Our Forum - KONCERN

Commercial Biomass

2004.12.01

- More and more can be heard about the biomass from PKE. When will the co-combustion of biomass at commercial scale start in Siersza Power Plant?

So far, the co-combustion of biomass with primary fuels in Siersza Power Plant has been at the test stage, in order to check the boiler and auxiliary systems operation. In order to commence energy production from renewable sources by co-combustion of biomass with primary fuels, it is necessary to obtain a relevant permit. The Concern submitted the relevant application to the Energy Regulatory Office on September 16, 2004. We shall commence commercial co-combustion of biomass immediately after having received the permit.

We are also in the final stage of preparation of applications to the Energy Regulatory Office in order to extend the permit for energy production from the renewable sources for other plants in the Company: Jaworzno III Power Plant (Power Plant II) and Łaziska Power Plant.

- What is the investment cost in Trzebinia?

The Project involved adjustment works on the existing, spare coal loader to load biomass and construction of measuring systems on it. Additional Works involved installation of housing on the loader conveyor belt, placing a concrete surface on the biomass storage yard and providing equipment to the chemical laboratory, in order to perform physical and chemical analyses of the fuel. The costs amounted to approximately 700 thousand PLN. We plan to extend the installation in 2005, in order to provide better logistics for the co-combustion system as well as two independent systems for biomass feeding. We shall build a system of feeders and a biomass silo.

The return on investment period will strictly depend on the costs of biomass purchase, investment expenditure, the price and volume of the energy produced from renewable sources. We currently negotiate the contracts pertaining to these issues and we enter into biomass supply contracts. It is the market, which shall dictate the price of energy from renewable sources or rather the price of the certificates of origin. The demand for such energy will grow, due to the legal obligation for certain share of such type of energy in total production volume.

- Who will supply biomass?

PKE negotiates supply terms of the fuel, based on the offers received during the tender procedure. We shall select the suppliers who fulfil the tender requirements and offer the most competitive prices. The issues of logistics and the fuel quality are not less important.

The biomass will be used firstly to produce energy, according to the obligation resulting from energy supply contracts signed by PKE, for customers who use energy for their own needs. If the market price of the certificates of origin assures profitability, we are prepared to increase production.

- What is the production cost of 1 MWh of energy from co-combustion process versus the average cost of energy produced by traditional methods in PKE power plants?

The production cost of 1 GJ of chemical energy from plant biomass is currently 1,5-2,5 times higher than the cost of 1 GJ of chemical energy from coal. I do not even refer to the costs of using the low quality coal, commonly referred to as coal slurry. This results not only from different costs of biomass but also from transport costs, depending on the fuel source. Additionally, amortization is charged to the cost of energy production from renewable sources. However, it should be emphasised that co-combustion of biomass and coal is the cheapest method of green energy production, even versus wind or solar energy.

- Are co-combustion tests implemented in many of your power plants?

Within PKE, the co-combustion tests of biomass with primary fuels have been realised in the following plants: Katowice Combined Heat and Power Plant, Siersza Power Plant, Łaziska Power Plant, Jaworzno III Power Plant (Power Plant II and Power Plant III).

It is necessary to implement these tests not only to test boilers and auxiliary installations operation but also due to the requirements dictated by the Energy Regulatory Office, according to which, prior to submitting an application for extending the production of energy from renewable sources permit, it is necessary to present positive results of such tests.

 

Interviewed by: Józef Kotlarz