(This presentation was prepared for an EPC contractor for presenting to management in the year 2003 as a part of proposal)
The Project
12 MW Integrated Gasification Combined Cycle Power Plant
Project Profile
Gross Generation – 12.0 MW(Site Conditions)
Plant Configuration – Gasifier + Gas Filter + Gas Turbines + HRSG + Steam Turbine and associated Balance of Plant Equipment
Location – Andhra Pradesh.
Fuel – Wood & Woody Waste, Coconut / Oil Palm Leaves & stems, Oil Palm Bunch & Fiber, Coconut Fiber (Fuel samples tested in the gasifier at the laboratories in Finland.)
Fuel Source – Agro Waste from Fields and Agro based industries in an area of 12 mandals within 25 km radius (Survey done)
Ash – Land filling and as manure
Water Source – Bore well water (Soil Investigation has been done)
Land – about 57 acres of land already procured
Power Evacuation – 132 kV level To APTRANSCO (PPA has been signed)
Project Financing
Project Cost – Approx. 20 Million US$
Financing – Yet to be tied (Promoter claims that he has got in-principle sanction from Bank)
Sponsor’s equity in place
MNES subsidy is expected on successful commissioning which will meet the escalation cost
Better IRR for a 15 year period and will improve once recent amendments of tax benefits are utilized
A comprehensive package of insurance coverage is being provided to the satisfaction of the lenders
CDM benefits
The IGCC Process
The Technology for the Future
Worldwide IGCC Installations/Constructions
Biomass Fuels
Biomass proposed to be used in the IGCC Power Plant
Biomass Handling System
Engineering, Procurement & Construction (EPC)
Scope of EPC
Total Engineering, Supply, Erection, Testing and Commissioning of IGCC Plant including Gasifier, Hot Gas Filter, Gas Turbines, HRSG, Steam Turbine, Biomass Storage &Handling System and associated Balance of Plant systems
Project Management Activities pertaining to EPC
Clearances like IBR, Electrical Inspectorate Clearance etc.
Performance Guarantees including Power Output, Heat Rate, Auxiliary Power Consumption, Plant Availability
Construction Power & Water
Supply of 2 years operating spares for the plant
Unit characteristic test demonstration as per PPA
Completion of Plant Erection and start up in 18 Months and trimming and fine tuning to achieve rated performance within next 6 months.
Liabilities for non-performance including the risk related to Gasfier, Hot Gas Filter and Gas Turbine
Bonus Clause is there for better performance
EPC Risk – Technology
IGCC technology for Indian fuels and conditions not yet proven in a commercial plant
Gasifer for biomass is proven in non-commercial pilot plant (Varnamo biomass demonstration 6 MW IGCC Power Plant, Sweden)
Biomass preparation and handling
Gas turbine integration in a commercial biomass plant is not yet proven
Performance of Hot Gas Filter for biomass fuel
Availability guarantees as expected by the promoter 8000 hrs (more than 90%) for the Indian biomass fuels in IGCC route is to be reviewed
Extra exposure to liabilities due to the account of Gasifer, Filter and Gas turbine supplier non-performance
Other EPC Risks & Mitigating Factors
Cost Overruns – Fixed price EPC construction contract; all change order to be approved;budgeted contingency
Construction Delay- LD for delay in completion; budgeted contingency
Plant Performance – Stringent LD clause for the sub-contractors
Force Majeure – Risk Insurance
Project Defects – Trimming period of 6 months and 1 year warranty period
Operation and Maintenance (O&M)
Scope of O&M
Involvement during the commissioning of the plant for the smooth takeover
Complete Operation and Maintenance of the facility from takeover
To Provide adequate trained man power for O&M
Development of O&M management system
Preparing an annual operating plan
Developing monthly power generation report
Planning of shut down and maintenance schedules
Attending Minor/Major breakdown of power plant equipment
Attending to unscheduled maintenance as and when required
Major and Minor Overhauling of Power Plant equipment & auxiliaries
Obligation of the Promoter for O&M
Providing all tools & tackles including special tools, Welding & Gas cutting equipment, workshop facilities, Chemical lab, Testing instrument & equipment
Providing Fuel, Water, Compressed Air, Spares and all consumables
Providing Furnished Office with required facilities including plant communication system
Providing Free furnished accommodation, Boarding and local transport to O&M staff
All Statutory formalities for operating the plant
Providing secure on-site warehousing facilities for tools and spare parts
Unskilled personnel
O&M Risks & Mitigating Factors
Plant Availability – To be addressed carefully because of Technology Risk
Plant Output –
Plant Efficiency – Preventive Maintenance
Force Majeure – Risk Insurance
Environmental Compliance – Project designed to meet environmental regulations; no unusual high-risk environmental considerations
Fuel Supply – Farm insurance contemplated, Alternate fuel (Coal, RDF & HSD) supply considered
O&M Cost
The compensation for O&M shall be based on of annual turnover on a minimum guaranteed exportable power of 86.5 million units.
The above compensation is excluding the cost of spares.
The liability for not meeting the minimum generation is 5% of generation cost with a maximum cap of 15 % of annual turnover.