Combined Cycle Gasification
Babcock & Wilcox Vølund A/S is facing an eco-friendly energy adventure in Italy
Babcock & Wilcox Vølund A/S has signed a groundbreaking contract with Advanced Renewable Energy Ltd. concerning development, construction and implementation of up to 25 decentralized and environmentally sustainable small scale power plants in Italy. The power plants are based on R&D, knowledge and eco-friendly technologies within Combined Cycle Gasification, which are developed by Babcock & Wilcox Vølund A/S. Globally this new type of power plant has an estimated potential of several thousands – hereof more than 200 in Europe.
The contract with Advanced Renewable Energy Ltd. has a value of up to 300 million EURO throughout the contract period. The first decentralized, small scale power plant is scheduled for operations in the first quarter of 2010. With this contract and the launch of the new technologies, Babcock & Wilcox Vølund significantly contributes to improving the environment in Italy and to the production of efficient and eco-friendly energy based on wood chips. This contract could mark the beginning of an industrial adventure for Babcock & Wilcox Vølund A/S comparable only with a few companies in the world, which are specialized in the production of environmentally friendly energy.
Advanced Renewable Energy Ltd. has chosen Babcock & Wilcox Vølund A/S as their business partner and supplier of the new power plants based on the advanced gasification technology and very efficient and high utilization in the power production process. On a global scale this technology is unprecedented for this type of Combined Cycle Gasification plants. The power plants are designed to produce 4 MW of electricity and 5 MW of heat. With the new technology from Babcock & Wilcox Vølund, the owners of the new power plants in Italy will have a number of advantages in producing environmentally friendly energy with less waste heat - partly due to the specific climatic conditions in Italy. In addition, the necessary, natural resources for production of environmentally friendly energy in Italy are plentiful due to the accessibility of wood chips.
Moreover, the Italian Environmental and Energy Authorities issue so called ‘Green Certificates’, which are awarded to companies who use this type of eco-friendly energy. This gives the companies access to cheaper energy, to improve their environmental profile and to act responsibly from an environmental, social and economic point of view.
Energy at a price which is four times higher
By using the brand new Combined Cycle Gasification technologies from Babcock & Wilcox Vølund, which provide a significant reduction of waste heat, the owners of the new power plants will be able to achieve an electrical efficiency of approximately 45 %. This is remarkably more than for equivalent plants of the same size. At the same time the price of the eco-friendly energy in Italy is about 0.26 Euro per KWh which is four times more than the settlement price for energy in Denmark. Thus, the owners of the new power plants expect a quick and positive return on investment. Therefore, Advanced Renewable Energy Ltd. plan to establish new, standardized Babcock & Wilcox Vølund plants at as many locations as possible in the near future- as the new technologies for environmentally friendly energy production will be able to provide a weightycompetition to energy produced by wind mills.
Advanced Renewable Energy Ltd. with Danish and Italian investors
Advanced Renewable Energy Ltd. in Italy is owned by Baltic Group and a number of professional Danish and Italian investors. Baltic Group has already profiled itself to be one of the leading international investors in renewable energy – including extensive investments in wind mills.
