Spain's Artenius Selects GE Gas Turbines for Cogeneration Plant in Portugal

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Researched by Industrial Info Resources (Sugar Land, Texas)--GE Energy (Atlanta, Georgia), the power and technology division of General Electric Company (NYSE:GE) (Fairfield, Connecticut), will deliver gas turbines for the cogeneration plant being developed by La Seda de Barcelona SA (MCE:SED) (Barcelona, Spain) to support its 700,000-ton-per-year purified terephthalic acid (PTA) manufacturing unit at the Sines Industrial Park in Portugal. The Sines Industrial Park, located south of Lisbon, also includes a polymer refinery developed by Repsol YPF SA (NYSE:REP) (Madrid, Spain), and the Sines power plant operated by Energias de Portugal SA (OTC:EDPFY) (Lisbon, Portugal).

The 40-megawatt (MW) cogeneration plant will operate on GE Energy's Frame 6B gas turbine technology. The Frame 6B technology is a popular choice for cogeneration plants across Spain, Portugal and other nations in Europe and is used by 30% of cogeneration power plants worldwide.

The power plant, which is expected to begin operations early next year, will use natural gas as the main fuel feed. Upon commissioning, the facility will bring down nitrogen-oxide emissions to 15 parts per million. A cogeneration plant, also known as a combined heat and power plant, produces both useful heat and electricity. Unlike a conventional power plant, in which thermal heat is not always utilized optimally, in a cogeneration system, the heat is used to increase power production efficiency to 89%. This also results in higher fuel efficiency. The operating efficiency of conventional power stations is around 65%.

Artenius, the business unit of La Seda De Barcelona, focused on production of polyethylene terepthalate (PET), will operate the PTA plant at the Sines industrial complex. PTA is the primary input for the production of PET, a synthetic polymer that finds extensive use in engineering, packaging and plastics. The commissioning of the PTA production facility will create 150 direct and 200 indirect jobs in the country, and is also expected to revive activity at the Sines port. The PTA project, touted to be the largest of its kind in Europe, will also be instrumental in the economic and infrastructure development of the coastal region of Alentejo. The total investment in the PTA plant is estimated to be around $495 million, including aid of $136.3 million granted by the European Union. In 2007, Aker Kvaerner (Oslo, Norway) was awarded the engineering, procurement and construction contract. The plant is expected to be commissioned in 2010 and will begin full capacity production by 2012.

The PTA project is also of strategic significance to Portugal, as it is expected to refurbish the country's chemical sector and help increase the supply of PTA in Europe. Presently, Europe imports around 400,000 tons per year of PTA from Asian countries. Asia, which accounts for more than 60% of global polyester fiber production, is one of the main demand drivers of PTA. Consequently, Europe and North America have seen a decline in the manufacture of polyester fiber, but there is a rapid increase in the PET resin industry, which manufactures bottles for soft drinks and packaging of food products. Until 2008, the PTA market was growing at a rate of 6-8%. However, the demand has slumped because of the present global financial meltdown. In the wake of the present economic scenario, the industry could face challenges of unused production capacity. The industry is expected to see an addition of 900,000 tons per year of capacity this fiscal year. In addition to the commissioning of Artenius' production facility in 2010, three plants in China will start operations this year. Additionally, Poland's PKN Orlen SA (WSE:PKN) (Plock) is expected to commission a 600,000-ton-per-year plant in 2010.

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