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5 MW Cogeneration Plant in Ikwo, Ebonyi, Nigeria

Project Details

21 January 2013

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1. Project Background

Abakaliki Power Plant Limited (APPL) intends to construct a 5 MW rice husk

cogeneration plant. The plant will be located in Ikwo, which is about 60 km far from

Abakaliki, Ebonyi State administrative headquarters. The plant will mainly use rice

husk as fuel. The net available electricity will be supplied to Ebonyi Electric Power

Company Limited (EEPCL) at 11 kV level. EEPCL will supply the electricity to the

following customers:

Ebonyi Agro rice mill

Ebonyi State Government rice mill

Small rice millers

Oferekpe Mega Water Scheme

Nearby community and commercial establishments to the cluster

Steam will be supplied to the modern rice mills in the Ikwo cluster. This project is

supported by Global Environmental Facility (GEF), United Nations Industrial

Development Organization (UNIDO) and Ebonyi State Government.

2. Project Location

The cogeneration plant will be located in the Ikwo cluster which is around 60 km

away from Ebonyi state administrative capital. The plant will be located centrally in

the cluster such that it is closer to the rice mills.

City and region: Ikwo in Ebonyi State

Name of the nearest International

Airport

Murtala Muhammed International Airport,

Lagos

Name of the nearest Domestic Airport Enugu

Distance of the nearest airport 120 km

Travel duration from nearest airport: 1.5 hrs

The following map shows Ebonyi State in Nigeria

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Figure 1: Location map of Ebonyi State in Nigeria

The following map shows the approximate location of the project site in Ebonyi State

Figure 2: Location map of Ikwo in Ebonyi State

Project Location

Ebonyi State

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Figure 3: Detailed location map of the project site

Figure 4: Location of 12 tph, 5 tph rice mills and cogeneration plant in the

cluster

12 tph rice mill 5 tph rice mill

Cogeneration plant site

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3. General Design Criteria

Major Fuel and Cogeneration Plant Capacity

Main fuel used for the cogeneration plant is rice husk. Cogeneration plant will be

designed for 100% rice husk. However, if there is any shortage, rice husk has to be

supplemented with other fuels such as wood waste, cassava rhizome, palm tree

trunks, palm shell, rice straw and any other fuels available in the vicinity which are

not difficult to combust. However it has to be noted that the maximum percentage of

other fuels usage will be restricted as per boiler design. Minimum 20% usage is

recommended.

Boiler and Turbine Technology

Boiler : Travelling grate system or Step grate system

Turbine: Extraction-Condensing steam turbine

Technical Criteria

The cogeneration plant shall be designed according to the following technical

criteria.

Fuel Rice husk

Type of the plant Cogeneration plant (extraction – condensing)

Number of boilers 1 unit

Number of steam turbine generators 1 unit

Gross electrical output 5 MWe (pure power generation mode)

Net electrical output As high as possible

Process steam demand Upto 8 tph @ 5 bar pressure

Estimated annual operating hours Minimum of 7,800 hours

Operational lifetime Minimum of 200,000 hours

When steam is used for rice mills, gross and net electrical output will reduce

according to the steam usage.

4. Cogeneration Plant Concept

This cogeneration plant is first of its kind in Nigeria. There is not enough experience

in Nigeria for operating such a Cogeneration Plant. As of now, there is no biomass

boiler manufacturer in Nigeria. Also there are not much related industries to maintain

and repair biomass power/cogeneration plant in Nigeria. It is very difficult to get

experienced operators and maintenance personnel from Nigeria. Hence, each

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component of the cogeneration plant should be designed/selected in such a way, for

easy operation requiring very minimum maintenance and easy to maintain. Also the

maintenance cost should be as low as possible.

In the event of any failure in any equipment/instruments/parts the entire cogeneration

plant should not be forced to shut-down its operation. The cogeneration plant

operation should not be stalled until the EPC contractor/equipment supplier visit

Nigeria to rectify it. All the equipment/instruments/parts, control systems, etc. shall

be designed in such a way that it will not depend on EPC contractors/equipment

suppliers for rectifying the problems for the re-start of the plant.

5. APPL Scope of Work

Following will fall into APPL scope of work, with the necessary advisory support of

the Contractor. However, the contractor should recommend only the optimum

specifications to avoid high cost to APPL.

S.No. Scope of Work Contractor’s Role

1. Raw water supply at inlet of raw water

tank

Inlet point to be decided in

consultation with the

Contractor

2. Black start diesel generator Size and specification to be

given by the Contractor

3. Fuel and ash handling vehicles including,

front-end loaders and other vehicles

Size and specification to be

given by the Contractor

4. Rice husk open storage area preparation Necessary advice, plot plan

to be given by the Contractor

5.

Rice husk covered shed (but fuel

handling system preparation inside the

covered shed is under Contractor’s

scope)

Necessary advice, plot plan,

specifications to be given by

the Contractor

6. Plant boundary wall construction Nil

7. Landscaping

Necessary advice, plot plan

and diagrams to be given by

the Contractor

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8. Internal roads and drains besides the

internal roads

Necessary diagrams to be

given by the Contractor

9. Internal roads lighting Nil

10. Non-plant buildings such as stores,

workshops, administrative buildings, etc.

Necessary advice and size to

be given by the Contractor

11.

Non-plant buildings such as weigh

bridge, car sheds, canteen, security

rooms, etc.

Nil

12. APPL site office

Please see below for details

Diesel usage for running the

site office is the responsibility

of the Contractor

13. Security and protection of

Engineers/workers during construction Nil

14. Visa/work permit assistance Fee to be paid by the

Contractor

15. Custom clearance assistance Necessary documentation/fee

by the Contractor

16. Necessary local licenses and permits

Necessary support

documentation will be given

by the Contractor

17. Weighbridge Size and simple specification

to be given by the Contractor

EPC Contractor’s Scope Of Work

The scope of work of the EPC contractor includes, but not limited to the following:

Advice on APPL scope of work including preparation of specifications/drawings/

designs for execution and sub-contracting wherever necessary

Detailed engineering and design including submission of the same for all civil,

mechanical, electrical and instrumentation and control (I&C) requirements of this

cogeneration project.

Boiler and its auxiliaries

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Extraction condensing steam turbine generator and its auxiliaries including

turbine bypass system

All steam piping with necessary pressure reducers/de-super heaters including

extracted steam connection to low pressure (LP) steam header

Air cooled condenser including required structures, fans, controls and

condensate return system

Electrostatic precipitator or any other proven pollution control device

Fuel and ash handling system

Water treatment plant and its auxiliaries

Waste water treatment plant & its auxiliaries

Distributed control system (DCS)

Firefighting system

Overhead crane for powerhouse and required monorails for all large

motors/fans/pumps/ transformers

All required civil works for foundations, buildings, air cooled condenser, chimney,

drains, trenches, etc., unless otherwise stated

All required cabling, piping and earthing within the terminal points

All required utilities to operate the cogeneration plant including water de-

mineralization (DM) plant, uninterrupted power supply (UPS) system, DC power,

compressed air, lighting, etc.

Required plant air conditioning and ventilation systems

Electrical evacuation until inlet of 11 kV switchyard feeders with isolating breaker

and metering. to EEPCL

Other required aspects for the successful completion of the project (all aspects

other than APPL scope of work given above)

6. APPL Support for the Project

Site office and accommodation facilities provided by APPL are as given below:

A 150 square feet office for APPL and another one with the same size office for

the EPC contractor

A 200 square feet common office

Four self-contained single rooms with air conditioning facility. Two for APPL and

the rest for the EPC contractor

Five double rooms with fan. Two for APPL and the rest for the EPC contractor

Two common toilets

Two common bathrooms

Common kitchen and a dining hall

Sitting hall

50 kVA generator with a generator room

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Water tank, stand and water piping

Furnishing for the entire building

7. Government Support for the Project

The selected EPC contractor will receive the following supports from the Ebonyi

State Government:

Tightened security with armed guards

- For construction workers, site engineers

- For the stored equipment/parts

Such security shall be provided until start of cogeneration plant operation

Assistance in getting visa and other licenses and permits

Other inventions/supports wherever required for the smooth function of the

project

8. Commercial Expectations

Warranty

The supplier must ensure the efficient operation of the cogeneration plant and must

include 1 year rolling warranty. 2 year rolling warranty is preferable.

Performance Guarantees (with Liquidated Damages)

The project owner expects the following performance guarantees:

Project completion within the agreed time

Heat rate

Power output

Availability guarantee for atleast 7,800 hours

Reliability guarantee

Environmental guarantee for particulate emission less than 100 ppm

Noise level guarantee

Insurance

As per international standards

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Bonds, Security

As per international standards

Payment

Progressive payment terms as per international standards

9. Tentative Scoring Mechanism

The following criteria will be applied in selecting the bids:

a) Technical and General

S.No. Criteria Score

1. Compliance with the scope of supply 15

2. Compliance with the technical specifications 10

3. Net power output (for both cogeneration and

power generation mode) 15

4. Specific fuel consumption (for both

cogeneration and power generation mode) 10

5. Overall plant performance 10

6. Operational suitability for Nigerian conditions 10

7. Maintenance suitability for Nigerian conditions 10

8. Experience, track record and international

reputation 5

9. EPC experience in Nigeria and Africa 5

10. Boiler supplier experience in Nigeria and Africa 5

11. Turbine supplier experience in Nigeria and

Africa 5

Total 100

b) Commercial

S.No. Criteria Score

1. Total project cost of overall cogeneration plant 40

2. Detailed breakdown for the total project cost 20

3. Delivery period 10

4. Liquidated damages acceptance 15

5. Warranty period and nature of warranty 15

Total 100

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Selection criteria

Total number of points =200

Criterion Maximum score of points

Technical and General 100

Commercial 100

Note: The above scoring mechanism is tentative. APPL reserves the right to change the scoring mechanism.

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Annexure 1 Nigeria Country Details

S.No. Title Details

1. Population Around 170 million

2. Religion Muslims 50%, Christians 40%, indigenous beliefs 10%

3. Languages English (official), Hausa, Yoruba, Igbo (Ibo), Fulani

4. Literacy Total population – 61.3% Male - 72.1% Female - 50.4% (2010 est.)

5. Government type Federal republic

6. Capital Abuja

7. Independence 01 October, 1960

8. Legal system Based on English common law, Islamic law (in 12 northern states) and traditional law; accepts compulsory ICJ jurisdiction with reservations

9. Judicial branch

Supreme Court (judges appointed by the President); Federal Court of Appeal (judges are appointed by the federal government on the advice of the Advisory Judicial Committee)

10. GDP

GDP (purchasing power parity) - $ 414 billion (2011 est.) GDP (official exchange rate) - $ 240.1 billion (2011 est.) GDP – real growth rate - 7.4% (2011 est.) GDP – per capita (PPP) - $ 2,600 (2011 est.) GDP composition by sector (2011 est.) a) Agriculture - 31.1% b) Industry - 43% c) Services - 26%

11. Inflation rate (consumer prices)

10.8% (2011 est.)

12. Agricultural products

Cocoa, peanuts, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yam, rubber; cattle, sheep, goats, pigs, fish; timber;

13. Industries

crude oil, coal, tin, columbite; rubber products, wood; hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel

14. Currency code Naira (NGN)

15. Ports and terminals

Bonny Inshore Terminal, Calabar, Lagos

Source: www.cia.gov

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Exchange Rate

Naira is the official currency of Nigeria. The figure below shows the fluctuations in

the exchange rate of Naira per US dollar for the past one year:

Figure: Exchange Rate of Naira Vs US Dollar

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Annexure 2

Abakaliki Town Details

Abakaliki is the administrative headquarters of the Ebonyi state.

Hotels

Abakaliki Town has numerous hotel facilities with cost ranging from USD 30 to 100

per day.

Security

Abakaliki, Ebonyi is a safe place and do not have any security issues.

In addition to this Ebonyi State Government has pledged to provide complete

security for this project which includes armed security for the following:

For construction workers, site engineers

For the stored equipment/parts

Internet

Abakaliki has good broadband internet facilities at lower rates.

Government support

In addition to providing security, Ebonyi State Government will support the project

by:

Assisting in getting visa and other licenses and permits

Necessary inventions/supports wherever required for the smooth function of the

project

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Annexure 3

Port Details

International Airport

Abuja Airport: Nnamdi Azikiwe International Airport

Lagos Airport: Murtala Muhammed International Airport

Domestic Airports near to site

Enugu airport: About 2.5 hours by road to the cogeneration plant site

Owerri airport: About 4.5 hours by road to the cogeneration plant site

Port Harcourt airport: About 6 hours by road to the cogeneration plant site

Recommended Sea Port

Lagos sea port details can be found in the following link:

http://www.searates.com/port/apapa_ng.htm