Bank and LBBW, SFS will handle refinancing of the leasing agreement. The project volume is in the lower triple-digit million euro range.