Fuel conversion at the Vaasa power plant:

LARGE-SCALE BIOMASS GASIFICATION PLANT

INTEGRATED TO A COAL-FIRED BOILER

BioGaC Project,

Study Visit at Vaasa

November 25, 2014

Mauri Blomberg

1 25.11.2014

Contents:

1. Vaskiluodon Voima Oy, Vaasa power plant

2. Background of the project

3. The gasification plant project

4. Vaskiluoto gasification plant

5. Procurement of biomass

Large-scale biomass gasification plant

integrated to a coal-fired boiler

2 25.11.2014

Vaskiluodon Voima Oy

Vaskiluodon Voima was established in the late 1960s

and is equally owned by the energy companies

EPV Energia Oy and Pohjolan Voima Oy.

Company’s power plants, situated in Vaasa and

Seinäjoki, together generate 1,2 – 2.5 TWh/a of

electricity and around 800 GWh/a of district heat.

The power plants’ production of district heating covers

approximately 60% of the needs of the city of Vaasa

and 90 % of needs of the city of Seinäjoki.

As fuel Vaasa power plant uses coal, biomass and

peat. Seinäjoki power plant’s main fuels are biomass

and peat.

Vaasa

Power

Plant

Seinäjoki

Power

Plant

FINLAND

3 25.11.2014

Vaskiluoto 2

Investments were made in several phases:

Coal-fired boiler 1982

Desulphurization plant 1993

New turbine plant 1998

Biomass gasification plant 2013

In technical terms, the plant is

fit for use until 2030

Technical specifications:

Electricity output 230 MW

District heating 175 MW

Production:

Electricity 0,9 - 1.7 TWh/a

District heating 450 GWh/a; covering approximately 60% of the Vaasa area’s

district heating demand

Vaasa power plant – Vaskiluoto 2

4 25.11.2014

Vaskiluoto 2 - Process Diagram

5

District Heating

175 MW Coal,

Biomass,

Peat

Vaasa

Boiler Plant

560 MW Turbine Plant Generator

230 MWe

25.11.2014

Vaskiluoto 2 - Process Diagram

G

GYPSUM SILO

LIMESTONE SILO

BOILER PLANT

LUVO

TURBINE PLANT

43 bar / 570 °C

185 bar / 536 °C

HP IP LP

FEED WATER

COAL SILOS

80 t/h

ESP

VAASA

DISTRICT HEATING NETWORK

COAL MILLS 4 PCS

FGD -PLANT

ABSORBER

GAVO

FLY- ASH SILO

250 MWe

175 MW dh

550 000 t/a

GYPSUM DEWATERING

CONDENSER

190 kg / s

6 25.11.2014

1. Vaskiluodon Voima Oy, Vaasa power plant

2. Background of the project

3. The gasification plant project

4. Vaskiluoto gasification plant

5. Procurement of biomass

7 25.11.2014

Fuel conversion - from coal to biomass

Domestic

biomass to

replace coal

Possibility of producing

competitively

condensing power

remains

Cost-efficient electricity

and heat production

Reduction of emissions

8

Main drivers for the project

+ European emissions trading system and feed-in tariff for forest biomass

+ Taxation of fossil fuels used for district heating

+ National pressure to decrease the use of coal in CHP-plants

+ The possibility to extend the lifecycle of the existing power plant

25.11.2014

Technical options for reaching the

targets

1. A new CFB-boiler to replace the existing pulverized coal-fired boiler

+ Technically a good solution

+ Enables use of a wide range of biomass and other fuels

- High investment costs and long outage

- Uncertain investment environment

2. To add biomass grinding equipment to the current plant

+ An inexpensive technical solution

- Need for higher cost dry biomass, which can be ground to a sufficiently fine grade (normal forest chips are not feasible)

- With use of local biomass, only relatively small amount of coal could be replaced

9 25.11.2014

3. Integration of a biomass gasification plant to the existing coal-fired boiler

+ Enables use of a wide range of biomass and other fuels

+ A retrofit investment that is a relatively inexpensive solution

+ The existing coal-fired boiler can be utilized

+ Short project time and the need for only a few weeks’ outage of the existing power plant

- Technical risks of a new technology

- Some process risks with the existing coal-fired boiler

Technical options for reaching the

targets

10

As a conclusion, gasification was

seen as the best suitable technology

for the Vaasa power plant.

25.11.2014

1. Vaskiluodon Voima Oy, Vaasa power plant

2. Background of the project

3. The gasification plant project

4. Vaskiluoto gasification plant

5. Procurement of biomass

11 25.11.2014

The gasification plant project –

key data

Project budget

Project’s overall budget is below 40 million euros

Ministry of Employment and the Economy granted an investment aid of

10,8 million euros for the project (renewable energy, new technology)

Main equipment supplier

Metso Power Oy

Time schedule of the project

Signing of the main equipment contract, May 6, 2011

Handing over of the gasification plant to Vaskiluodon

Voima, Jan. 31, 2013

12 25.11.2014

The gasification plant has a fuel input of 140 MW and can replace around 25–40 percent of the coal currently used at Vaasa power plant.

Gasification of wood, peat and field biomass results in product gas that is fired together with coal in the existing boiler

The gasification plant can be fired exclusively with forest biomass.

The gasification plant uses peat as the reserve fuel

13

The gasification technology

Coal-fired boiler

Biomass dryer Fuel receiving and storage

Gasifier

25.11.2014

Power plant’s size and efficiency

14

Small power plant,

efficiency 25 %

Large power plant,

efficiency 40 %

25 MW green electricity

40 MW green electricity + 160 MW coal electricity

100 MW,

fuel

100 MW,

fuel

400 MW,

coal

25.11.2014

The gasification plant layout

Fuel

receiving

Fuel

crushing and

sieving

Fuel

sampling

Fuel storage

silos

Forest chip

dryer

Gasifier

15 25.11.2014

Gasification plant – benefits

Main conclusions:

1. The gasification plant makes possible to use a wide range of bio fuels.

Possible to continue heat and power generation cost efficiently

2. The gasification plant reduces the use of coal by 25 - 40%.

3. The investment reduces power plant’s CO2-emissions by 230 000 tons/yr.

4. Positive impacts on the regional economy and employment:

The fuel used for gasification is domestic and locally produced;

EUR 15 million will be injected into the regional economy annually

(Earlier this money was used on imported coal and CO2-emission rights).

The gasification plant results in a direct, permanent net

employment effect of approximately 100 person-years.

16

The gasification plant reduces the use of coal by 25–40%

25.11.2014

1. Vaskiluodon Voima Oy, Vaasa power plant

2. Background of the project

3. The gasification plant project

4. Vaskiluoto gasification plant

5. Procurement of biomass

17 25.11.2014

Bio fuels for the gasification plant

18

The fuel required for the gasification plant (900 GWh/a) is procured locally within 100 kilometers of the plant:

Forest chips 90 % (50–100%)

Reed canary grass, grain and straw 0 % (0–5%)

Peat 10 % (0–50%)

Amount : 30 trailer-trucks a day

25.11.2014

19

1. Forest chips

Forest residue chips

Stem wood chips

Stump wood chips (mainly from

spruce trees)

2. By-products of wood-processing industry

Sawdust

Bark

3. Recycled construction wood chips

Bio fuels for the gasification plant

25.11.2014

20

Mauri Blomberg Managing Director Vaskiluodon Voima Oy +35850 377 7020 mauri.blomberg@epv.fi

25.11.2014