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FEASIBILITY STUDY FOR COMBINED CYCLE CHP DISTRICT HEATING PLANT

Ziel

To evaluate, for a CHP/DH coal gasification combined cycle power plant for the City of Sheffield, the following:
- the financial viability of the project;
- alternative financial and corporate structures for the project;
- the availability, terms and conditions of potential funding;
- to recommend steps to be taken to secure financial project implementation.
A real project rate of return for the full project has been estimated at 8.2% for the Full Scheme (although this is heavily conditioned by a separate analysis of the CGCC plant) and 6.9% for the Core Scheme.
For reasons to do with its scale, purpose and technical development, the Full Scheme was not assessed in terms of commercial exploitation.
The potential for heat load demand arising out of CHP cost savings may be accepted. However, the extend to which this potential may be commercially exploited requires clearer underpinning by indicative commitments. In turn, this calls for refinement of system and network design, of capital and corporate structure, of tariff policy, of draft contracts and for specific product marketing.
It was concluded that while CHP technology offered the prospect of energy savings, private sector finance will not be attracted to the Core Scheme, although the influence of factors such as reduced rate charge would, in principle, be more encouraging. The take-up of heat from the Core Scheme is also too uncertain for an accurate evaluation of basic project economics to be undertaken.
Further technical and commercial development work would be necessary whether public or private sector investment was at issue. It is of paramount importance that the technical and market surveys be verified by establishing the timing, size and quality of potential purchase commitments.
The feasibility study recommended that the 'City' refine more closely its own objectives, which may also call for policy decisions in relation to the Core Scheme, in particular, commercial exploitation, social objectives, public ownership and control, employment, the first stage towards full district heating and resources available, including EEC or national grants.
It also recommended preparation and implementation of a specific project development programme. Leading areas where refinement and/or definition are called for include:
- technical design, engineering and costing for any revised heat load/electrical output configuration; market and project definiting;
- firm parameters for tariffs etc;
- allocation of development, commissioning and operational responsabilities;
- development of financial and corporate structures;
- indications of commitment from customers;
- continuing analysis of all project risks;
- critical path schedule, identifying interim key steps.
An appendix to the feasibility study, pointed out that there are wider factors which should not be ignored, including alternative technologies such as in-house CHP via totem system, night storage radiators combined with improved insulation and possibly more flexible local tariff strategies.
A reluctance to pioneer was also observed, and issues remaining open to technical doubt such as adequate water remaining open to technical doubt such as adequate water temperature.
The Full Scheme is structured to accomodate the CHP capacity and heat distribution network for the full potential high density heat load of 380 MW. If the Core Scheme could be proven to be a commercially viable project, and the Combined Gasification Combined Cycle (CGCC) power station can produce low cost heat, and the extension of the district heating system to high density heat load sectors can be justified, then the principal benefits in terms of district heating could be achieved. These would include energy conservation, avoidance of single fuel dependency and the distribution of low cost heat on a commercially viable basis, to enable consumers also to benefit from cost savings. The CGCC station is fundamental to development of the Full Scheme, as it provides high electrical efficiency as well as reject heat at a temperature level appropriate to district heating, while complying with emission standards. Two such units would ultimately provide a send-out capacity of 160 Mw electricity and 150 Mw hot water for district heating.
As the first stage of a fully developed and integrated CHP Scheme, the Core Scheme will supply heat mainly to local authority housing, commercial and institutional buildings. This heat will initially be generated by an existing domestic refuse-fired incinerator. The connected heat load is 125 Mw. The station will be extended to include coal-fired fluidised bed boiler capacity.
Four existing, large boilerhouses may also be adapted to provide peak and standby capacity. Th ee heat distribution network has been selected to give the lowest cost solution for the Core Scheme, but with consideration to Full Scheme requirements.

Wissenschaftliches Gebiet (EuroSciVoc)

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Koordinator

SHEFFIELD CITY COUNCIL
EU-Beitrag
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TOWN HALL
S1 1UJ SHEFFIELD
Vereinigtes Königreich

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