TURUN SEUDUN ENERGIANTUOTANTO OY

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TURUN SEUDUN ENERGIANTUOTANTO OY Sustainable heat and electricity solutions for Turku and beyond

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Experts IN ENERGY

By using the most advanced technology available, TSE strives to produce sustainable and cost effective heat and electricity solutions for Turku and the surrounding areas Writer: Emily Jarvis Project Manager: Dave Alexander

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urun Seudun Energiantuotanto Oy (TSE) was founded in 2001 with the sole purpose of building a new CCGT power plant in Naantali for the district heat production to service the Finnish city of Turku and the surrounding municipalities.

TSE combines local expertise in the energy sector and expert knowledge from the Nordic energy industry to ensure that the Turku region receives its basic heating systems in an economic, efficient and sustainable way.

In 2001, Finnish NG company Gasum had a plan to construct a

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natural gas pipeline from central Finland to the Turku area, designed mainly for industrial use and energy production. However, the plan was never realised at this time. In 2011, the decision was then made to merge base energy production of Turku Energia Oy and Fortum’s local power plant into one company - TSE Oy where these production assets were transferred, and the dream of creating a sustainable way to meet the heating requirements of the Turku area were born.

Today, TSE has an annual turnover of €150 million, which promises to remain steady into the future. “The

existing CHP-capacity at the Naantali coal fired power plant will be replaced with more sustainable forms of energy generation in the form of the new NA4 CHP project. This project has reached the engineering phase with process and layout design nearing completion.

The project is running on schedule and we are due to start work on the site this year,” says TSE Managing Director Tapani Bastman.

The turnover becomes even more impressive when considering there are only two people who work for TSE, making the company one of the most outsourced in the world.

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Varied climate

Finland is a country of contrasts, not just in the geographical sense, but also in its climate. Temperatures during the year vary considerably from -30°C in winter and +30°C in the summer. This has a considerable impact upon the country’s energy usage. By using the most advanced technology available, the country and energy companies like TSE strive to produce as much electricity as possible while also generating heat for the population of Finland.

Even though the population density is low, Finland’s share of CHPproduction is among the highest in Europe; last year reaching 28 percent of the total electricity consumption in the country and accounting for one third of power production. As a result, another of TSE’s goals is to commit to the use of local and other sustainable sources of energy as required by the changing market conditions and the growing concern for the environment.

Fuel flexibility through circulating fluidised bed technology

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The intensive energy usage is backed by a large share of renewable based energies including biofuels used for heating purposes. “The country has a long tradition of utilising wood as an energy resource. The share of hydro power is not as high as the neighbouring countries Sweden and Norway, which is just one of the reasons why CHP-production technology has been developed successfully for decades here,” comments Bastman.

Unique alliance model

In order to complete the NA4 CHP project, TSE has opted to use an alliance model for all civil work and HVAC installations, which is a relatively new concept in Finland. “Our project is the first on an industrial scale in the country to be utilising this new approach for civil works,” says Bastman.

In an alliance contract model, a set of providers enters into a single arrangement with a CCG to deliver services. Commissioners and providers are legally bound together to deliver the specific contracted service, and to share risk and responsibility for meeting the agreed outcomes. As such, they should be incentivised to innovate and identify efficiencies across the system, rather than solely within their organisation.

Subsequently, the alliance is reliant on high levels of trust across its relationships. Members collectively govern the alliance through a leadership board with an agreed term of reference.

Accompanying this new way of managing services is TSE’s unique commitment to shareholders via an ‘open book plus fee’ principle.

Bastman explains how this has a strong impact on the annual average prices of TSE’s products: “This requires a careful balance between prices and

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VALMET

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aantali, Finland to get Valmet’s multifuel CFB boiler

High combustion efficiency, low emissions and the combustion of biofuels are among the main characteristics of Valmet’s power generation solutions.

Fuel flexibility “Valmet’s fluidised bed boiler technology improves fuel independence through the utilisation of local biofuels”, says Jouni Kinni, Senior Sales Manager at Valmet. “This also applies to high humidity-content fuels and varying fuel proportions.

Demanding fuels, such as refusederived fuel and agro biomass, can be used in the same unit.”

A large-scale power plant The Finnish energy supplier Turun Seudun Energiantuotanto has chosen Valmet as the boiler supplier for their upcoming power plant in Naantali. The start-up is scheduled for the autumn of 2017.

The investment enables an increase in renewable fuels in power generation and the fulfilment of the new IEA emissions directive, which will come into effect in the EU at the beginning of 2016.

The power plant represents everything that Valmet stands for. “It is designed to generate power by using biofuels at high efficiency,” says Jouni Kinni.

“The loop seal superheater is external from the furnace, taking heat only from the circulating material returning from the cyclone. This enables the use of corrosive fuels in a high-steam temperature boiler.”

Read more

www.valmet.com www.twitter.com/valmetglobal

Move your business forward with improved fuel flexibility

A boiler with multifuel capability gives you the flexibility to choose the most economic fuel based on availability and price. Our HYBEX and CYMIC boilers using bubbling and circulating fluidized bed technology are known for their high efficiency and reliability, excellent controllability and low emissions even with the most challenging fuel combinations.

Read more at valmet.com/cymic valmet.com/hybex

Learn more about Valmet’s CYMIC boilers and watch the Naantali project presentation

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profit. A certain level of annual profit or EBIT- can be estimated and agreed beforehand by owners during the budgeting procedure.�

About biofuel

In essence, Biofuel is created based on different fractions of harvested wood (timber and fibrewood) which is chipped before transportation to a power plant, such as Naantali. TSE plan to use different wood residuals from saw mills and a small amount of straw from nearby farmers.

Percentage of energy generated by biofuels at the plant

60 - 70%

30 - 40%

future plan

initial plan

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Tapani Bastman, Managing Director, TSE

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As a consequence of the NA4 CHP project, we decided to modernise the youngest of the blocks at Naantali coal fired power plant to fulfil the all new IE-directive (emissions to air), and to continue to operate this part of the plant each winter up to the year 2025.

This project is called NA3 retrofit and one part of this investment is adding a new SCR-system to the boiler”

NA4 CHP Project In spring 2014, shareholders made the decision to construct a new multi-fuel CHP-power plant to replace two of the three existing coal-fired power blocks of the Naantali power plant. This environmentally-friendly combined heat and power facility will utilise various forms of biofuels.

Relationship with Turku Energia Turku Energia is the second biggest owner and biggest client of TSE in terms of supply of energy. “We enjoy a prosperous partnership with Turku Energia. By cooperating on a daily basis - which is a must when optimising the production on hourly basis to DH-consumption - we demonstrate a high level of commitment to our partners.” Tapani Bastman, MD, TSE “When the plant is fully operational, the percentage generated by biofuels will be between 30-40 percent, however we hope to increase the share of biofuels to 60-70 percent. The remaining share will be generated by coal or peat,” says Bastman.

The CFB-boiler (Circulating Fluidised Bed) itself has been designed to convert 100 percent biodegradable materials. Fuel oil (or later LNG as an option) will be the starting fuel for the boiler.

“The advantages of the CFB technology certainly outweigh its limitations. The process is very flexible for multi-fuel purposes and

with the right investment in R&D, the technology is predicted to bring further benefits through economical usage of even more challenging forms of biofuels,” Bastman surmises.

• Total capacity: 200MW district head, 50 MW process steam and 150 MW co-generation power • Estimated cost: €260 million • Outsourced project managers: EPCM-Consultant Pöyry Finland Oy • Manufacturing partners: Valmet Power Oy, Siemens Oy and Raumaster Oy • Operation date: Autumn 2017

Optimisation

Key to TSE’s success in the last year has been optimising its current production capacities rather than competing and increasing capacity. “By this I mean we have to ensure that products are fully optimised and are able to cope with a variable heat load, while also taking into consideration the price of power and the competitiveness of our product on the open market.

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TSE headquarters

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GWh/a Amount of process steam energy Fortum receives for local industries

“Our Naantali power plant, Oriketo bioboiler, waste boiler and heat pump units are a complex system for heat production and are challenging to optimise. We have developed our own program to optimise our systems on an hourly basis, taking into consideration estimated heat load, estimated fuel prices, estimated power price and energy taxation. Calculations are made each day and we found the most important areas to be the hourly DH-consumption and power price. However, fixed costs are an important issue too and a strict balance of tight cost control versus streamlining the O&M services is therefore another key component to our success,” Bastman states.

Not only have the facilities been optimised, but the company has found the strong support of its shareholders to be a big contributor to the HR and training side of the business. Due to the company’s role as a base energy producer for the local area, it is not possible for TSE to have any expansion plans. However, this results in a stronger focus on the timely delivery of projects while remaining within the budgeted cost.

This strategy is supported by TSE’s healthy relationship with Fortum Power and Heat, who own 49.5 percent of the company. The two companies work harmoniously together to agree targets for the coming year and TSE also outsources training via Fortum. “In my opinion, a long term partnership with yearly targets agreed upon together is vital to developing O&M functions and is a learning process in itself,” Bastman adds.

With a target to boost the share of renewables from 12 percent up to 50 percent via its projects, TSE is on target to boost the total fuel consumption to 4,250 GWh at the Naantali power plant this year.

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GWh/a Current amount of DH-supplied energy to Turku Energia

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RAUMASTER

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aumaster Oy, founded in 1984, is a renowned supplier of advanced material handling systems and equipment and today the company is regarded as a global leader in its line of business.

Raumaster continually strives to ensure the utmost reliability and quality of its products and after sales services. With a turnover of approximately 100 MEUR, the company employs nearly 300 professionals to ensure that the highest standards are maintained.

Raumaster’s success stems from its ability to supply complete deliveries.

We deliver material handling systems for the wood processing industry and power plants and our primary objective is customer satisfaction in life long standing customer relationships.

For more information about Raumaster, please visit

www.raumaster.fi

SOLID PERFORMANCE When it comes to material handling in the energy industry, we know how to deliver the best possible systems for your individual needs. As the world leader in our line of business, we at Raumaster are able to combine our special knowledge, expertise and experience to boost your performance.

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www.raumaster.fi

Receiving systems Screening and crushing Storages and reclaiming Fuel feeding systems Ash handling systems Pneumatic conveying systems Additive and bed material feeding systems Conveyors for causticizing and lime kilns Conveyors for recovery boilers Dust and concentrate handling in smelting plants

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Turun Seudun Energiantuotanto Oy (TSE) Satamatie 16, FI-21100 Naantali, Finland Tel: +358 40 5778122

www.tset.fi