Pilot project of installation of a power park based on the boiler house of JSC “Sinyavinskaya Broiler Plant” will be expanded. The agreements on reformatting the initial arrangements have been reached

New agreements with the management of JSC “Sinyavinskaya Broiler Plant” have been reached on the construction of two new cogeneration power parks in Leningrad Region and the Republic of Karelia, with a power of 2MW (for electricity); 2.4 MW (for heat) each.

Agreements have been reached between JSC “Sinyavinskaya Broiler Plant” and Distributed Generating Company LLC (DGC LLC) to change the scale of the pilot project of reconstruction and re-equipment of the boiler house and two new projects.

The new format of the project involves the installation of a cogeneration power park based on the boiler house, including microturbines MT250/MT333 manufactured by FlexEnergy Inc., with the gross installed power of 3MW (and thermal power of up to 3.6MW in cogeneration mode), as well as an increase in the heat production capacity by 5.2MW (construction of an additional boiler house).

Background

JSC “Sinyavinskaya Broiler Plant” (full name – Closed Joint-Stock Company “Sinyavinskaya Broiler Plant” named after the 60th Anniversary of the USSR) – produces poultry, eggs, semi-finished products.

JSC “Sinyavinskaya Broiler Plant” is located in the village Priladozhskoe, Kirov District, Leningrad Region (about 58 km to the East of St. Petersburg), which was built in the late 1970s concurrently with the construction of the poultry farm.

JSC “Sinyavinskaya Broiler Plant” is the largest producer of eggs in the Northwest of Russia, owns more than one-third of the egg market in St. Petersburg and Leningrad Region. It is the largest agro-industrial complex in Russia and Western Europe by commodity output.

In 2012 JSC “Sinyavinskaya Broiler Plant” produced 1 billion 174 million eggs and became the industry leader in Russia.

JSC “Sinyavinskaya Broiler Plant” is a leading company headed by N.O.Melnikov, a fast-growing and the largest agro-industrial complex in Europe.

The success of the enterprise is mainly based on the harmonious and rational combination of rich traditions and constant development aspirations.

There are a few similar companies in the country – otherwise Russia would become the largest agricultural state long before.

Management team of JSC “Sinyavinskaya Broiler Plant” responsibly looks to the future: active construction and reconstruction of both the production facilities and the required infrastructure (roads and access ways, utilities, electricity and heat supply facilities) is carried out.

As part of the joint pilot project of JSC “Sinyavinskaya Broiler Plant” and LLC “RGC” for reconstruction and re-equipment of the boiler house:

• DGC LLC:

  – At its own expense ensures the purchase, delivery and installation of a cogeneration power park at the point of presence, including microturbines MT250/MT333 manufactured by company FlexEnergy Inc., with the gross installed power of 3MW (and thermal power of up to 3.6MW in cogeneration mode), as well as an increase in the heat production capacity by 5.2MW (construction of an additional boiler house);

  – Ensures follow-up and maintenance of the cogeneration power park throughout the term of the Agreement;

  – Ensures the supply of electric and thermal energy in the quantity and quality specified in the Agreement, on the points of networks separation (at the output of the cogeneration power parks).

• JSC “Sinyavinskaya Broiler Plant”::

  – Ensures the availability of non-residential premises meeting the relevant sanitary and other technical requirements, or (in case of an impossibility to place the power park inside the building) of a land plot at least 6.2m x 11m in size (per 1MW of installed electric power) suitable for a power park;

  – Provides a set of measures involving the actual identification and subsequent implementation of technical capability, aimed at the provision of the points of presence:

  a) By places (points) of the equipment connection to the high-pressure natural gas (GOST R 5542-87), with the outlet gas pressure 517-552 kPa (5.2 bar), with the possibility of consuming (peak consumption with the 100% loading of equipment) to 364 Nm3/h (calculated for a unit with the electric power of 1 MW);

  b) By places (points) of the equipment connection to the heat transfer units, including, but not limited to the water supply system, heating system, boiler houses, heat exchange units.

• DGC LLC and JSC “Sinyavinskaya Broiler Plant” shall conclude a long-term Lease Agreement for the cogeneration power park for a period of 10 years.

  The contract shall provide for calculation of the rent based on the production of heat and electricity subject to the 70% load of the power park in cogeneration mode (provided that during the break in the heating season in the summer months the rent for heat production shall be charged subject to the 20% load).

  If the energy production exceeds 70% of the equipment load the tenant shall reimburse only the actual costs of gas.
  Maintenance costs and the cost of natural gas consumed are included in the rent.

  The rents implies the payment (in 2013 prices) RUR 1,500/Gcal (including VAT) for the supplied thermal energy, RUR 3.8/kWh (including VAT) for electricity, with the subsequent annual indexation for the rate of inflation defined and published by the Ministry of Economic Development or other official source.

As a result of implementation of the joint pilot project JSC “Sinyavinskaya Broiler Plant”:

• Will receive electric and thermal energy produced by cogeneration power park on the basis of microturbines:

  – An innovative source of energy generation perfectly satisfying the needs of modern distributed power, primarily due to the compact size, high efficiency in cogeneration and trigeneration mode – up to 92% and the compliance with environmental standards of the highest level;

  – Operating in parallel with the network that will, in particular, allow, if necessary, using of cogeneration power park as a backup source of electricity;

  – With high reliability – that is connected directly with the reliability of the equipment itself and with the used principle of modularity in the formation of power parks – they will include several microturbine units that may be operated either all together at the required load level or may be alternately switched off (for the purpose of saving resources), subject to the availability of the total power required (if the total load level in a certain period of time is less than 100%).

• Cogeneration power park shall be transferred under a lease that allows:

  – To get extremely reliable power supply as soon as possible and without significant non-recurring costs of acquisition of power plants or payment for grid connection;

  – To get the power supply on the basis of a long-term contract with predictable transparent pricing, which allows saving on energy;

  – To satisfy its needs to the greatest extent possible and in an integrated manner through recycling and transformation of thermal energy during the operation of the power park, with the fuel utilization factor in this case exceeding 92%;

• In addition, the pilot project of using small generation – cogeneration power parks based on microturbines implemented on the basis of JSC “Sinyavinskaya Broiler Plant” will trigger and will serve a good example of advanced technologies implementation in the electric power industry. This will further allow scaling the project in the Northwest region and throughout Russia with the use and wide presentation of the experience of JSC “Sinyavinskaya Broiler Plant”.