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Payments for the Energy for Waste plant contract

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1240/5(7030)

WRITTEN QUESTION TO THE MINISTER FOR TRANSPORT AND TECHNICAL SERVICES BY DEPUTY M.R. HIGGINS OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 17th JULY 2012

Question

  1. How much of the £99,414,332 paid out to date to contractors under the Energy for Waste (EFW) contract has been paid in Euros and what is the final cost of failing to hedge this sum?
  2. How much of the £5,482,715 to be paid to the contractor once the performance and availability tests have been completed is to be paid in Euros?
  3. What are the performance and availability standards/benchmarks laid down in the EFW contract?
  4. Have the contractors successfully met the aforementioned standards/benchmarks to date?
  5. Using the table contained within his response to question 6956 on 26th June 2012, would the Minister advise–
  1. the amount of electricity consumed by the EFW plant for its own consumption/operations on a monthly basis;
  2. the value in pounds sterling earned by the plant for electricity sold to the JEC on a monthly basis;
  3. the different types and amount of ash produced through incineration on a monthly basis?
  1. Have any problems occurred at any time over the dual use of the JEC chimney?
  2. Would the Minister detail what problems, if any, have been experienced to date with the operation of the EfW plant?

Answer

  1. The £99,414,332 comprises payments of £33,996,749 and 72,887,170.

With regard to the cost of initially failing to hedge the euro, the foreign currency financing is a matter for the Minister for Treasury and Resources and the Minister suggests that this question is directed to the Minister for Treasury and Resources.

  1. The £5,482,715 comprises of £1,826,853 and 4,073,300.
  2. The performance criteria for the plant are somewhat complicated, however to summarise, the plant is designed to process up to 105,000 tonnes of municipal waste per year at a Nett Calorific Value of 9.2 MJ/kg. The plant is designed to operate with wastes with a Nett Calorific Value of between 7.5 MJ/kg and 14 MJ/kg.

The plant availability test stipulates that the plant must be available to operate for 7,450 hours per year. This will be calculated from the 365 days following the issue of the Performance Test Certificate.

A summary of the measured performance indicators specified in the contract of the 14th November 2008 is included in appendix 1.

  1. The performance tests were completed on Monday 2ndJuly 2012. The data from these tests is presently being analysed and the results will be reviewed and discussed with CSBC (Jersey) Limited. As the results of these tests are subject to the contract agreement the Minister is unable to make further comment on this matter until the results have been agreed by all parties.
  2. (i)  the amount  of  electricity  consumed  by  the  EFW  plant  for  its  own consumption/operations on a monthly basis;
  1. the value in pounds sterling earned by the plant for electricity sold to the JEC on a monthly basis;
  2. the different types and amount of ash produced through incineration on a monthly basis?

Waste  Exported  EFW Site  Bottom  FGT Processed  Electricity  Electricity Usage  Ash  Residue

Tonnes  KWH  KWH  Tonnes  Tonnes

Jan-11  994  0  *666,666  39  0

Feb-11  5,027  0  666,666  747  275

Mar-11  3,677  919,680  666,666  698  138

Apr-11  5,896  1,313,116  794,512  1,134  231

May-11  4,674  1,577,308  945,072  837  255

Jun-11  5,030  2,420,847  945,072  981  206

Jul-11  5,280  2,337,974  945,072  969  152

Aug-11  8,850  3,768,930  945,072  2,188  275

Sep-11  7,089  3,569,562  1,000,888  1,997  305

Oct-11  6,773  3,982,166  1,052,963  1,440  248

Nov-11  7,328  4,206,740  871,310  1,795  295

Dec-11  2,268  836,962  616,807  505  72 Jan-12  7,631  4,338,835  938,472  1,719  255 Feb-12  5,528  3,169,699  767,567  1,155  213 Mar-12  3,199  2,083,491  599,079  571  144 Apr-12  6,053  3,166,506  837,704  963  139 May-12  4,135  2,177,786  722,872  1,134  136

Total to end of

May  89,432  39,869,603  13,982,462  18,872  3,337

*The figures in grey are from the commissioning period and are estimated figures.

With regard to (ii) "the value in pounds sterling earned by the plant for electricity sold to the JEC on a monthly basis".

The Transport and Technical Services Department has contacted Jersey Electricity plc and they have confirmed the sentiments expressed in the Minister's original answer to question 6596 provided in June. The value of electricity earned by the plant for electricity sold to Jersey Electricity plc is based on the European power markets and is reviewed on an annual basis. The details of the agreement are commercially sensitive and public disclosure would result in a breach of the confidentiality clause of the contractual agreement between the Jersey Electricity Company and the Minister for Transport and Technical Services and The Minister for Treasury and Resources.

  1. There have been no problems with the dual use of the JEC chimney.
  2. The plant has and is operating successfully. There have been minor problems which have occurred during the commissioning and subsequent handover period, however this is quite normal for a plant of this size and complexity and the problems are being resolved by the contractor CSBC (Jersey) Limited and the Transport and Technical Services staff. In general terms if problems are caused as a result of design or construction defects then CSBC (Jersey) Limited is contractually obliged to resolve the problems at their cost.

Appendix 1

 

PERFORMANCE INDICATOR

Units

Guaranteed Performance Level

Rejection Level

Boiler/Grate Values are for each thermal treatment and boiler stream unless otherwise specified. Test requirements are specified in Schedule 16, unless otherwise stated.

 

 

 

1)  Flue  gas  temperature  maintained  for  at  least  two seconds after the last injection of combustion air and in the presence of sufficient oxygen to demonstrate WID compliance for all points within the firing diagram. To be demonstrated at the design stage by CFD modelling and during the Performance Tests to the satisfaction of the Project Manager

°C

850

<850

2)  Maximum unburnt matter in combined bottom ash and boiler ash, referred to dry weight of the material as specified  in  the  Waste  Incineration  Directive EU/2000/76.

  1. as  Total  Organic  carbon  (excluding  elemental carbon), or
  1. as Loss On Ignition

The guarantee is met if one criterion is met.

% w/w

% w/w

3.0 5.0

>3.0 >5.0

Flue Gas Treatment Plant – Unless otherwise stated, the Guaranteed Performance Levels below shall be achieved with each boilers firing at 100% MCR on Design Waste.

 

 

 

3)  Maximum emission concentrations of pollutants at the stack as specified in the Waste Incineration Directive (EU/2000/76) under the full range of firing conditions shown on the firing diagram.

 

any limit

specified in WID

>any limit specified in WID

Noise

 

 

 

4)  Compliance with the external noise limits prescribed in the Planning Conditions.

 

compliance

non- compliance

 

PERFORMANCE INDICATOR

Units

Guaranteed Performance Level

Boiler/Grate Values are for all thermal treatment and boiler streams in operation at 100% MCR unless otherwise specified.

 

 

1)  Guaranteed Waste throughput at a net calorific value of between 7.5 and

8.5 MJ/kg (averaged over a 4 hour period) (100% waste throughput line on Firing Diagram)

t/h

16.1

2)  Guaranteed heat release from the combustion of waste at a net calorific value between 9.2 and 14.0 MJ/kg (100% thermal input line on the Firing Diagram) at the reference conditions given in 3)i) to 3)ix) below.

MWt

38.4

3)  Guaranteed steam flow rate at turbine inlet at the reference condition given in i) to viii) below, 100% MCR (Steam flow to the vacuum ejectors

included; turbine in operation)1

- 100 to 4,000 hours after manual boiler clean

- 8,000 hours after manual boiler cleaning

t/h t/h

47.5 47.1

i)  Guaranteed Steam temperature at turbine inlet

°C

397 5

ii)  Guaranteed Steam pressure at turbine inlet

bar-a

43 1

Reference design conditions (items iii. to ix. not guarantees)

 

 

iii)  Feedwater temperature at economiser inlet

°C

130

iv)  Primary air preheat temperature

°C

150

v)  Secondary air preheat temperature

°C

150

vi)  External ambient air temperature

°C

10

vii)  External ambient air humidity

%

80

viii) Air preheater heat input from turbine extraction steam

kW

1740

ix)  Flue Gas temperature at exit of boiler economiser / entrance to final economiser

°C

180

Flue Gas Treatment Plant – The Guaranteed Performance Levels are for all streams  operating  at  100% MCR  1  with  raw  gas  emission  concentrations

according to section 5.2.2 of Part B205  

 

 

4)  Maximum consumption of urea prills

kg/h

35

5)  Maximum consumption of hydrated lime (95%) per stream

kg/h

185

6)  Maximum consumption of activated carbon

kg/h

10.7

7)  Maximum APC Residue production

kg/h

550

8)  Maximum consumption of towns water for flue gas treatment without SNCR

- 100 to 4,000 hours after manual boiler clean

- 8,000 hours after manual boiler cleaning

kg/h kg/h

0 0

1 100% MCR at Design Point 1 per Part 201 of the specification and subject to the variation in NCV of waste away from Design point

 

PERFORMANCE INDICATOR

Units

Guaranteed Performance Level

Bulky Waste Facility

 

 

9)  Guaranteed Bulky Waste throughput totalled over an 8 hour operating day.  

t/d

200

Steam  Turbine  Generation  Set  -  Values  are  for the  single turbine  with combined  steam  supply  from  any  combination  of  operating  boilers.  Test requirements and procedures are specified in Schedule 16.

 

 

10)  Gross power production measured at the generator terminals in fully condensing mode at 100% MCR steam flow and reference conditions after 100 to 4000 operating hours after manual boiler cleaning:

- two boilers operating at 100% MCR

- one boiler operating at 100% MCR

with the following guaranteed steam conditions at the turbine inlet stop valve:

Steam flow:

- two boilers operating at 100% MCR

- one boiler operating at 100% MCR

Steam temperature at turbine inlet

Steam pressure at turbine inlet

Ambient sea water temperature (condenser)

12)  Auxiliary power consumption of EfW plant with all units operating at 100% MCR load and all normal equipment in operation. Without Step-up transformer losses and without Bulky Waste Facility of sewage sludge system in operation. (Hourly averaged value)

MWe MWe

kg/h

kg/h °C bar-a °C kW

10.240 4.400

47,500

23,200 397 5 43 1 12 1275

13)  Auxiliary power consumption of Bulky Waste Facility averaged over 8 hours daytime operation processing 200 tonnes of material ( Hourly averaged value)

kW

175

  1. Availability – the Available hours of the complete Plant in the first year of operation after Take Over
  2. Guaranteed hourly vehicle throughput for the BWF

(Tested in accordance with the draft procedure set out in Appendix B of this schedule)

h

7,450 45

 

PERFORMANCE INDICATOR

Units

Guaranteed Performance Level

Action Limit

Waste Feed Crane

 

 

 

1)  Minimum continuous waste feeding rate of single waste feed crane feeding all streams operating at MCR with the bunker nearly empty, expressed as a percentage of the Guaranteed  Waste  Throughput  at  the  100%  waste throughput line on the firing diagram.

%

200%

190%

Boiler/Grate – Values are for each incinerator and boiler stream unless otherwise specified. Test requirements are specified in Schedule 16 unless otherwise stated.

 

 

 

2)  Maximum  flue  gas  temperature  into  superheater convective pass (average for any horizontal traverse) at 100% MCR.

°C

640oC

650oC

3)  The  maximum  average  flue  gas  temperature  into superheater  convective  pass  (measured  at  nine  equi- spaced  points  in  the  duct  according  to  preliminary procedure in Appendix A of this Schedule).

°C

625oC

640oC

4)  Maximum moisture content in bottom ash delivered to ash containers

% w/w

20%

21%

5)  Maximum concentration of ammonia corrected to flue gas reference under all firing conditions on the firing diagram.

mg/m3

10

>10

6)  Boiler  and  Grate  Continuous  Operation   Minimum number  of  operating  hours  of  a  stream  operating  at 100% MCR  between  outages  for  manual  cleaning  or maintenance (excluding 1 short short down period for inspection purposes).

hours

8,000

<8,000

7)  Maximum speed of ID fan expressed as percentage of the synchronous  speed  under  the  following  reference operating conditions:

%

84%

90%

a)  Boiler firing rate as percentage of Guaranteed Heat Release

%

110

 

b)  Oxygen content at boiler exit as percentage dry gas

% v/v dry

8.7

 

c)  FGT in continuous operation with all compartments on line and normal reverse jet cleaning as determined by differential pressure control.

 

 

 

d)  Boiler operating hours 100-4000 after manual cleaning

 

 

 

8)  Minimum live steam temperature with at least 1,000 boiler operating hours since last manual boiler cleaning.

- between 90% and 102% of MCR thermal load

- between 60% and 90% of MCR thermal load

°C °C

400 ± 5

From 360 to 400 ± 5

 

 

PERFORMANCE INDICATOR

Units

Guaranteed Performance Level

Action Limit

9)  Flue Gas Temperature at economiser exit / entrance to final economiser

 

 

 

a)  At 100% MCR load, 100 to 4,000 boiler operating hours after manual cleaning

°C

200

210

b)  Maximum  temperature,  8000  operating  hours  after manual boiler cleaning.

°C

200

210

c)  At 70% MCR load after 1,000 boiler operating hours.

°C

160

150

d)  Minimum at start of run, boiler clean, maximum 100 operating hours after manual boiler cleaning.

°C

150

140

10)  Flue Gas Temperature at entrance to Stack Flues

°C

190oC

180oC

Steam Turbine Generation Set

 

 

 

11)  Steam swallowing capacity of steam turbine

t/h

105% of all boilers at 100% MCR steam flow

105%

Start-up  Time  -  Test  requirements  are  specified  in

Schedule 16

 

 

 

12)  Maximum  time  to  start  one  boiler  and  associated systems from cold to full load (without unacceptable thermal stress):

hours

10

16h 30min

Ash Handling Plant

 

 

 

13)  The grade of metal separation achieved by the magnetic separator.

% (wt)

80

90 (% of the guaranteed Performance Level value)

Bulky Waste Facility

 

 

 

14)  The Maximum Bulky Waste Throughput

kg/hr

25 000

90%

15)  Minimum throughput of a Shredder

kg/hr

30 000

90%

16)  The capacity of the conveying equipment at Maximum Bulky Waste Throughput

%

130

90%

17)  The grade of metal separation achieved by the magnetic separator

%

80

90 (% of the guaranteed Performance Level value)

Noise - Test requirements are specified in Schedule 16.

 

 

 

18)  Maximum noise emissions

 

 

 

 

19)  The maximum noise level from any one individual item of equipment measured at a distance of 1 m in any direction from the noise source with the exception of the following items of equipment:

dB(A)

80

80

 

PERFORMANCE INDICATOR

Units

Guaranteed Performance Level

 

Action Limit

Steam turbine

dB(A)

100

 

100

Steam turbine bypass valves

dB(A)

100

 

100

Mechanical rapping equipment

dB(A)

95

 

95

Bag filter cleaning system

dB(A)

100

 

100

Boiler feedwater pumps

dB(A)

90

 

90

Bottom ash conveyor.

dB(A)

90

 

90

Fire water pump

dB(A)

90

 

90

b)  The  maximum  noise  level  in  general  working  areas during operation of the Plant.

dB(A)

85

 

85

c)  The maximum noise level in following separate rooms / enclosures in which hearing protection is mandatory:

Turbine Hall Feed water pump room

dB(A) dB(A)

100 90

 

<100 <90

Vehicle Throughput

 

 

 

 

17)  Maximum hourly vehicle throughput for the weighbridge

 

80

 

< 80

18)  Guaranteed hourly vehicle throughput for the EfW

 

30

 

< 30