Indo Mines: Power plant design for iron facility project near completion
Friday, April 29 2016 - 08:00 AM WIB
ASX-listed Indo Mines Ltd said on Friday Poyry Energy Ltd has nearly completed a study to define the conceptual design for a 100 MW coal-fired power plant to support the company?s planned iron making facility in Kulon Progro, Yogyakarta.
?Following analysis of the plants? basic requirements, several options for the power plant configuration were prepared and evaluated. For the purposes of comparison of the options? different capital cost and variable operating costs, levelised cost of electricity was calculated for each option and the best option was identified also considering the requirements for high availability of the captive power plant. The solution with two separate trains (2 x 50 MWe), utilising two CFB boilers and two condensing steam turbines was chosen,? Indo Mines said in a statement.
It further said that fuel quality information for the PT Triaryani coal source in South Sumatra has been reviewed and the performance coal composition has been defined, as well as the best and the worst coal for sizing different power plant systems.
The technical specifications for main equipment was prepared based on the chosen concept and a request for budgetary offer was sent out to agreed potential suppliers. Auxiliary power plant systems are described and the solution for key auxiliary systems such as common coal handling system or sea water intake is elaborated upon. Cost estimation has been performed based on Poyry?s own experience. In the next phase, the report will be updated and verified based on the information collected from potential technology suppliers for main equipment.
Cost estimation has been performed considering a ?turn-key EPC? approach and total EPC cost of US$193.3 million was estimated, the company said. The operation and maintenance (O&M) costs were estimated to be approximately $26.8 million per year. Considering this O&M costs and the produced electricity the cost of electricity production was calculated to be $33.6/MWh (without including the investment cost and any time related cost escalations).The levelised cost of electricity was calculated according the VGB guidelines and with the assumed discount rate and escalation rates for fuel price it was calculated to be US$70.34/MWh. Sensitivity analysis of this calculation has been performed.
Meanwhile, In 2015, geo-electric studies were conducted in which a third party consultant measured 150 geo- electric points within a radius of 2, 5, and 10 kilometres from the Karang Wuni plant site to observe the presence of ground water, Indo Mines said.
In order to assist Poyry in their design of the water in-take/out-take system for the power plant a bathymetric survey of the beach line along the contract of work area was completed. No significant issues were identified that would inhibit the installation of the in-take/out-take system.
Indo Mines plans to become the lowest cost pig iron producer in the world and has already manufactured the first iron ingots from iron sand concentrate using Outotec Ausiron? smelting process.
Editing by Reiner Simanjuntak