Metso wins an order for the eighth biomass-fuelled modularised CHP-plant to Germany

Metso Corporation’s press release on August 10, 2011 at 4:00 p.m. local time

Metso will supply Heizkraftwerk Zwickau Süd GmbH & Co. KG with a modularised biomass power plant for combined heat and power production (CHP) in the municipality of Zwickau in Germany. The CHP plant will be delivered by the Metso-Wärtsilä joint venture MW Power. The delivery encompasses the complete turn-key solution including not only the entire plant but also all on-site installations and training. The value of the order is about EUR 20 million and the order is included in Energy and Environmental Technology’s Q2, 2011 orders received.

The plant will connect to the grid in late 2012. Forest residues and wood based landscaping (Landschaftspflege) material will be used for fuelling. When in operation, the plant will produce a maximum of 10 megawatts (MWth) of district heat for the Zwickau municipality area and a maximum of 5 MW of electricity for the power grid.

“Through this investment, we will not only secure the production of district heat for our town but will also reduce our dependence on ever rising oil and gas prices. We are also very optimistic that the price paid for the district heat can be lowered from today’s level”, says Volker Schneider, Managing Director of ZEV GmbH. “We look forward to working with such an experienced supplier as MW Power on the construction of this biomass-fuelled plant”, adds Olaf Lüdemann, Managing Director of CEE.

The plant’s commercial viability is supported by the German Erneuerbare-Energien-Gesetz (EEG), a law that provides fixed feed-in tariffs for electricity produced from renewable sources and secures the payback period of the investment. The project has a significant impact on the local economy through the use of local labor and subcontractor network.

This will be the eighth delivery of a such complete modularized CHP plant to Germany by MW Power. “The new project gains all benefits of modular design and standardization”, says Olli Taimisto, Sales Director for Biopower plants. ”Our easily tailored modularized products and our on-time deliveries reduce project risks to minimum and the customer can accurately calculate profitability of the project. Our local service organization will support the client during commercial operation of the plant. These were amongst things that secured the deal for us,” Olli Taimisto says.

Biopower solution and technology

MW Power’s biomass-fuelled Biopower plants are practical solutions to the need for renewable energy supply with minimum environmental impact. The plants are highly modular, being based on well-proven standardized components that can be delivered and installed quickly. They plants are also highly automated, enabling unmanned 24/7 operation. According to customer’s needs, MW Power provides a comprehensive lifecycle service and maintenance package to complete the turn-key delivery.

The Biopower plants incorporate either patented BioGrate or BFB combustion technology, both designed for efficient combustion of moist wood fuels, such as forest residues with high combustion efficiency and low NOx and CO2 emissions. Besides Germany, Biopower plants are in operation in Finland, Sweden, Belgium, Czech Rep, Belarus and Ireland.

By producing energy close to where it is consumed based on local renewable fuel resources – is crystallized in MW Power’s business idea “Local Energy Solutions”. Local decentralized generation of both electricity and heat in the same plant offers significant environmental advantages and is the most efficient way of reducing green house gases to atmosphere. This kind of a CHP-plant operates with a 24/7 concept regardless of weather conditions throughout the year.

Heizkraftwerk Zwickau Süd GmbH & Co. KG, is owned by Hamburg based investor CEE (Conetwork Erneuerbare Energien Holding GmbH & Co. KGaA) at 60 percent and Zwickauer Energieversorgung GmbH (“ZEV“) at 40 percent, being Zwickau’s local utility that manages energy supply for the municipality.

MW Power, Metso-Wärtsilä joint venture, provides medium- and small-scale power and heating plant solutions for sustainable energy generation, focusing on flexible utilization of local renewables, as well as innovative technologies and service capabilities.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 29,000 employees in more than 50 countries.

For further information, please contact: Pasi Rantonen, Director, Biopower product line, MW Power, tel. 358 40 544 8328