GLOBAL ENERGY FUTURE ‘INSECURE AND ENVIRONMENTALLY UNSUSTAINABLE’ – IEA

‘The energy future we are facing today – based on projections of current trends – is dirty, insecure and expensive,’ said Executive Director of the International Energy Agency (IEA), Claude Mandil, speaking at the November launch of World Energy Outlook 2006, the annual flagship publication of the IEA. However, the Outlook also outlines how new government policies can create an alternative energy future that is clean, clever and competitive.

The IEA provides a baseline vision of how energy markets are likely to evolve without new government measures to alter underlying energy trends. According to the Outlook business-as-usual scenario, global primary energy demand will increase by 53% between now and 2030. Over 70% of this increase will come from developing countries, led by China and India. World oil demand will reach 116 million barrels/day in 2030. Global carbon dioxide emissions will increase by over 55% and China will overtake the US as the world’s biggest emitter of carbon dioxide before 2010.

But the IEA has also called for strong policy action to move the world onto a more sustainable energy path. The publication demonstrates that the energy future can be substantially improved if governments around the world implement the policies and measures they are currently considering. In this scenario, they calculate global energy demand to reduce by 10% in 2030. Global carbon dioxide emissions are reduced by 16%.

The IEA calls for cumulative investment in energy supply infrastructure of over US$20 trillion over 2005-2030 – substantially more than was previously estimated. Roughly half of all energy investment needed worldwide is in developing countries.

Improved efficiency of energy use would contribute most to the energy savings, but an increased use of nuclear power and renewables will also help reduce fossil fuel demand and emissions, says the IEA.

DEMAND FOR ENGINE GENSETS ‘OUTSTRIPPING SUPPLY’ – CATERPILLAR

Falling generation margins, and likely strategies to build new capacity, dominated much of the high-level discussion from the keynote platform at the Power-Gen International event, held in Orlando, Florida at the end of 2006. The consensus was that no particular technology or fuel would dominate within new capacity – instead, it will take moves an all fronts to keep the lights safe. However, neither CHP nor on-site renewable generation technology got much of a mention at the keynote session.

The exception was Caterpillar’s William Rohner, who was talking mainly about portable and stand-by plant. He said that demand for new reciprocating engine generators is outstripping supply around the world, at least for larger engines, the main driver being simply economic growth.

Industry orders have doubled in the last three years after recovering from a crash in the first couple of years of this millennium, said Rohner. But, as well as straight on-site gensets, he added that in the US CHP applications are becoming viable again as natural gas prices level out.

Caterpillar is also working coal mine methane projects around the world – one plant in Australia has operated for 10 years now, said Rohner, and the company is developing what will the world’s largest scheme, at 120 MW, in China. Biofuels were also becoming increasingly relevant for on-site power, he added, with the US engine manufacturers developing a standard specification for blends to be burned in their engines.

Rohner pointed to another growth area for on-site, high-quality power – the digital economy. With internet usage rates going through the roof – high-speed internet usage doubled in 2005 – both the number and size of data centres, many of which need their own power supply, are increasing. Yesterday’s 10-15 MW data centres are moving towards 30-60 MW now, said Rohner.

BP EXPANDS CHP PLANT AT TEXAS REFINERY

BP has begun construction of a new 250 MW steam turbine power generating plant at its Texas City refinery site, Texas, US. The US$100 million unit will be located next to the existing South Houston Green Power cogeneration facility and will boost the total electricity generating capacity at the Texas City refinery site to 1000 MW.

The new unit will result in some emissions reduction, and noise from steam-venting activity also will be reduced, says the company. Power not required for refining operations will be sold into the local markets, enhancing electrical supply availability in the region. The new plant is expected to come on stream in 2008.

Plant Manager and Business Unit Leader Colin Maclean said: ‘The new steam turbine generator will more fully utilize refinery fuel gas and boost operational flexibility by separating power production from steam production. It will improve efficiency, environmental performance and safety at the refinery. We’ll also see the de-bottlenecking of some 100 MW of energy from within the plant.’

BP’s Alternative Energy business will be responsible for the design, construction, installation, commissioning and start-up of the new steam generator plant, while BP’s trading and marketing organization will direct the surplus power capacity in the region’s power market.

The engineering design and procurement contract has been awarded to BE&K, a Texas contractor. The project will add at least three new positions to the 47 already employed at the South Houston Green Power cogeneration facility.

THAILAND UPGRADES ITS CLEAN ENERGY LAW FOR CHP

Thailand should have a significant upgrade of its ‘Very Small Power Producer’ (VSPP) regulations soon. The upgrade will both make it easier for clean electricity generation to connect to the grid, and will substantially expand the scope of the regulations to include larger-size generators and fossil-fuelled CHP generation.

If implemented successfully by Thai utilities, the new regulations could help lower pressure to develop hydropower projects in Burma, Thailand and Laos that would export power to feed Thailand’s growing demand for electricity.

Approved by Thai Cabinet in 2002, the original VSPP regulations were modelled on net metering laws in the US and other countries. The VSPP regulations allow customers with renewable energy generators to connect their generators to the grid and offset their consumption at retail rates – renewable energy can make the meter ‘spin backwards’. If a net surplus of electricity is generated, the VSPP regulations stipulate that Thai utilities must purchase this electricity at the same tariff that they purchase electricity from the state-owned generation company, EGAT. This rate, the bulk supply tariff is about 80% of the retail price for electricity.

Under the original VSPP regulations, generators were limited to 1 MW net export. Under the new regulations, the net export threshold will be expanded to 10 MW. Accompanying the expansion is a requirement that these generators meet Thai air quality standards.

Another change in the regulations is that the engineering requirements for interconnection have, in many cases, been reduced. This refers specifically to the requirements for safety equipment required by the utility to ensure that the generator will disconnect from the grid in the event of significant disturbances on the grid sufficiently quickly to avoid problems.

Finally, the new upgrades expand eligibility to CHP plants.

SPANISH STEEL PLANTS RUN ON ENERGY FROM WASTE GASES

A series of gas engines fuelled by steel industry waste gases in Spain recently reached a combined total of one million operating hours. A total of 26 Jenbacher gas engines from GE Energy and installed at three sites in northern Spain use either coke oven gas or LD-converter gas as fuel for on-site power generation.

By utilizing these ‘waste’ gases, the three sites have achieved carbon dioxide emission savings of about two million tonnes, compared to burning natural gas, since commissioning, according to GE.

Most steel production processes create large volumes of waste gases. Characterized by varying compositions as well as calorific values and combustion behaviour, the optimal use of these gases as fuel requires a special engine design, as provided here by GE’s Jenbacher gas engines.

The Profusa coke oven gas plant in Bilbao features a dozen Jenbacher generator sets which supply an average of about 6 MW of electricity, depending on the fuel composition. Meanwhile, two Jenbacher cogeneration units installed at the Industrial Química del Nalón Energía, S.A. coke factory in Sama de Langreo, in the province of Asturias, generate power and heat to support other local factory’s on-site energy needs. And, installed in 2004, a dozen engines form a unique cogeneration system that utilizes LD-converter waste gas created by the Aceralia steel factory in Avilés.

STERN REVIEW QUANTIFIES THE COST OF CLIMATE CHANGE

Climate change is the greatest market failure the world has seen and, while all countries will be affected, the poorest will suffer earliest and most. Meanwhile the effects of climate change could cost the equivalent of 20% of GDP per year or more, the cost of action to avoid the worst impacts can be limited to around 1% of global GDP each year. But we have to move fast. These are the main conclusions of the ‘Stern Review’, said to be the most comprehensive review ever carried out on the economics of climate change, published by the UK Government.

The Review was carried out by Sir Nicholas Stern, Head of the Government Economic Service and former Chief Economist at the World Bank.

Sir Nicholas said: ‘The conclusion of the Review is essentially optimistic. There is still time to avoid the worst impacts of climate change, if we act now and act internationally. Governments, businesses and individuals all need to work together to respond to the challenge. Strong, deliberate policy choices by governments are essential to motivate change. But the task is urgent. Delaying action, even by a decade or two, will take us into dangerous territory.

The Review finds that all countries will be affected by climate change, but it is the poorest countries that will suffer earliest and most. Unabated climate change risks raising average temperatures by over 5°C from pre-industrial levels – such changes would transform the physical geography of our planet, as well as the human geography. The Review calculates, using IPCC models established in 2001, that the dangers of unabated climate change would be equivalent to at least 5% of GDP each year. However, taking into account the most recent scientific evidence (for example, of the risks that greenhouse gases will be released naturally as the permafrost melts) and approaches to modelling that ensure the impacts that affect poor people are weighted appropriately, the Review estimates that the dangers could be equivalent to 20% of GDP per year or more.

In contrast, the costs of action to reduce greenhouse gas emissions to avoid the worst impacts of climate change can be limited to around 1% of global GDP each year. People would pay a little more for carbon-intensive goods, but economies could continue to grow strongly.

The shift to a low-carbon economy will also bring huge opportunities, says the Review. Markets for low-carbon technologies will be worth at least $500 billion, and perhaps much more, by 2050 if the world acts on the scale required.

The Review also examines the national and international policy challenges of moving to a low carbon global economy. Three elements of policy are required for an effective response:

  • carbon pricing – through taxation, emissions trading or regulation, so that people are faced with the full social costs of their actions. The aim should be to build a common global carbon price across countries and sectors.
  • technology policy – to drive the development and deployment at scale of a range of low-carbon and high-efficiency products.
  • action to remove barriers to energy efficiency – and to inform, educate and persuade individuals about what they can do to respond to climate change.

In particular, global support for energy research and development should at least double, and support for the deployment of low-carbon technologies should increase up to five-fold, says the Review.

ALSTOM COGEN PLANT FOR MOSCOW UTILITY

Russian utility OJSC Mosenergo has awarded a contract to Alstom for the turnkey delivery of a 420 MW generating unit at its CHP plant in Moscow – the new unit No.8 will increase capacity at the plant to 1830 MW.

The project is part of Mosenergo’s programme to develop Moscow’s power network to meet the fast-growing needs for power and heat in the capital’s region.

The contract will be carried out by Alstom in consortium with its Russian partner, Power Engineering Group Energomachinostroitelny Alliance (EMAlliance). The contract follows the strategic partnership agreement signed in 2005 by Alstom and EMAlliance. Alstom’s share of the total €280 million contract will be €170 million.

Alstom will supply a multi-shaft combined-cycle unit, comprising a GT 26 gas turbine, steam turbine, two generators, one heat recovery steam generator and the control system for the entire facility. The company is delivering an ‘integrated power solution’ including the engineering, procurement, and commissioning.

EMAlliance will manage civil works and construction and will provide the balance of plant, including the cooling tower, electrical equipment, heat exchangers and piping for the district heating system.

The power generating unit is scheduled to be in commercial operation in 2009.

ON-SITE energy FOR MADAGASCAR MINING PROJECT

The QIT Madagascar Minerals (QMM) ilmenite mineral sands project at Fort Dauphin in south-east Madagascar is to benefit from a new, 20 MWe on-site power plant to be supplied and commissioned by Finland’s Wärtsilä Corporation. The power plant, which will incorporate a waste heat recovery facility to also generate steam for use in a drying process in the mine plant, is due to be operational in April 2008.

The plant will include five Wärtsilä nine-cylinder type 32 diesel generating sets, with space left in the building for a sixth set. The plant will supply electricity for the ilmenite mineral sands project, including the dredging barge, process plant, village and port.

An operation and maintenance agreement is also under negotiation, under which the company would be responsible for all aspects of plant operation, including hiring personnel, transfer of skills and maintaining the power plant.

The Fort Dauphin plant presents some interesting challenges owing to its very remote location. Transport of equipment to the site is a particular challenge. Ilmenite is an iron titanium oxide that is used as a raw material for titanium dioxide pigment used as an extremely white base in paint. The Fort Dauphin ore body in Madagascar is the world’s largest known, undeveloped high-grade ilmenite deposit. It has an expected mine life of 40 years.

EUROPE’S PAPER INDUSTRY BUYS MORE COGENERATION

German turbine manufacturer Siemens has been winning orders for turbines to be used in Europe’s paper industry.

The company has received an order from paper manufacturer Papierfabrik Palm for two SGT-800 gas turbine units, one at each of two sites located in Eltmann, near Bamberg, and in Wörth in Rheinland-Pfalz, both in Germany. The turbines will be used for the cogeneration of electricity and process steam for the paper mills. A long-term service agreement for preventive maintenance is also part of the order, says Siemens.

The company is currently delivering one SGT-800 turbine to Sappi Austria Produktions in Gratkorn, Austria, a company that is part of the South-African Sappi group.

‘GEO-PRESSURE’ TO GENERATE POWER AT UK HYDROGEN PLANT

UK industrial gas company BOC is to be the host of what is thought to be Britain’s first on-site renewable-fuelled power generation plant based on ‘geo-pressure’. Indeed, implementation of the project also represents the launch of a geo-pressure business, 2OC.

Implementation of the £1.6 million (US$3.1 million) facility at BOC’s hydrogen generation plant North Tees, north east England, is due to begin in April and the plant is expected to start generating carbon-neutral electricity later this year.

The innovative technology harnesses the energy currently lost when natural gas pressure is reduced to a more usable level as it reaches consumers, and uses that energy to drive turbines that generate electricity. UK energy regulator Ofgem has awarded preliminary accreditation to the technology as renewable.

At the first site, 2OC will install two geo-pressure units into the pipeline which supplies the natural gas feedstock for the production of hydrogen at BOC’s facility, the largest hydrogen plant in England. The units will be capable of generating around 500-700 kW of power, sufficient to satisfy all of BOC’s site requirements.

But 2OC suggests that more than 1 GW of electricity could be generated in the UK from geo-pressure, which would go a long way towards meeting the UK’s forecast generation shortfall in the next decade. And, for every gigawatt of electricity generated in this way, the UK could save one million tonnes of carbon – the equivalent to taking nearly one million cars off the road for a year.

On current forecasts, 2OC believes that the first 300 MW of generating capacity could be available by 2010, with up to1 GW on-stream, potentially, as early as 2015. However, providing 1 GW of clean energy would require an investment of around £1.4 billion (US$2.7 billion).

BIOGAS CHP TO POWER US WASTEWATER TREATMENT PLANT

A water pollution control plant in the City of Millbrae, California, has been fitted with upgraded equipment that uses a common urban waste – inedible kitchen grease from restaurants – to produce biogas for generating renewable heat and power to treat the city’s wastewater.

The system, engineered and installed by Chevron Energy Solutions, includes a grease-receiving station and an expanded cogeneration plant, as well as other upgrades that result in annual revenues and energy savings of US$366,000 for Millbrae while nearly doubling the amount of green power produced at the plant.

More than 3000 gallons (11,350 litres) of restaurant grease is delivered to the plant each day by grease-hauling companies, which pay a city fee for disposals. Micro-organisms in the plant’s digester tanks eat the grease and other organic matter, producing methane gas to fuel the plant’s new 250 kW microturbine cogenerator – which in turn produces electricity for wastewater treatment.

Meanwhile, heat produced by the cogenerator warms the digester tanks to their optimum temperature for methane production.

The grease and other organic matter will produce enough biogas at the plant to generate about 1.7 million kWh annually, which will meet 80% of the plant’s power needs and reduce its electricity purchases significantly, says Chevron.

The total cost of the project, $5.5 million, was reduced by about $200,000 with a rebate awarded through the state of California’s Self-Generation Incentive Program administered by Pacific Gas and Electric Company.

CHP PLANT FOR TARASOVSKOYE OILFIELD IN SIBERIA

Finland’s Wärtsilä Corporation has been awarded a contract to supply a 52 MW gas-fired CHP plant to the Tarasovskoye oil field in the Yamalo-Nenets Autonomous District of the Tyumen region in Western Siberia. This will be the first-ever power plant for the Russian state-owned oil company Rosneft, one of the top ten oil producers in the world.

The power plant will comprise six Wärtsilä 20V34SG engines with heat recovery, running on associated gas from the oil well. In addition, Wärtsilä will deliver the power plant building. The contract was signed with Energotech, a turnkey contractor to Rosneft-Purneftegaz, a 100%-owned subsidiary of Rosneft.

Equipment will be delivered between October and December 2007 and the power plant will be fully operational in the spring of 2008, supplying heat and power to the oil field’s production facilities.

BIOMASS CHP PLANT TO POWER SCOTTISH PAPER MILL

The UPM-Kymmene Corporation has announced a £59 million (US$115 million) investment in a new CHP plant to be fuelled with biomass at its Caledonian paper mill in Irvine, Scotland, UK.

The proposed plant will generate over half of the mill’s current electricity needs and all of its heat requirements from renewable sources. Scotland’s Deputy First Minister, Nicol Stephen, welcomed the announcement which will also make a significant contribution towards the target of generating 18% of Scotland’s electricity requirements from renewable sources by 2010.

The new CHP Plant will utilise up to 350,000 tonnes per annum of various types of biomass, including waste products from extensive forestry operations in the region. The plant will also utilise the mill’s own site-derived residues from its paper production processes.

CALIFORNIA BREWER BUYS FUEL CELL POWER PLANTS

The Sierra Nevada Brewing Co. has purchased, from supplier FuelCell Energy, Inc., the four 250 kW ‘Direct FuelCell’ CHP plants that have been providing base load electricity and heat to the brewery’s Californian production processes during initial operations through a power purchase agreement (PPA).

The DFC power plants provide a significant percentage of the brewery’s daily electricity requirements. The power plants had already been modified to allow the host company to use fuel created from the waste by-product of its brewing process, thus reducing the company’s fuel costs by 25%-40%.

The acquisition was assisted by a financial incentive provided under the US Energy Policy Act of 2005, which provides a 30% investment tax credit, up to US$1000 for each kW of capacity, for the purchase of fuel cell power plants. FuelCell Energy estimates that the tax credit will translate to a savings of approximately 1.5-2.0 US cents per kWh for Sierra Nevada.

BIOMASS/FOSSIL BOILER FOR CHP PLANT IN Finland

Kvaerner Power is to provide an industrial-size, multifuel-fired boiler plant to Porin Prosessivoima Oy for incorporation into a new CHP plant being built at Kemira’s factory in Pori on the west coast of Finland. The new power plant will produce process steam for the adjacent factory and district heating for the nearby town of Pori, as well as electricity for the grid. The contract value to Kvaerner is approximately €50 million.

Kvaerner will supply the power boiler, which utilizes circulating fluidized bed combustion technology, and will burn wood fuel, peat, recycled fuel and coal. The boiler will have a steam capacity of 177 MW. The boiler plant is designed to fulfill the requirements of the EU waste incineration directive for co-firing, says the Kvaerner.

The power plant will produce process steam for the adjacent factory, district heating for the nearby town of Pori and electricity. The new boiler plant is expected to be ready for business at the end of 2008.

REMOTE-OPERATION CHP for welsh leisure complex

British energy services company Dalkia has installed a new CHP system to the Afan Lido Aquadome leisure complex in Wales, having collaborated with the owners of the Lido, Neath Port Talbot County Borough Council, over the design.

The CHP plant has an electrical generating capacity of 210 kW and also produces 340 kW of heating energy.

Dalkia is also responsible for 24-hour remote operation and consequent maintenance, including fuel purchase, for the unit, which should reduce annual carbon dioxide emissions by 300 tonnes. Dalkia says it now manages 159 MW of CHP generation capacity in the UK.

MICROTURBINE CHP FUELS UK HOUSING DEVELOPMENT

UK distributor NewEnCo has installed two 100 kWe gas-fuelled microturbines from Turbec to provide CHP for residential use at the revolutionary Budenberg HAUS Projekte in Altrincham, on the edge of Manchester.

The 290-apartments complex, developed by Urban Splash to cantilever over the Bridgewater canal, is recognized as the most striking residential scheme in the region.

NewEnCo installed Turbec T100 microturbine technology to provide a CHP system for the project’s energy centre due to its ultra-low emissions and noise; high reliability and low maintenance and compact size, says the company.

At this project, daily hot water demand is dealt with by the use of a large thermal store that allows the CHP plant to operate continuously. The use of smaller CHP units (rather than a large unit) increases flexibility.

ENEL PLANS INVESTMENTS in COGEN, TRIGEN AND photovoltaics

Italy’s Enel has launched a major new investment plan, involving renewables, energy efficiency and distributed generation that puts the company: ‘at the forefront in the search for innovative solutions to reducing the environmental impact of power generation and distribution.’

On energy efficiency and distributed generation, Enel says it plans €270 million of investment in distributed cogeneration and trigeneration plants; in the installation of photovoltaic plants at the transformer stations of Enel’s network; in energy savings and home automation; and in a major project to develop and test ‘smart grids’ that can adapt to distributed generation.

The company is also planning €3.3 billion of investment in new renewables capacity – an additional 1700 MW over five years – and €200 million for innovative projects such as the Archimede solar plant to be set up in co-operation with ENEA, biomass and biofuels projects.

In a largely symbolic move, Enel has also inaugurated three photovoltaic plants installed on the roof of the company’s headquarters in Rome. They have a total capacity of 40 kW, with an expected output of some 54,000 kWh per year.

CARBON ABATEMENT COULD HELP COGENERATION TO REACH NEW HEIGHTS

No more power plants with operating efficiencies less than 60%-70% should be allowed to be built in Europe; and the least efficient 20% of generating capacity should be retired in the next two years, to create space in the market for new cogeneration plants.

These were the parting words from the outgoing Director of COGEN Europe, Simon Minett, speaking at the annual conference on decentralized energy organized by WADE and held in Prague, the Czech Republic, in October. Minett has moved on after more eight years heading up the lobbying group and has been replaced by Dr Fiona Riddoch.

Cogeneration is a win-win-win technology that has yet to begin to live up to its potential, added Minett, who believes that the EU’s Cogeneration Directive, though imperfect, will, in time, help its growth. Minett said there is a massive focus on renewables in European policy circles at the moment; fossil fuels will remain very important for decades yet; there is a drive to build new generating capacity; nuclear power is not the answer; end-use efficiency is difficult to deliver; and CHP is, therefore, the easiest way forward.

Jeanette Brinch of Energetics Inc and WADE chairman Richard Brent added the American dimension, describing the excellent progress made towards doubling CHP capacity in the US. The ‘CHP Challenge’ was kicked off by a powerful allegiance of the US Department of Energy (DOE), Environmental Protection Agency (EPA) and CHP Association in 1998, when total capacity stood at 46 GW. Today this stands at 83 GW, equivalent to 9% of total US generating capacity, said Brinch, the majority of newly installed plant being smaller than 5 MW and installed to serve a range of commercial buildings, including schools and colleges.

Particularly successful have been the set of Regional Application Centres established around the US to offer advice to potential customers, and the tie-up with the EPA. Brent added that streamlined interconnection standards and state-based financial incentive schemes had also helped. However, like in Europe, there has been very little business done in larger, industrial-scale markets, where much of the unrealized potential lies.

UK RETAIL CHAIN CHOOSES ON-SITE WIND FOR SCORES OF SITES

UK supermarket giant Tesco is to move into on-site electricity generation through a series of technologies including wind energy installations at 80 or more of its sites across the country.

The retailer has appointed Newcastle-based energy consultant TNEI to manage the programme, the initial phase of which will see planning applications submitted for wind turbines to be installed at twelve sites across the country. Up to 17 sites will benefit from single turbines rated between 225 kW and 3 MW, and smaller turbines, perhaps several, will be put in place at the remaining sites, subject to local planning approval. Planning consent has already been achieved for two turbines at the store in Barrow and one at the store in Crewe.

According to a Tesco spokesman: ‘We want to find cost-effective ways to reduce emissions by generating our own energy through renewables and low carbon technology. Our £100 million (US$195 million) sustainable energy fund will enable us to develop wind turbines, solar panels, gasification, trigeneration and CHP. We are designing model energy-efficient stores which use state-of-the-art technologies, renewable energy generation and energy efficient practices and these reflect our commitment to sustainable growth. We aim to halve energy use by 2010 against a baseline of 2000.’

For the smaller installations, three-bladed ‘Gazelle’ turbines will be mounted on 13-metre tubular metal towers. Each turbine will generate 20 kW of power which will be connected to the stores’ internal electrical supply systems via underground cables and all the electricity generated will be used on the Tesco sites. Sited in the stores’ car parks, each turbine will occupy a space equivalent to one parking space, says TNEI.

The on-site wind business really took off last year in the UK, says TNEI, thanks to a couple of successful pioneering installations in the north-east of the country, rising electricity prices and the availability of renewable energy credits (Renewables Obligation Certificates, or ROCs, in the UK) for the operator.

ONE FIFTH OF CDM PROJECTS ARE COGENERATION – WADE

Cogeneration projects represent 20% of all projects registered under the Clean Development Mechanism (CDM) of the Kyoto Protocol, and account for emission reductions of more than 3.5 million tonnes/year of carbon – according to a new report: Clean Development through Cogeneration from the World Alliance for Decentralized Energy (WADE).

The CDM is one of the Kyoto Protocol’s market mechanisms designed to provide flexibility in reducing climate destabilizing greenhouse gas emissions cost-effectively. It encourages cooperation between ‘developed’ and ‘developing’ countries.

The report sheds light in the current status of CHP projects in the CDM, analyzes the potential for future projects in specific sectors and countries, and provides participants with a step-by-step guide for implementing a CHP project within the CDM.

The research in the WADE report is based on data and reports from the United Nations Framework Convention on Climate Change (UNFCCC), market data, research institutes, CDM project participants and other stakeholders.

According to WADE Executive Director David Sweet: ‘This landmark study highlights the global potential for decentralized energy to improve the environment and the corporate bottom line. The CDM incentive makes DE technologies even more attractive than they already are and will accelerate the pace of addressing the greenhouse gas problem.’

www.localpower.org

GOTHENBURG CHP PLANT TO OPERATE AT 92.5% EFFICIENCY

Sweden’s Göteborg Energi has inaugurated a new, 260 MW CHP plant in the city of Gothenburg that is estimated to be able to prevent the emission of 600,000 tonnes per year of carbon dioxide.

The natural gas-fired plant, installed by Siemens Power Generation, has an overall efficiency of 92.5% and will meet around 35% of Gothenburg’s district heating demands and 30% of its power requirements. Plant commissioning was scheduled to be completed at the end of 2006.

The new plant, sited in the Rya dock area of the city overlooking the River Göta, is the first large-scale power plant to be built in Sweden for twenty years and it will be used to meet the significant increase in demand for electricity and district heating, feeding some 260 MW of electricity into the Swedish grid. Combining a gas turbine cycle for power production with a steam turbine cycle for power and heat production has resulted in the very high level of overall efficiency, says Siemens.

The Siemens scope of supply included civil works, turbines, heat recovery steam generators, erection, commissioning and performance testing. A separate long-term service contract for a period of 15 years was also signed.

The power island for the plant comprises three 45 MW SGT-800 gas turbines and one 141 MW SST-900 steam turbine. The gas turbines are specially designed for cogeneration applications, optimized to exhaust into a heat recovery steam generator for maximum efficiency.

They are fitted with low NOx burners for operation on both oil and natural gas.