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Govora TPP

S.C. CET Govora S.A.

• CET Govora produces both electricity and heat energy.
• Ownership structure: 100% owned by Valcea County (GD 1005/2002) – sole shareholder.
• Registration No. at Trade Chamber: J38/ 683/ 1997
• Fiscal Identification Code: RO 10102377
• Brief History: the design and construction of CET Govora started in 1950s and is closely linked to the development of Chemical Platform Rm. Valcea. Four main stages of development can be distinguished:
  1. 1958-1959: 2 natgas-fired boilers (100 t/hr. each) and a 7.5 MW turbine; current status: decommissioned.
  2. 1969-1970: 2 units x 50 MW (natural gas-fired); current status: decommissioned, some parts of the dismantled equipment will be reused.
  3. 1973-1976: 2 natgas-fired boilers (420 t/hr) that were upgraded in the mid 2000s to be able to run also on fuel-oil + 2 turbines x 50 MW each; current status: active.
  4. 1986-1993: development of coal-fired capacities, namely 3 lignite-fired boilers (420 t/hr) + 2 turbines x 50 MW each; current status: active.

Location: Str. Industriilor nr. 1, Rm. Valcea, Valcea county, Romania. The TPP is located on the Chemical Platform, 12 km south of the Ramnicu Valcea city.

Total available installed capacity: 200 MW

Production Capacities: The power plant is mainly coal-fired (3 boilers run on lignite for base-load: Boilers No. 5, 6, and 7) and 2 natural gas-fired boilers (No. 3 and 4 for back-up). The TPP currently has 4 working turbines x 50 MW each. During the past years, Govora TPP has functioned mainly based on its coal-fired production capacities.

The plant’s production capacities – 5 boilers (C3, C4, C5, C6, C7) and 4 turbines are grouped into 3 Large Combustion Installations (LCIs):

• LCI 1: boilers C3 + C4; nominal thermal capacity of 586 MW_t; own chimney;
• LCI 2: boiler C5 + C6; own chimney;
• LCI 3: boiler C7; own chimney.

Integrated Environment Authorization: Govora TPP has the authorization only for LCI 1 (obtained in 2014 and valid until 2024). Govora TPP does not currently (Febr. 2015) have the authorization for LCI 2 and LCI 3 (both have expired at December 31, 2013)!

Large Combustion Installation 2

(boilers C5 + C6)

DeSOx: NOT IMPLEMENTED YET

In June 2014, the company signed a contract to conduct “The feasibility study for flue gas desulfurization at the Large Combsution installation No. 2 at Govora TPP – coal-fired boilers C5 and C6 in order to conform to environmental standards”.

The feasibilty study (no. 23094) has been finalized on October 20, 2014. The tender documentation (Caiet de sarcini) is under preparation for the public acquisition of the turnkey project. The optimum solution identified was one deSOx unit for both boilers. The investement is uncertain due to lack of financial resources.

DeNOx: NOT IMPLEMENTED YET

There is a feasibility study for SO2, NOx and dust reduction at the LCI 2 (study no. 592/September 2010) conducted by REMAT Valcea. Investments for modernization of the electrofilter have to be sustained by the company’s own means. Upgrade work has not started.

DeDust: PARTIALLY COMPLETED (2 electrofilters modernized + 2 electrofiletrs with modernization in progress). Project titlled „Upgrade of electric de-dust at the LCI 2 in CET Govora in ordere to increase de-dust efficiency to max. 48 mg/Nmc (at exit from electrofilter)” was finalized for:

• ELFI 1 C6 – put into operation at the end of January 2014 (no. 478 / 07.01.2014);
• ELFI 1 C5 – put into operation at the end of September 2014 (499 / 22.09.2014);

Initially, the company estimated that modernization of the second electrofilters for boiler 5 and 6 will be ready as follows:

• ELFI 2 C6 – by end of October 2014 (not materialized);
• ELFI 2 C5 – by end of December 2015 (not materialized).

Until the upgrade of the second electrofilters (of both Boiler 5 and 6) is complete, the 2 boilers function only using the 2 upgraded elctrofilters (which function alternatively). During 2015-2016 the 2 upgraded electrofilters shall operate at nominal capacity while the other 2 (ELFI2 C5 and ELFI2 C6) shall operate at reduced capacity in order to comply with the 48 mg/Nm3 dust limit.

Because boiler no. 7 will be shut down in 2015 (to allow the construction of the deNOx installation – see section on LCI 3 below), modernization work on ELFI 2 C5 and ELFI 2 C6 can resume only after March 31, 2016. Under this circumstance, the company etsimates that ELFI 2 C5 and ELFI 2 C6 to be finalized by November 30, 2016 (depending also on availability of funds).

Large Combustion Installation 3

(boiler C7)

DeSOx: NOT IMPLEMENTED YET

This installation is equipped with a functioning continous monitoring system. In order to achieve compliance with environmental requirements, the operator has initiated the following steps:

• Financing the project „Rehabilitation of the district heating system in Râmnicu Vâlcea for the period 2009-2028 in order to increase energy efficiency and comply with environemental law” from SOP Environment (Priority Axis 3). The contract was signed in Aug. 2011 for 232,424,686 lei.
• This project inludes building of LCI 3 (boiler no. 7). The contract for deSOx instalation was signed on 25.04.2013, and on 21.05.2013 the Order to start construction was issued. On 31.01.2014 was issued the Cosntruction Authorization no. 46/2480. Current degree of contract execution: 49%. According to the constructor’s schedule (updated version), the deSOx installtion is planned to be put into operation on March 21, 2015.

DeNOx: IMPLEMENTATION IN PROGRESS (just started)

This too is related to the project „Rehabilitation of the district heating system in Râmnicu Vâlcea for the period 2009-2028 in order to increase energy efficiency and comply with environemental law”. Tender was published in SEAP in 2013 (announcement no. 148461 / 01.05.2013). The offers were open on 04.03.2014. The contract was signed with the company ENERGOUTILCONTACT SA Bucuresti on 05.09.2014 (contract no. 13091). Now, production data is collected for the design stage. For the Technical Project, there are engineering design activities underway for: coal dust burner (BBS), electric project (Celin), constructions (SCAM), SNCR, boiler (parts under pressure). Construction Authorization no. 1024110 / 19.12.2014 was issued for the organization of the construction yard. During 2015, boiler no. 7 will be shut down in order to allow the construction of the deNOx installation.

DeDust: plans to modernize electrofilter (preparation stage, info at August 2014 level)

• Main clients of Govora TPP:

  • Electricity produced is supplied to the National Power Grid (contracts with CEZ, Enel, Electrica) and to Oltchim Râmnicu Vâlcea  (biggest economic player in the country, insolvent for the past two years);
  • CET Govora is the sole supplier of thermal energy (industrial steam) to Industrial Platform Râmnicu Valcea South;
  • CET Govora is the sole supplier of thermal energy (industrial steam) to S.C. Uzinele Sodice Govora (USG) Ciech Chemical Group S.A. (located in Ramnicu Valcea) based on a commercial contract for 10 years (2007-2017);
  • CET Govora produces and distributes thermal energy (heat + household hot water) to urban residents in the following cities:
    1. Ramnicu Valcea (90,000 consumers): CET Govora (Govora) has a concession for 25 years (2002-2027) for the operation of the city’s district heating system. CET Govora is the only heat supply source: ECOCET (under construction) is envisioned to provide hear during summer time and Boiler 7 (modernized with the help of EU funds) is envisioned during winter. Modernization of coal-fired Boiler 7 includes the construction of an FGD installation (FGD 1).
    2. Calimanesti (geothermal): Govora has a concession for 25 years for operating the district heating and water supply-sewage systems.
    3. Baile Olanesti: Govora has concession for 25 years for operating the district heating and water supply-sewage systems.

LATEST NEWS: The transfer of Berbesti and Alunu coal mines from C.E.O to CET Govora was approved in February 2015. These two mines, located in Valcea county, but belonging to Complexul Energetic Oltenia, are the main provider of coal for Govora TPP. By transferring the 2 mines to CET Govora, the government plans to create another integrated mine and coal-fired power plant in Romania: Complexul Energetic Valcea. The government hopes that this measure would help in the process of privatizing Oltchim. Alunu and Berbesti mines have 1,097 employees and have mined 1,410,000 tons of coal in 2014.

CET GOVORA 2014 – LOCATION OF PLANNED INSTALLATIONS

Source: CET Govora Retechnologization and Ecologization Strategy, March 2012

Govora TPP participates in Romania’s application of transitional allocation of CO2 emissions for electricity production during 2013-2020 (Directive 2003/87/EC). Govora TPP has two cogeneration projects in the National Investment Plan: ECOCET Govora and VILCET Energy:

• ECOCET Govora: a high efficiency biomass cogeneration power plant with a 4.6 MW electricity capacity and 18 MW thermal capacity to be built by the end of 2016.

Estimated construction period: four years.

Estimated investment value: 22.5 million euro.

Feasibility study carried out by: MVV Decon GmbH Mannheim.

The power plant will be supplied with sawdust, solid waste of plant origin (for instance, byproducts either from industrial primary wood processing and wood pellets). It will rely mainly on local sources of biomass (Gorj, Valcea, Sibiu and Arges counties are some of the most forest-rich regions in Romania).

Number of new jobs created: 45 (20 in the power plant and 25 for biomass collection). The power plant is estimated to cover the entire thermal energy consumption of Rm. Valcea: 120,000 Gcal/year (18 MW average heat capacity required for the city’s hot water supply). This project relies also on the support scheme set out in Law 220/2008.

• VILCET Energy: a high efficiency natural gas-fired cogeneration plant which would be an alternative for partially replacing the existing industrial steam sources. The project includes also the modernization of the 110 kV power station at CET Govora by 2018, following which the station will become property of Vilcet Energy.

Estimated investment value: 80 million euros.

Number of new jobs created: 60.

SC Vilcet Energy RSL is a SPV founded by CET Govora in 2010 in which CET Govora is the sole shareholder.