NNE5-1999-00075 Power plant based on fluidised bed fired with poultry litter

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Agricultural Residues : EESD (Energy, Environment and Sustainable Development) : Electricity : Thermochemical Conversion

Proposal No:	NNE5-1999-00075
Date Prepared:	February 2004
Source:	European Bio-Energy Projects (EUR 20808)

Introduction

To achieve the overall aim of the project, we have had to balance the financial risk limitations of the project sponsor with the technical risk perceived by the 'Turnkey' contractor, who is required to build a plant which is three times bigger than any similar facility currently operating worldwide. In addition, we have had to provide comfort to financial investors that the project will not only achieve its performance requirements at handover, but will be capable of doing so for its projected life of 20 years.

The vast majority of the income to this scheme will result from the sale of electrical power. Over the last 18 months, the Dutch green power market has been in a state of turmoil, following radical changes in government support mechanisms, combined with two national elections.

The plant will consume about 25% of the national poultry waste produced in the Netherlands. It has had to be demonstrated that this could be procured and delivered on a 'just in time', long-term basis, for a known cost. This task has been further compounded by the recent outbreak of Newcastle's disease within the Netherlands, which has restricted the free transport of fuel and caused bankruptcy amongst potential fuel suppliers.

Activities

The development of the project is divided into three work packages. The first phase encompasses the basic engineering, permitting, production of tender documents and contract negotiations. The second phase covers awarding contracts and plant construction. The final phase commences on plant commissioning and covers monitoring and information dissemination during the early phase of operations.

The main responsibilities are as follows: Energy Power Resources has coordinated the internal communication and financial administration of the project team. Essent assisted with the co-ordination and communicated with its related companies with regards to the purchase of land, integration of cooling water, electrical grid connections and gas supply.

DEP was responsible for the fuel supply contracts with over 450 producers. It also played a major role in negotiating the ash off-take arrangements. DEPR was responsible for obtaining the necessary permits and providing project management during the basic engineering phase. It will be responsible for managing the 'Turnkey' contractor during construction, with particular emphasis on quality and ensuring a smooth transition between the project phases.

Expected Results

The benefits resulting from the successful operation of this plant are significant, both on a local scale and on a European scale. At the local level it will provide a secure future for 450 Dutch poultry farmers by providing them with a guaranteed safe disposal route for their poultry litter waste. It is hoped that the successful demonstration of this plant will stimulate the construction of a second facility within the Netherlands and generate interest, particularly from within Eastern Europe.

The Netherlands alone produces in excess of 1million tonnes of litter per annum. Much of this is spread on farmland with the consequen risk of land and water contamination through leaching of the highly soluble nitrates and phosphates present in the litter. This can lead to seasonal, toxic algal blooms, resulting in the rapid poisoning of local water sources. Combustion of the litter in the DEPR plant will covert these soluble elements into 50,000 t.p.a. of an easily manageable organic ash, which it is hoped will form the basis for a new sustainable fertiliser industry.

The most obvious benefit resulting from this facility will be the generation of over 225,000 MWh pa of renewable electricity from a sustainable agricultural fuel source. It is expected that the plant will avoid the production of 370 g/kWh of CO₂ when compared with a CCGT facility, which will equate to an annual net CO₂ avoidance of around 80 000 tonnes.

Progress

Due largely to the Dutch political uncertainty and an outbreak of disease in the Dutch flock, progress has been slower than originally expected. Nevertheless, DEPR has pressed ahead and completed a number of key milestones. The 'Turnkey' EPC O&M contractor, (a consortium of Siemens Nederland NV and Austrian Energy & Environment AG) has been appointed. The project is now fully permitted and the ash has been classified as a 'product' allowing it to be more easily traded.

The recent ratification of the Dutch Government's MEP Laws (June 2003) will allow the DEPR project to move forward to a financial close this autumn. Construction is expected to commence before the end of the year 2003 and the plant should be operational during 2005.