Chile to Invest More Than $13.5 Billion in Coal-Fired Power Through 2014

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Researched by Industrial Info Resources (Sugar Land, Texas)--Contrary to trends in Europe and North America, 48% of the power projects to be inaugurated in Chile between 2011 and 2014 will use coal as the main fuel. More than $13.5 billion will be invested in coal-fired plants in the country through 2014.

Approximately 28% of the power projects on the books during this time will be hydroelectric plants, representing investments of about $7.7 billion. In total, 23 thermal and 56 hydroelectric plants are planned to be built between now and 2014. About $3 billion will be invested in other renewable forms of energy, including windfarms, geothermal plants and photovoltaic power plants.

Fossil fuel initiatives will be concentrated in Chile's Atacama region ($4.87 billion), followed by Bio Bio ($3.79 billion), Valparaiso ($2.98 billion), Maule ($2.36 billion and Antofagasta ($2.18 billion). According to Chile's energy commission (CNE), the Calle Calle, Bocamina II and Santa Maria thermal plants will become operational in 2011.

The Bocamina II thermal plant, owned and operated by Endesa Chile (Santiago de Chile, Chile), will have a capacity of 350 megawatts (MW) and will be fired by bituminous coal. According to Claudio Iglesis, Endesa's power generation manager for Chile, the plant will be connected to the Central Interconnected System (SIC) and provide a substantial amount of electricity to the Chilean population. Bocamina II will be equipped with the latest technology and equipment for emissions reduction, including combustion gas desulfurization, filters and low-NOx burners.

Construction of the $560 million power plant began in October 2007, and completion is expected for the end of 2011. For additional information, see August 6, 2007 article - Endesa and Maire-SES-Techimont to Build $620 Million Thermal Plant.

The $400 million, 350-MW Santa Maria coal-fired power station, owned by Colbun SA (Santiago de Chile, Chile), commenced construction at the same time as the Bocamina II plant and is estimated to become operational in August 2011. The plant will be equipped with a RH-5 GE Energy steam turbine and a dry bottom boiler manufactured by SES Tlmace as (Tlmace, Slovakia).

The 20-MW Calle Calle Power Plant will be equipped with eight fuel oil-fired internal combustion engines. The plant will be located eight kilometers from Valdivia City, on the way to Antihue. This project is valued at $4.8 million.

Although coal is cheap and obtaining it is not a complicated process, several projects, including the Barrancones and Castilla thermal power projects, have faced difficulties related to obtaining environmental permits.

The 700-MW Castilla coal-fired power station is currently awaiting environmental permits, which are expected to be issued in March. The owner, MPX Energia SA (Rio de Janeiro, Brazil), plans to invest $750 million to supply the Atacama region with electricity. The plant will have two coal-fired supercritical boilers to drive two 350-MW steam turbines.

On the other hand, the 540-MW Barrancones project obtained the environmental permits, but Chilean President Sebastián Piñera decided to abort the construction of the coal-fired facility.

Chile will invest more than $28.5 billion in power projects through 2014. Most of them will be power generation projects, although Chile also plans to construct substations and transmission lines in several regions.

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