Pannon-Hő Energetikai Termelő Kft. has been established by the Company Group to manage from the very beginning the operation of the 35 MW straw-fired unit using renewable energy source by an independent project company.
The basic activity of the company is biomass based heat and electricity production. The company group commenced the preparatory works in 2008. At present we are still in the investment period managed mainly by Pannon-Hő Kft.
The equipment and tools purchased for processing fuel and generating electricity, the erection and instalment of which are on-going, are also in the ownership of Pannon-Hő Kft. The new supporting structures and the boiler have been erected, while construction is proceeding simultaneously in several sites. The future bale storage facility is ready and its equipment is under manufacturing in accordance with the time schedule.
Moreover, the Company shall purchase services necessary for its operation from other companies and sister-subsidiaries as well, similarly to PANNONGREEN Kft. operating the wood-fired unit.
The trial run of the new 35 MW unit will commence in December 2012 and it will start commercial operation in the spring of 2013.
With commissioning the new unit 100% of the district heat demand of Pécs will be covered by biomass, i.e. the city’s green district heat supply will be realized.
Description of the new project
The implementation of the straw-fuelled unit is broken down to several partial projects:
erection of a new vibrating grate-fired boiler in the existing boiler house
establishment of a state-of-the-art system for the reception and storage of baled fuel
purchase, refurbishment and conversion of the existing power plant equipment and buildings necessary for the operation of the project.
During the project a special new vibrating grate-fired boiler will be erected which will be suitable for the combustion of baled agro by-products (straw, corn stalk, etc.) as well as so-called main products produced for this very purpose, e.g. energy cane (Miscanthus).
For the implementation of the boiler and the fuel handling system Pannon Hő Kft. issued a call for tender and as a result the two contractors (boiler supplier and general conractor) were selected with whom negotiations were initiated for the erection of the straw-fuelled boiler and its auxiliary systems. The major target of the tender procedure was (beside selecting the right partners) to establish an efficient EPCM (main contractor management) – boiler supplier contractual system to ensure coordination of the design, licensing and construction works as well as manufacturing, delivery and erection of the technological systems and equipment, commissioning the unit and successful test run with the expected performance and environmental guarantees. The Hungarian Kraftszer Kft as EPC-M Contractor integrated a Danish boiler supplier in Power Plant design and implementation. Denmark is the European country with significant references of straw-fuelled boilers with similar dimensions to the Pécs project, which in itself is a significant guarantee concerning the successful implementation of the project.