Juha Poikola Biofuel procurement manager Pohjolan Voima Oy pohjolanvoima.fi
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Transcript of Juha Poikola Biofuel procurement manager Pohjolan Voima Oy pohjolanvoima.fi
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Juha Poikola
Biofuel procurement manager
Pohjolan Voima Oy
www.pohjolanvoima.fi
Finnish experiences in designing and funding the renewable energy projects
International fair for energy, automation, lighting technology and communication systemsTallinn, Estonia in March 10. - 12. 2004
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Yhteensä 23008 GWh
Pohjolan Voima’s electricity supply 2003
Nuclear 35%
Biomass 8%
Natural gas 6%
Import 14%
Nordpool 7%Hydro 5%
Coal 24%
23 TWh
27% of the Finnish markets
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
• New nuclear power unit - 1600 MW> 3 billion euros
• Bioenergy programme - 550 MWe new bio-capasity- 620 million euros
• Windmill programme- 8 new units
• Waste to energy programme1 MW operating80 MW under preparation
Pohjolan Voima’s activities
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s bioenergy programme
• seven new power plants 1999-2004
• 550 MWe, 620 MEUR investments (85% of the new biocapasity in Finland)
• 500 000 solid m3 of forest chips
• 4000 ha agro crops, reed canary grass
The best Renewable
Energy Partnership in EU 2003
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s biopower plants(ownerhip from 50-100%)
MWe MWh CompletedVaskiluodon Voima, Seinäjoki 125 100 1989Vieskan Voima, Ylivieska 6 15 1990Alholmens Kraft 265 210 2001Kokkolan Voima 20 50 2001Kymin Voima 76 180 2002Jämsänkosken Voima 46 130 2002Järvi-Suomen Voima, Ristiina 10 65 2002Järvi-Suomen Voima, Savonlinna 17 53 2003Wisapower 140 400 2004ALTOGETHER 705 1203
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s biomass procurement area
PIETARSAARI
JÄMSÄNKOSKI
SEINÄJOKI
KUUSANKOSKI
RISTIINA
YLIVIESKA
SAVONLINNA
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s use of biomass
Use of forest chips and agrobiomass
0,0
2,04,0
6,0
8,0
10,012,0
14,0
16,0
2001 2002 2003 2004 2005
TWh
PeatWood
0
0,2
0,4
0,6
0,8
1
1,2
1,4
2001 2002 2003 2004 2005
TWh
Agrobiomass
Forest chips
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s bioenergy programme – R&D
1) Logging residue bundler
• developed in parallel with Alholmens Kraft’s investment 1999
• national breakthrough year 2002
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s bioenergy programme – R&D
2) Use of stumps
• started in parallel with Jämsänkoski’s power plant investment 2001
• prevents the spreading of rotting
• fast growing volumes
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s bioenergy programme – R&D
3) Multifunction harvester for thinning and clearing
• high potential in young forests• cost-effectiveness is improving
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s bioenergy programme – R&D
4) Reed canary grass (Phalaris Arundinacea)
• 4000 hectares target• ”an environmentally friendly
farming product with unlimited demand”
• profitability need to be improwed
photo:Maaseudun Tulevaisuus
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Windmill programme
• 8 new units in 2003
• feasibility study for 300 MW off-shore windmill
• ownership in WindWind
- WWD1 unit ready
- WWD3 unit during 2004
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Waste to energy programme(together with Vapo and VTT)
Kattilanpääpolttoaine(kivihiili)
Raakakaasu
Kierrätys-polttoaineenvastaanotto
Kaasutin
Jäähdytys
Syöttösiilo
Pohjatuhka
Suodin-tuhka
REFKA-KAASUN VALMISTUS JA KÄYTTÖ
Kaasunpuhdistus
REFKA-
kaasu
Kierrätys-
polttoaineHiilikattilalaitos
Kaasutusprosessi
Kaasutin
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima’s operating principle
non-profit making company = owners have the right to get energy at cost
% of ownership = % of the production
enables our owners to
1) outsource energy production
2) maintain control
3) get energy with low price, without margin
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Funding renewables
Environmentally sound and sustainable project
render possible to get partial financing from EIB, EBRD, NIB
commercial banks appreciate these institutes
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Pohjolan Voima (PVO) has good rating => low margins
viable investments
size, 670 MEUR annual turnover
healthy equity-to-assets ratio
non-profit making operating principle
strong owners
references => projects carried out successfully
Funding
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
• PVO is not using Project Finance, daughter company takes loans/leases from financial institutions
• typical financing structure:
20% equity capital
80% borrowed capital
• typical ownership structure
>50% PVO
<50% other than PVO owners
one majority owner responsible for the project
Funding
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Case WinWinD, WWD3Capasity 3 MWTotal investment cost 3 400 000 MEURInvestment aid 35 %Net investment cost 2 210 000 MEUR Equity (20%) 442 000 MEUR Loan (80%) 1 768 000 MEURInterest rate 5 %Write off period 20 yearsCost of capital 177 336 €/yearOperation & maintainance 51 000 €/year (1,5% of the investment)Annual production (2300 h) 6 900 MWProduction costs* 33 €/MWhTax benefit -6,9 €/MWhNet production cost* 26
* costs does NOT include 1) interest to equity capital 2) administration cost
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Case WinWinD, WWD3
€/MWh €/a
Net production cost 26 228 33610% interest to equity capital 6,4 44 200Administration 1,4 10 000Altogether 34 282 536
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Tallinn, 12.3.2004Juha Poikola
Pohjolan Voima
Järvi-Suomen Voima Oy, Savonlinna
• 80 MWth biofuel fired BFB• started production in 2003
Finland is a great country to learn about renewables!