OREANDA-NEWS. July 30, 2012. Lietuvos Energija, which is currently completing the installation of a natural gas combined cycle unit at the Lithuanian Power Plant, is also continuing the project for modernization of heat production technologies. The main goal of the project is the installation of a biomass boiler.

On July 23 of this year, an international tender was announced for the procurement of design, equipment and works for the construction of new heat production capacities at the Lithuanian Power Plant. The winner of the international tender is planned to be selected by the end of this year. Competition from Lithuania and foreign contractors is expected.

In implementing the project, Lietuvos Energija is currently carrying out selection for environmental impact assessment, and procurement of a loan to ensure project funding. The procurement of biomass, which will be used for operation of the new boilers, is also in progress.

The new heat production capacities which are planned to be introduced are part of the composite project for the renovation of the Lithuanian Power Plant. The 455 MW combined cycle unit which is currently being tested will allow for the efficient and flexible production of electricity based on consumer and energy system demands and the market situation. Meanwhile, the new biomass boilers will ensure heat production for the residents and businesses of the Elektrenai municipality, and the old Lithuanian Power Plant units will ensure reserves. It is planned that a part of the new biomass-fueled heat production capacities will already start operation in 2013. The entire project for the modernization of heat production technologies is scheduled to be completed in 2014.

“The implementation of this project will lead to the effective use of local resources, which in this case is biomass. Since the beginning of 2011, gas prices have increased by more than 50%, while biomass – just a bit over 5%. We are orienting ourselves toward regional biomass suppliers, and are planning that the installation of biomass boilers will help ensure more stable heating prices for Elektrenai locals,” Lietuvos Energija CEO Dalius Misiunas accents the benefits of the project for heat production capacities.

Once the project is completed, the total capacity of the biomass boilers will reach 40 MW. Using local resources, the biomass boilers will ensure 90% of the heat demand. The maximum heat demand during the heating season as well as reserves will be ensured by 50 MW gas-fired steam boilers, which will also be used will be used for start-up of the plant’s reserve units.