AGL and Qenos sign cogen construction deal

Qenos Chief Executive Jonathan Clancy said that the approximately $A45 million project will involve the replacement of a steam boiler with a 21 MW cogeneration plant, using a turbine supplied by Solar Turbines International.

“The replacement of one of our steam boilers with a 21 MW cogeneration plant will result in a significant improvement of our energy efficiencies,” Mr Clancy said. “The project will result in a reduction of approximately 100,000 t of greenhouse gas emissions per year.”

An existing steam boiler on the Olefins site at Altona will be decommissioned and replaced with a modern cogeneration unit that will meet all of Qenos’ electricity demand, with the capability to produce over a third of its steam requirements.

When coupled with a heat recovery steam generator, it will produce up to 88 t of steam per hour.

AGL and Qenos have entered into a 15-year operating and maintenance agreement, with the option to extend the agreement by 25 years. AGL will become the sole supplier of natural gas to the site to operate the gas turbine and balance of plant. The cogeneration plant and balance of plant is estimated to consume approximately 4.5 PJ/a of natural gas.

“At the heart of the cogeneration unit will be a state-of-the-art gas turbine, which will be the first of its kind in Australia,” Qenos said.

Mr Clancy said that the project would demonstrate the power of industry, government, employee and the community co-operation to provide a secure long-term energy source and to improve the economics associated with the production of polyethylene. AGL said that construction, which is estimated to generate approximately 40 jobs, is expected to commence in September 2011, and that the cogeneration plant will be operational in late 2012.

AGL’s engineering, procurement and construction contractor for the project is UGL Limited.

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