Adrem Invest to put EUR 45 mln for new cogeneration power plant in Suceava

Adrem Invest, a Romanian company specialized in industrial technical engineering, will start building works for a new cogeneration power plant in Suceava this winter. This statement was made by Adrian Bodea, president of Adrem Invest, in a press conference held today. He added that 20 percent of the financing for this project will be gathered by Adrem Invest, while the rest 80 percent will be loaned from a consortium of two banks.

The first stage of the building works will consists of the installation of natural gas turbine which is expected to finalize by the beginning of 2013. The installed electrical capacity will be 18.4MW, while the thermal capacity will reach 28 MW. The second stage will involve setting up a cogeneration facility with biomass. This stage will finalize in the second half of 2013 and will have an electrical capacity of 11 MW, and 31 MW in thermal. The biomass material will be obtained from local forest exploitation facilities. In fact, Suceava produces around 1 million tons of biomass yearly, mainly from forestry activities.

The newly built plant will have an 85 percent efficiency rate and will serve 25.000 apartments connected to the central heating system, together with private homes, companies and state institutions, totaling 60.000 inhabitants of Suceava city.

The Suceava cogeneration plant will deliver thermal energy amounting to 320.000 Gcal per year, while the annual electricity production will reach 152.000 MWh per year. The end-consumer will benefit from a cost of RON 200 (around EUR 50), for 1 Gcal, below current prices.

Adrian Bodea, the president of Adrem Invest, also explained that Suceava has the most efficient energy transportation and distribution system of thermal energy with 34 percent losses. Meanwhile, Bucharest has 70 percent losses in the thermal energy system, while other cities in Romania are averaging at 50 percent.

Apart from power projects, Adrem Invest has also made significant business deals in the Process Engineering Division. The Romanian company has delivered a second installation for the degasification of steel liquid for the Chinese Group, Baotou Iron & Steel Group. Adrem delivered similar installations in South Korea and Ukraine.

Adrem also collaborates with the CEZ Group within the Division of Integral Services, where it provides maintenance services for the electricity distribution network and with E.On in reading the natural gas meters. The energy projects account for 50 percent of the company’s turnover that is expected to reach RON 172.2 million this year. Nine months into 2011, the gross profit of Adrem Invest reached RON 10.8 million and the employees number is expected to reach 714 at end-2011.