bio-renewables capability

CAPABILITY STATEMENT

May 2016

Capability and Experience in Bio-Renewables

PÖYRY ENERGY LIMITED May 2016

Copyright © Pöyry Energy Limited All rights are reserved. This document or any part thereof may not be copied or reproduced without permission in writing from Pöyry Energy Limited


Contact and Company Details: Contractor: Poyry Energy Ltd Contact Person: Julian Scutter, Head of Renewable Energy (UK) Tel: + 44 (0) 1403 224263 Email: [email protected] Fax: + 44 (0) 1403 210758 Contractor Location: Pöyry Energy Ltd.

Century House, 100 Station Road Horsham, West Sussex, RH13 5UZ United Kingdom

Registered office: Century House

100 Station Road, Horsham, West Sussex RH13 5UZ, United Kingdom

Registered Number: 1192469 VAT Number: GB 234517965


Table of Contents

1 PÖYRY AND ITS ENERGY BUSINESS 1

1.1 Pöyry in Brief 1

1.2 Pöyry’s Organisational Structure and Business Sectors 2

1.3 Pöyry’s Energy Business Group 3

1.4 Thermal Power Global Competence Line 3

2 PÖYRY’S BIO-RENEWABLES CAPABILITIES 5

2.1 Range of Services 5

2.2 Range of Technical Know-How 7

2.3 Specialised Software Tools 7

2.4 Selected Recent Bio-Renewables Project References 9 2.4.1 EfW Power Plants and CHP Plants 9 2.4.2 Biomass Power Plants and CHP Plants 13

3 PÖYRY’S OWNER’S ENGINEERING SERVICES 18

3.1 Key Risks to Project Delivery 18 3.1.1 EPC Development Phase 18 3.1.2 EPC Delivery Phase 19

3.2 Owner’s Engineer services 21 3.2.1 Basic skills needed as owner’s engineer 21 3.2.2 Project Development and Implementation Services 22

4 STAFF CAPABILITIES 24

4.1 Bio-Renewables and CHP Specialists 24

4.2 Other key discipline specialists 28 4.2.1 Civil & Structural 29 4.2.2 Electrical and Automation 29

5 QUALITY ASSURANCE 30

6 ENVIRONMENTAL POLICY 30


APPENDICES

APPENDIX 1 –REFERENCE LISTS

APPENDIX 2 – PROJECT SHEETS

APPENDIX 3 - QUALITY ASSURANCE

APPENDIX 4 – ENVIRONMENTAL POLICY AND CERTIFICATE

PÖYRY ENERGY LIMITED May 2016 Page 1

1 PÖYRY AND ITS ENERGY BUSINESS

1.1 Pöyry in Brief Pöyry is an international consulting and engineering firm. We provide services across the full project lifecycle, solving complex challenges faced by the world’s toughest industries.

Pöyry is client focused with the determination, creativity and skills to deliver the most complex projects to the highest standards wherever the location.


1.2 Pöyry’s Organisational Structure and Business Sectors

Pöyry is organised globally into Business Groups comprising: Management Consulting; Energy; Industry and Regional Operations.

Pöyry’s services are provided from six Business Sectors:

Power Generation, Transmission and Distribution

Forest Industry

Chemicals and Bio-refining

Mining and Metals

Transportation

Water and these services are focused on our client’s entire business cycle:


Pöyry’s services are delivered from offices in 45 countries, including from its local business in the UK which employs around 130 staff. Pöyry’s UK Energy Business Group engineering business is conducted from its four offices located in Horsham, Warrington, Reading and Plymouth and its Management Consulting businesses are based in the Oxford and London offices.

1.3 Pöyry’s Energy Business Group The future calls for improved energy efficiency and new innovative ways of mitigating environmental impacts. With our strong track record and in-depth expertise Pöyry’s Energy Business Group (EBG) finds and engineers clean and effective solutions for complex energy projects. Our Global Competence Lines connect specialists from within all of our EBG offices to ensure that the latest know-how, no matter from where it has been gained, will be delivered locally regardless of our clients’ locations.

1.4 Thermal Power Global Competence Line Pöyry’s Bio-Renewables, CHP and district heating expertise is delivered from the EBG’s Thermal Power Global Competence Line. Our Bio-Renewables business includes energy-from-waste (EfW) as well as biomass plants. Pöyry has gained extensive experience in Bio-Renewables over many decades as owner’s engineer for EPC turnkey solutions as well as for EPCM multi-contract solutions. The latter tends to require a much more ‘hands-on’ and less supervisory approach than as owner’s engineer for EPC solutions, since with the EPCM model Pöyry carries the overall engineering, project and construction management responsibility and this requires a deeper understanding and capability. This has led Pöyry to develop specialist project and construction management skills and also the specialist engineering skills that enable the definition of individual plant packages (e.g. fuel handling, boiler, turbine, etc.) and performance guarantees and the detailed design of the balance of plant systems (e.g. civil, electrical, automation) that are needed to bring everything together.


Pöyry has delivered these skills for EPC and EPCM projects in the UK and internationally around the globe. Pöyry achieves this with local teams that utilise their own specialists but with the support of more technical specialists, discipline specialists and general engineering resources from within the EBG’s Global Competence Lines and the wider Pöyry group when needed.

Pöyry has proven successful development and delivery experience in the UK through completed projects at Allington (EfW, owner’s engineer), Shotton and Irvine (biomass CHP, engineering for EPCM delivery) and SAICA in Manchester (Board mill, EPCM delivery) as well as the development of many others. These projects have been successfully delivered using resources from offices in the UK, Germany (Hamburg), Switzerland (Zurich) and Finland (Helsinki), all of which have engineers who are well versed in the requirements of the UK market and the needs that are driven by project financing.


2 PÖYRY’S BIO-RENEWABLES CAPABILITIES

2.1 Range of Services Pöyry covers the entire Bio-Renewables marketing and utilisation value chain, using state-of-the-art methods and technologies in the areas of energy, fuel supply (i.e. waste, SRF, wood and waste wood) and power generation.

Pöyry’s success is based on a deep understanding of its clients’ core business processes and a mastery of the entire lifecycle of an investment project. Networking and co-operation through our Global Competence Lines enables our teams to fulfil our clients’ objectives by exploiting our corporate experience, our individual talents and our shared skills. Together with our project oriented business approach, we can deliver a full range of leading-edge solutions and services to our clients, globally and locally.

Our project services as technical advisor (TA), owner’s engineer (OE), lenders’ engineer (LE) and contractor’s engineer (CE) cover all stages of development from pre-feasibility and feasibility assessments, environmental evaluations and due diligence work to project design, project management, implementation and operational excellence.


Services (sample)

Functions in the project life cycle

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Pöyry’s technical services cover the entire lifecycle of our client’s projects from an initial business idea through to successful operation. During the project development phase, this includes initial option studies, detailed feasibility studies, pre-engineering and support for permitting, preparation of contract documentation and tendering services. During implementation, our services include everything needed by the Purchaser to ensure successful completion and reliable operation. During the plant’s operating lifecycle, Pöyry can support major plant upgrades and can help to ensure best practice in operation and maintenance.

• Feasibility and project studies • Consulting • Front-end engineering • Project development services• Project finance and related

analyses • Environmental impact

assessment (EIA)

• Project management • Engineering and design • Procurement services • Delivery supervision • Construction supervision • Commissioning • EPCM • EPC• Quality assurance

• Technical advisory services • Operation Improvement • Operation & Maintenance • Performance testing • Energy contracting • Quality assurance • Audits • Rehabilitation and retrofits • Decommissioning • Environmental audits and

measurements

Strategy

Implementation Commercial operationDevelopment

Pre-engineeringFeasibility Basic and detailed eng.

Construction

Erection

Procurement

Commissioning

Trial run

ManufacturingFinancing,partner and contract negotiations,ITBs

Planning Analysis

Operation and maintenance

Personnel training

Continuous improvement

Investment decision Take-over dateBusiness idea Major refurbishment

More than 160 Bioenergy plants,

where Pöyry has been involved



assessment (EIA)



measurements

Strategy



Construction

Erection

Procurement

Commissioning

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Planning Analysis


Personnel training







assessment (EIA)



measurements

Strategy



Construction

Erection

Procurement

Commissioning

Trial run


Planning Analysis


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2.2 Range of Technical Know-How Pöyry is very experienced in designing Bio-Renewables plants for industrial and utility scale applications, having carried out the engineering for numerous Bio-Renewables plants based on a range of technologies (BFB, CFB, grate, pulverised fuel, etc.) and differing fuel types (e.g. municipal waste, RDF/SRF, wood wastes, forestry wastes). These plants have very often been CHP systems that are either fully integrated within the client’s process (e.g. at a paper mill as at Shotton and Irvine) or with a local district heating scheme (e.g. Sheffield, where Pöyry designed the district heating scheme and added a pass-out turbine).

Pöyry is able to deal with the whole Bio-Renewables chain, whether this is for waste collection or biomass harvesting, right through to combustion, energy supply and distribution. We are highly experienced in the utilisation of all types of Bio-Renewables from industrial wood wastes, municipal wastes and refuse derived / solid recovered fuels (i.e. RDF and SRF) and further to forestry residues, energy crops and forest industry by-products (e.g. sludge and bark).

2.3 Specialised Software Tools Pöyry utilises both in-house and commercially available software to assist the development and implementation of its clients’ projects.

We have developed state-of-the-art tools for supporting the development of projects in the Bio-Renewables sector. These tools are used for preparing fuel availability assessments and forecasts, fuel consumption estimates and forecasts, regional fuel supply/demand balances, for determining regional value chains and cost structures of fuel procurement; and for market development studies and greenhouse gas emission balances and forecasts.

For development of the thermodynamic process, Pöyry uses both in-house and commercially available software that includes Steam Pro, Thermoflex, Tursim and Ebsilon. These tools are used to develop the steam cycle to ensure that power and heat outputs are optimised and PEACE is used for preliminary estimation of costs.


Additionally, we have in-house developed software (Modysim) to dynamically model process consumer heat loads (e.g. within paper mills), optimise control systems and provide the best match design for related CHP plants, and we have hydraulic modelling software for district heating scheme design (Grades Heating).

Pöyry’s project management software includes DocHotel and PIRS (by Sobis) for the management of project documentation; CoPilot for the systematic identification and management of project technical and commercial risks; and Virtual Plant for 3D


modelling and the integration of plant O&M documentation (NB this can later be extended and integrated with maintenance management software as an O&M tool).

2.4 Selected Recent Bio-Renewables Project References

2.4.1 EfW Power Plants and CHP Plants Pöyry has worked on EfW projects in various roles from the project development phase to construction, including:

Dedicated or “full scope” Owner’s Engineering tasks from project development to execution, including e.g. pre-feasibility and feasibility studies, invitations to main plant equipment / EPC tendering and procurement of main equipment / EPC turnkey, supervision of suppliers during execution, performance testing etc.

Basic and Detail Engineering, either for the Owner or for Contractors

Full scope EPCM (Engineering, Procurement and Construction Management), in which role Pöyry has been acting as the Owner’s Engineer towards multiple contractors.

Pöyry’s most recent Energy-from-Waste references are illustrated below and further details are given on the reference list in Appendix 1 and the project sheets in Appendix 2. Most of these European EfW plants have included CHP and most are linked to district heating schemes.


2.4.1.1 Ineos, Runcorn EfW CHP Plant

TPL’s EfW plant at Ineos Chlor in Runcorn will receive 850,000 t/yr of solid recovered fuel and generate around 70MWe of electricity and 51 MWth of heat for Ineos’s local chemical production site. Phase 1 (c. 50% capacity) commenced operation in 2014. The SRF is produced in the Manchester, Liverpool and Cheshire areas by several MBT-AD plants that receive municipal waste and separate the SRF and organic fractions as well as recyclable ferrous and non-ferrous metals.

Pöyry’s services included: an initial feasibility study for Ineos to consider the relative merits of water cooled grates against circulating fluidised beds (CFB); technical support for Ineos’s permitting (planning and environmental); development of the plant conceptual design for Ineos-Viridor-Laing (TPL), including the rail delivery and transfer system; specification and supervision of the proposed EPC contractor’s FEED study; technical and cost estimating support for TPL’s plant lifecycle analysis; development and negotiation of the EPC contract technical specifications, performance guarantees and technical schedules; and technical advisory support across a range of other contracts being developed prior to achieving financial close.

2.4.1.2 WRG, Allington EfW Power Plant The EfW plant at Allington receives 560,000 t/yr of municipal waste and co-mingled recyclables. It recovers ferrous metal from the municipal waste and produces a coarse refuse derived fuel (RDF) that is burned in three bubbling fluidised bed (BFB) boilers to generate around 40MWe of power. An integrated material recovery facility (MRF) separates and bales materials from the co-mingled recyclables.


Pöyry’s services included; a review of fluidised bed technologies; development of the conceptual design together with the preferred EPC contractor; specification and supervision of the EPC contractor’s FEED design; technical and cost estimating support for the client’s plant lifecycle analysis; development and negotiation of the EPC contract technical specifications, performance guarantees and technical schedules; technical advisory support across a range of other contracts being developed prior to achieving financial close; and full owner’s engineer project implementation services through to testing, take-over and until the end of the availability test and defects liability period.

2.4.1.3 Vantaa Energia EfW CHP Plant This new EfW CHP plant was built for Vantaa Energia by Pöyry using the ‘full scope’ EPCM multi-contract implementation model with services comprising project management, engineering, procurement and construction management. The project was completed by Pöyry within budget and before the planned completion date in 2014.

The plant consists of a twin stream conventional EfW boiler plant of 320,000 t/yr capacity that generates steam at 400oC and 90bar and produces 78MWe of electricity and 120MW of heat for the local district heating system.


The plant has an integrated gas turbine and heat recovery steam generator (HRSG) that increases steam temperature to 535oC to improve cycle efficiency and boost overall output at peak demands.

2.4.1.4 Lahti Energia EfW CHP Plant Lahti Energia’s new Kymijärvi 2 power plant, which has been in commercial operation since spring 2012, is a recycled waste fired power plant based on the next generation gasification technology, reducing the use of fossil fuels considerably in Lahti (see below). The plant uses 250 000 t/a of pre-processed waste and is the first dedicated, commercial gasification power plant in the world to use only Solid Recovered Fuel (SRF).


The thermal capacity of the Lahti Energia plant is 160 MW and it produces 50 MW of electricity and 90 MW of district heat. The plant consists of a CFB gasifier, i.e. circulating fluidised gasification process provided with gas cooling and cleaning.

Pöyry’s services for the Lahti Energia KYVO2 project included the implementation engineering of the entire Balance-Of-Plant (BOP). Through our full-time involvement with the design, construction and commissioning, we gained a very good understanding of the gasification technology and its sensitivities. This know-how was put to good use in our support as owner’s engineer to Biossence for the development of the ELSEF’s proposed waste gasification project in east London.

2.4.2 Biomass Power Plants and CHP Plants A selection of projects is given below to further illustrate Pöyry’s breadth and depth of project delivery capability in the UK. These projects illustrate the variety and scope undertaken by Pöyry including as owner’s engineer for EPC and EPCM projects.

2.4.2.1 UPM, Shotton and Irvine Biomass CHP Plants Pöyry provided the engineering for UPM’s CHP plants at their paper mills in Shotton (see photo below) and Irvine. These CHP plants were both similar in concept, both utilising bubbling fluidised beds (BFB) supplied by Valmet and both provided heat and power to the mills. The power output at Shotton is about 20MWe and at Irvine it is about 28MWe.


Pöyry’s services included: the initial conceptual design and feasibility study; technical support with financial modelling; and then full engineering services for the EPCM multi-contract implementation. The EPCM engineering services included the specification of individual plant packages (i.e. fuel handling, boiler, turbine); interface engineering between the packages and detailed engineering of the balance of plant systems (i.e. electrical system, automation system, piping and, at Irvine, detailed civil and structural design).

2.4.2.2 MGT, Teesside Biomass CHP Plant Pöyry’s UK team has led the technical support to MGT for the development of its proposed 299MWe biomass CHP plant since 2008. Initially, this support was for a front end engineering design (FEED) study that was to be the pre-cursor for EPCM implementation by Pöyry, this reflecting the market conditions at the time in the biomass sector where there was no interest from contractors in offering EPC solutions. Latterly, market conditions have changed significantly and there has been interest from a range of international EPC organisations. Consequently, Pöyry’s role has reverted to its more usual activity of owner’s engineer services. This OE role has included:

Concept review and refinement, including integrated wood chip dryer, optimisation of the CHP plant to provide heat to the dryer;

Application for qualification as good quality CHP and review of tenders to confirm compliance with certificate;

Appraisal of EPC tenders, including the technical submissions and review of construction programmes and milestone payment schedules;

Preparation of EPC contract documentation, including minimum functional specifications and performance guarantees as well as other technically led contract schedules;


Technical support with the negotiation of the EPC contract, including detailed

discussions and amendments of the contract documentation, specifications and contractor’s proposals;

Technical support for the negotiation of the O&M contract, long term service agreements and spares stockholding;

Technical support for the inputs to the financial model, including O&M organisation structure and costs, availability assumptions and justification, power and heat outputs, utilities, residues and consumables quantities, life cycle replacement estimates, etc.

Review of existing permits to ensure that the requirements are adequately reflected in the specification and performance guarantees.

2.4.2.3 RES, North Blyth Biomass Power Plant Pöyry’s UK team provided technical support to RES for its proposed 100MWe biomass power plant project that was to be located at North Blyth in north-east England. Our services began in 2011 when we were commissioned to review the design concept and the constructability of the facility which was to be located on a constrained site. Subsequently, Pöyry was appointed as RES’s owner’s engineer and our services included:

Supporting RES in the selection of a contractor to carry out a FEED study that would lead to an EPC contract;

Technical supervision as owner’s engineer of the contractor’s FEED study, including review of the basic design and package procurement specifications;


Preparation of a minimum functional specification, performance guarantees and

technical schedules for the EPC contract;

Preparation of the O&M contract service specification and support through the tendering process;

Technical support with the negotiation of the EPC and O&M contracts prior to cancellation of the project by RES.

2.4.2.4 Centrica, Roosecote Biomass Power Plant Pöyry’s UK team led the services delivered to Centrica for the development of its proposed 80MWe biomass power plant that was to be located at Roosecote power station near Barrow in north-west England. This was a prestigious project given that it was the first biomass plant to be developed by Centrica and it was also one of the first projects to progress through the new Development Consent Order (DCO) process for permitting.

Pöyry was responsible for the FEED study that was to be the pre-cursor for EPCM delivery by Pöyry and was also responsible for the DCO application. Our services included:

Review of Centrica’s preliminary concept and refinement;

Preparation of the basic design, including detailed package specification for fuel handling, boiler and steam turbine.

Tendering of the main procurement packages and appraisal of the tenders.

Development of the basic design for the balance of plant and civil works.

Preparation of a construction programme.


Management of the DCO application process and technical support for

permitting and public consultation process.

Development of contract strategy and preparation of detailed EPCM proposal for the construction of the plant prior to cancellation of all biomass projects by Centrica.


3 PÖYRY’S OWNER’S ENGINEERING SERVICES

3.1 Key Risks to Project Delivery There are many risks to the successful delivery of any major engineering construction project and, in general, there exist proven project development methodologies and contract models that have been conceived to address these issues. The right skills and experience within the client’s, owner’s engineer’s and EPC contractor’s teams is always a fundamental requirement but several key areas of risk remain and are described below.

3.1.1 EPC Development Phase

3.1.1.1 Prequalification The initial pre-qualification of tenderers is important because this ensures that only contractors with appropriate experience; health & safety record; engineering and project management resource; and financial standing are invited to participate. This is essentially a preliminary form of client technical due diligence. If a contractor is selected without these essential ‘qualifications’ then these deficiencies cannot be remedied by the owner’s engineer later and may well result in technical deficiencies, programme delays and expensive disputes.

3.1.1.2 Tender Enquiry and Tendering The tender enquiry documents (TED) are important because these will usually become the client’s ‘specification’ for their requirements of the EPC contract, i.e. the TED forms a draft contract. It is fundamental that these define the project, the scope of supply, functional requirements and performance requirements. These should be in sufficient detail to ensure that all bids received are compatible and competitive but should not be too prescriptive such that each contractor can still add its own design expertise. It is essential that these documents steer the solution but retain full design responsibility with the EPC contractor and not the client or its owner’s engineer.

3.1.1.3 Performance Guarantees, Testing and LADs The performance guarantees and testing requirements define the conditions that the EPC contractor has to meet in order for the client to ‘take-over’ the plant. It is paramount that these performance requirements and demonstration tests are clearly and tightly defined in order to avoid the risk of exploitation and dispute later.

It is equally important that the liquidated damages are well defined such that there is no ambiguity over application in the event of performance shortfall or delays in project delivery. If the guarantees, testing requirements and LADs are not adequately defined then it will not be possible to repair these deficiencies later.


3.1.1.4 Programme and payment milestones

The programme and payment milestone address another key area of risk, i.e. delivery of the project on time. It is important that the programme defines sufficient detail, including the critical path, such that progress can be tracked during the contract.

At the contract definition stage, it is usual to receive a reasonably detailed programme that shows the key stages and elements of the design, procurement, fabrication, construction, commissioning, testing and taking-over process. It is even more important that the client’s requirements define the level of detail needed from the ‘contract’ programme and requirements for updating, reporting and, if needed, accelerating the programme. These ‘tools’ will be needed by the owner’s engineer to progress the contract. In addition, the programme will need to highlight the client’s obligations (e.g. delivery of utility connections, etc.) and will need to ensure sufficient float on these such that the risk of delay claims from the EPC contractor is mitigated.

It is also important that payment milestones are defined such that the owner’s engineer can use these to motivate the EPC contractor’s progress. The milestones should be easily verified without the need for expensive quantity measurement (e.g. completion of tasks, delivery of equipment, etc.).

3.1.1.5 Minimum Functional Specification The MFS needs to be sufficiently detailed as to ensure adequate quality and that the client’s key preferences are defined. Essentially, there needs to be sufficient detail that the potential for client variations during the contract is avoided.

If variations are needed, then the contract will need sufficient definition of prices and rates that the owner’s engineer can assess the reasonableness of any costs required by the EPC contractor, bearing in mind that the contractor will have no competitive pressures. The owner’s engineer will also need to assess the EPC contractor’s claim for impact on the programme and, in order to do so, the main programme will need to be detailed and with the ‘links’ between tasks defined. In practice, this is challenging to achieve within an EPC contract and hence the need for adequate definition within the contract.

3.1.1.6 Approved Sub-Contractors and Suppliers It is important to understand the proposed key suppliers and sub-contractors when the EPC contract is agreed and to limit the scope of the EPC contractor to save costs by using others. It may also be necessary to have some collateral warranties from key suppliers in the event that the lenders may need to ‘step in’. Without this protection, it will be difficult for the owner’s engineer to prevent the EPC contractor from using suppliers or contractors that are unable to deliver the required quality, or with whom the client may have previously endured bad experience.

3.1.2 EPC Delivery Phase From the risk highlighted above, it will be apparent that the foundations for successful EPC delivery by the owner’s engineer are laid before the EPC contract commences. However, some additional areas of risk during delivery are given below.


3.1.2.1 Health, Safety and Environment

It is fundamental that the EPC Contractor has a strong HS&E culture and that the contractor understands the requirements of the CDM Regulations, particularly in respect of its design responsibilities, and of the Environmental Permit. It is key that the EPC Contractor has all of the necessary HS&E procedures to control its sub-contractors safely and without risk to the environment.

It is usual for the owner’s engineer to review HS&E plans and procedures and to conduct regular site walk-arounds and periodic audits. These will ensure compliance but this does rely upon the EPC Contractor being experienced and having appropriate procedures and processes in place.

3.1.2.2 Design Review The design review process is important because this enables the owner’s engineer to verify that the EPC Contractor’s designs are compliant with the contract and, in particular, the MFS. The ‘ammunition’ for the owner’s engineer has to be within the MFS because the EPC Contractor is entitled to ‘interpret’ the specification and deliver compliance at minimum cost to the contractor. Provided that the design solution is compliant, then any preferential changes will need to be issued as a variation with potential cost and programme implications. Hence it is key that there is adequate definition within the functional requirements. It is also important that the design review process is well managed. All comments raised should be tracked by the owner’s engineer and closed out before significant stages of the programme (e.g. fabrication or construction) commence. It is equally important that changes to ‘agreed’ designs made by the contractor are subject to the same review process so that adequate thought is given to how best to overcome unforeseen problems.

3.1.2.3 Programme Management It is usual to receive a detailed programme from the EPC Contractor but not always possible to obtain copies in the original software that would enable the impact of delays on other tasks to be readily assessed. In these circumstances, the owner’s engineer will need sufficient information and resource to be able to track progress during the design, procurement, construction and commissioning phases and he may also need to construct his own programme for accurate tracking purposes.

More detailed programmes will be needed from the EPC Contractor for the design process and commissioning process in particular. ‘S’ curves are also needed in order to track this progress and see the early signs of deviations. This detail is essential if the owner’s engineer is to be able to demonstrate and prove the extent of delay to the Contractor and thereby to force him to consider acceleration. It is then important that the contract requires the Contractor to update the programme and to accelerate in order to achieve the agreed dates (NB albeit that the Contractor will weigh up these costs against the cost of delay LADs).

3.1.2.4 Commissioning and Testing The commissioning and testing period is often a very stressful time for the Contractor who will be under programme pressure and also for the client’s O&M team who will be


unfamiliar with the plant. It is important that the commissioning process is controlled and that detailed procedures are agreed for each element and that these are updated with any changes that are required as these will be used by the O&M team during any future re-commissioning.

These procedures must be submitted and reviewed well in advance and a detailed commissioning programme must be prepared and regularly updated. The EPC contract will need to make these requirements clear so that the owner’s engineer can insist that this is done. Without this, the process can be disorganised, delays can occur, permit breaches can occur and inadequate as-built documentation is also likely with potential adverse impact on future operation and maintenance.

3.1.2.5 Taking-over It is essential that the taking-over requirements are adequately defined in the EPC contract. These must cover matters such as final testing, O&M and as-built documentation, snagging list, spares, etc.

The requirements for performance testing are described above. It is very important that the requirements for demonstration of the pre-taking-over minimum performance and the reliability test are defined in detail. These represent the final hurdle after which the client’s right to reject the plant often falls away.

It is also important that the test procedures are prepared well in advance and are agreed in detail before any testing begins. Information to be recorded has to be agreed, instrumentation has to be calibrated and special test instrumentation has to be provided and installed. Responsibilities for testing need to be clear and, if this is to be done independently, then test agencies need to be arranged. If any of these areas are unclear in the EPC contract then testing and taking-over may result in dispute.

3.1.2.6 Final documentation The final as-built documentation is essential if the client’s O&M team is to operate the plant safely and efficiently. The EPC contract will need to have some means (e.g. financial retention) to ensure that final documents are provided within an agreed period following taking-over. The owner’s engineer will need to ensure that construction drawings, draft O&M manuals and commissioning procedures are all regularly updated by the EPC Contractor using a controlled process, or at least that changes are recorded and marked-up. Failing this there will not be a record of the changes made and obtaining accurate as-built documentation will become challenging as the Contractor’s team will be demobilised and re-allocated after taking-over.

3.2 Owner’s Engineer services

3.2.1 Basic skills needed as owner’s engineer Pöyry has provided owner’s engineering services globally to a very wide range of clients whose own engineering resources have varied considerably. Such client organisations range from large utilities (e.g Centrica, Scottish Power) to small developers, the latter typically having very limited technical resources.


The key skills that are needed from the owner’s engineer are:

Project and contract management know-how to include the formulation of the contract during the project development stage and management during implementation.

Experienced engineering resources to plan and specify the plant, define the performance guarantees and take-over testing and then to review the EPC contractor’s designs, provide specialist supervision support during construction and commissioning and finally to supervise the take-over testing and validate the results.

Procurement expediting resources to provide feedback about progress and to monitor compliance by the EPC contractor with quality criteria.

Experienced site supervision to monitor the construction, commissioning and testing phases, tracking progress, helping to manage interfaces, monitoring health & safety and checking quality and environmental compliance.

Pöyry is used to providing a full owner’s engineer service that includes all of the project and contract management as well as the engineering as ‘technical advisor’. The range of the owner’s engineer’s services is summarised below.

3.2.2 Project Development and Implementation Services Pöyry’s services as owner’s engineer vary from extremely detailed and ‘hands-on’ when providing an EPCM multi-contract solution, to a relatively simpler role when specifying and supervising an EPC contractor. The latter is typical of most Bio-Renewables plant projects built in the UK where the owner’s engineer’s services are typically as shown below:

DEVELOPMENT

Identification& Feasibility

ProjectDefinition

Statutory Approvals &

Key Contracts

Tender Enquiry& Evaluation

DesignReview

Defects Liability

WorkshopInspections

ConstructionMonitoring

CommissioningMonitoring

PerformanceGuarantees

AvailabilityGuarantee

BusinessIdea

ProjectApproval

Investment Decision/Financial Close Take-

OverFinalAcceptance

EPC or PACKAGE CONTRACT

IMPLEMENTATION

COMMERCIALOPERATION

Project / Contract Management

Pöyry has proven project development skills in the UK, having been responsible for the development of EFWs at Allington (560,000 t/yr, 40MWe) and Runcorn (750,000 t/yr, 70MWe) as well as several bio-energy projects that currently include the 299MWe CHP


plant for MGT. These skills have included initial pre-feasibility studies, feasibility studies, support for permit and consent applications, EPC contract tender specifications, tendering process management and supporting EPC contract negotiations. Similarly, Pöyry has provided implementation services as owner’s engineer for major international power projects for over 40 years. Apart from the bio-renewable CHP plants at Shotton and Irvine where the more detailed EPCM service version was provided, Pöyry has also provided owner’s engineer supervision for EPC contracts. In this role, Pöyry’s owner’s engineer implementation service is generally delivered in three elements, summarised below:

PROJECT & CONTRACT MANAGEMENT ENGINEERING SUPERVISION SITE ENGINEER

• administration of progress, contract & OE’s project team

• reporting to Project Mngr.• progress monitoring• payment & cost control• quality management• management of HSE• safety management• management of Take Over

and operation

• design review• HAZOP• audits & inspections• site technical support• project management

support• review documentation &

training• Witnessing of key

commissioningtests

• Witnessing of performance tests & approval of reports

• monitoring of progress• monitoring of construction

and commissioning • monitoring of HSE• review O&M and as-built

documentation• supervise training of

operator’s staff• defects notification &

snagging

OWNER’S ENGINEER

PROJECT MANAGER

Pöyry’s approach is flexible such that the client can provide some of these elements if desired. On some previous projects, for example, Pöyry provided the engineering and the client provided the project management and site supervision elements. For procurement surveillance, Pöyry’s other European offices prove very useful since it is often the case that an engineer can be sent to the supplier from a local office.


4 STAFF CAPABILITIES

A profile of key staff members with experience in the Bio-Renewables sector is given below.

4.1 Bio-Renewables and CHP Specialists

Julian Scutter – Head of Thermal and Renewables UK Experience – Mr Scutter has been with Pöyry Energy for 20 years and is the Business Manager for Thermal and Renewable Energy in the UK. Prior to this Julian was an incineration and energy-from-waste (EfW) specialist with Atkins for 10 years where he led the development of several EfW plant improvement projects, including a new bottom ash handling & storage system at Edmonton and the study that led to the addition of the first steam turbine at Coventry. At Pöyry Julian has responsibility for business development of the full range of thermal and renewable energy expertise offered in the UK and is also a specialist in EfW and CHP and an experienced project manager. His experience includes the supervision of all of the Bio-Renewables power plant and CHP plant development work undertaken by the UK Thermal & Renewables team.

Since joining Pöyry, Julian has led the development of many new and rehabilitation EfW and CHP projects over the past 20 years. In the late 1990s he provided specialist technical expertise for rehabilitation projects at Nottingham (flue gas treatment) and Sheffield (flue as treatment & CHP). More recently he was the project manager for the 560,000 tonne/year EfW plant at Allington near Maidstone. Julian was involved with the Allington project for 7 years and led the feasibility and project development phases before becoming project manager for the Owner’s Engineer during implementation.

Julian also led the successful development of the RDF fired EfW CHP plant in Runcorn for INEOS-Viridor-Laing that included the initial feasibility study, technical support for the permitting and development of the EPC specification and EPC contract up to financial close. In addition, he has been Viridor’s expert witness, providing technical support for several MBT-AD plants, IVC plants and an MRF plant.

Most recently, he has been managing the final technical development work and EPC contract negotiations needed to bring MGT’s 300MWe biomass project to financial close.

Mike Murphy – Principal Engineer Thermal and Renewables UK Experience: Mr Murphy is a Principal Engineer with 30 years’ experience in power generation and is based in Pöyry's UK office in Horsham. Mike is a highly experienced engineer with excellent knowledge of power plant, CHP plant and energy-from-waste plant systems.

Mike has an extensive, broad-based experience of CCGT, energy-from-waste, and diesel power generation installations up to 1000 MW within the UK and overseas. His experience has been gained in rotating plant, mechanical handling equipment and in the hands-on optimisation of plant performance and in the operation and maintenance of power stations, CHP plants and energy-from-waste plants.

Mike has particular expertise gained from his time with as a construction manager with Balfour Beatty Engineering Projects in site construction, commissioning and


contract management, of mechanical systems including gas turbines, diesel engines, fluidised bed boilers, cooling water pumps, gas/air compressors and chemical injection systems. Whilst with Balfour Beatty, he was the construction, commissioning and test manager for the EfW plant at Dundee and the CCGT CHP plant for Iggesund in Workington. Since joining Pöyry 10 years ago, Mike has led and supported work on a wide range of bio-renewable projects including EfW, CHP and biomass schemes. In the field of EfW, Mike supported the final stages of reliability and performance testing at Allington and the subsequent monitoring of the availability test and defects warranty period. He has also supported the development of a range of other EfW projects, including early development in support of the proposed EPC contractor at Gloucester.

Mike was recently Project Manager for work completed for RES on their North Blyth 100MWe biomass project that included the technical supervision of a FEED study by the proposed EPC contractor, the preparation of functional specifications and performance guarantees for the EPC contract and a constructability review.

Mike has also been responsible for the design of the fuel reception, unloading and handling systems and related fire protection systems for a FEED study design for the conversion of 450MWe Lynemouth power station from pulverised coal to wood pellets. He also managed and led the Front End Engineering Design study and development of a 300MWe biomass CHP power station in Teesport, UK.

Ben Colenbrander – Principal Engineer Thermal and Renewables UK Experience: Ben Colenbrander is a highly experienced thermal design engineer with over 30 years’ experience in the power plant sector and is a design specialist in CHP plants. He has extensive experience in project engineering and in the conceptual and detailed design of power stations using a range of fuels and combustion technologies. This experience includes a wide range of biomass, waste, coal, gas and diesel powered CHP and power plants (co-generation and tri-generation), district heating systems, waste heat recovery boilers, steam turbines, condensers and cooling systems.

His previous employers have included two power plant developers, Advanced Power and Rolls Royce Power Ventures and two large contractors, Balfour Beatty and Mitsui (now Doosan) Babcock. For Mitsui Babcock, he was a Principal Project Engineer responsible for managing significant design teams associated with introduction of gas-reburn technology to reduce the NOx emissions at Longannet and for two major coal fired stations in China.

Since joining Pöyry, Ben led the supervision of final guarantee performance testing at the Allington EfW plant and subsequently led the team that investigated the causes of failure of the steam turbine. He also led the thermal design for several EfW development projects including as contractor’s engineer for the proposed plant at Gloucester.

Ben’s recent Bio-Renewables experience also includes leading the technical side of the tender appraisal and EPC contract negotiation for MGT’s 300MWe biomass plant at Teesside, leading the design for a FEED study for the conversion of the pulverised coal power station at Lynemouth to burn wood pellets, supervising a major FEED study for the conversion of another existing coal fired power plant to burn 100% biomass fuel for Scottish & Southern Energy, and also project managing


and leading the due diligence study for the acquisition of a large 300 MWe biomass power plant for another large UK power utility.

Ben has carried out many studies of CHP plants and one of his most recent was for Tata Chemicals in the UK. Ben helped Tata to purchase the outsourced CHP plant and then helped optimise its operation, including the design, specification and procurement of a new back-pressure turbine that has resulted in significant increase in revenue due to increased power generation.

Helen Moon – Senior Engineer Thermal and Renewables UK Experience: Ms Moon has an MSc in Mechanical Engineering and was a graduate trainee with Alstom Power Technology. She specialises in thermal and power plant engineering and has gained experience of project development and implementation for a range of new and rehabilitation projects.

Helen was the project engineer for the detailed Front End Engineering Design work which Pöyry carried out for the 80 MWe biomass power plant that Centrica was planning at Roosecote. She was also the project engineer for ScottishPower for a FEED study for a 20MWe biomass power plant that would burn dried sewage sludge and waste wood. Helen has also assisted with the development of new EfW facilities for Hull and Lincoln and recently completed for Viridor the construction of the Exeter EfW plant as Project Manager and is presently Project Manager for Viridor’s facility at Dunbar which is under construction.

Ian Jeffcoat – Associate Consultant, Thermal and Renewables UK Experience: Ian is now an Associate having previously been a Principal Engineer within the Thermal and Renewable Energy team for six years. He has considerable experience of energy project development in the UK and worldwide utilising a wide range of fuels including biomass, sewage sludge, MSW and fossil fuels. Ian has more than 30 years’ experience in process engineering design of thermal processing, combustion, incineration and biofuels systems coupled with sales and project management of process plant, equipment and turnkey process systems. Ian was the project manager and lead technical specialist for the work carried out by Pöyry for a new 80 MWe biomass power installation in the UK for Centrica at Roosecote. He led the development of this project from the initial concept, helped to steer it through Front End Engineering Design and the DCO permitting processes. Ian has also provided similar services in the past to Scottish Power for another biomass power plant of 20MWe capacity. Other recent work has included project development assistance for the large SRF fired EfW project for Ineos-Viridor-Laing in Runcorn up to financial close, a detailed feasibility study for EPRL for a 40 MWe waste wood biomass power plant including supporting the permitting process, the concept design review and development of a 65 MWe waste wood biomass power plant and the feasibility study, capital and operating cost estimate, concept review and development of a 300 MWe biomass plant for Anglesey Aluminium, and specialist technical support in the appraisal of MBT and EfW tenders for Bradford and Leeds.


Jarno Kaskela – Senior Advisor Combustion Systems

Experience: Mr Kaskela joined Pöyry in 1995 and has over 20 years of experience with the company as a boiler and combustion specialist. During the first three years he worked in the Boilers and Emissions Control Section of the Power Department in Helsinki. He spent two years working in Singapore as a power plant specialist before leading the Heat & Power team in the UK during 2002. Jarno then returned to Helsinki as a specialist in the Boiler Section before becoming the manager of the Boiler Technology Group from 2006.

Jarno is a highly experienced specialist in boiler plant, flue gas treatment and fuel handling for a very wide range of Bio-Renewables and fossil fuel technologies that includes energy-from-waste and multi-fuel plants. He has managed many development projects, including for CHP applications, most of which have used multi-contract implementation models (e.g. EPCM for Vantaa EfW CHP plant). Jarno also has extensive experience of guarantee testing for boiler and flue gas treatment plant. Jarno has been involved with the development of several energy-from-waste plants and was responsible for the waste incineration plant, flue gas treatment system, flue gas condenser and heat recovery steam generator for the recently operational Vantaa EfW CHP plant. His responsibilities include the concept development, specification, design review, interface coordination and final performance guarantee testing.

Guenter Nebocat – Project Manager and Energy-from-Waste Specialist Experience: Mr Nebocat joined Pöyry in 2003 and has over 25 years of experience in the energy-from-waste sector. Guenter began his career with Lurgi where he gained experience with waste incineration, heat recovery and flue gas treatment plant as a designer, project engineer and commissioning engineer.

Since joining Pöyry, Guenter has been involved in the development and implementation of several prestigious energy-from-waste projects including Oberhausen, Mallorca, Vantaa, Shanghai (sludge) and Beijing. In Mallorca, he was responsible for the concept development, basic engineering, tender documents and commissioning management for the main plant ‘lots’ that included the waste reception, combustion grate and boiler, flue gas treatment plant, turbine and air cooled condenser. In Beijing he has been responsible as Project Manager for the EfW plant from the initial design phase through to taking over of the plant.

Guenter’s experience in the UK began as process engineer and commissioning engineer for Lurgi’s sewage sludge incineration plant at Crossness. Since joining Pöyry, he has supported the early development stages for several projects including a biomass CHP plant at Ridham Dock and various projects under development in the UK for Urbaser.

Juha Virtanen – Project Manager and Bio-Renewables & CHP specialist Experience: Mr Virtanen has over 20 years of expertise in process engineering and power plant technology as well as in project management. He has wide experience of managing a range of power and CHP projects from concept development through to final implementation. His most recent projects include the biomass CHP plants at Jelgava in Latvia and Jarvenpaa in Finland but he has extensive experience in the design and implementation of numerous other CHP plants. These also include the biomass


CHP plant at Irvine in Scotland for UPM where Juha was the Project Manager. All of these schemes have been built using the multi-contract EPCM approach and where Pöyry has also provided detailed design expertise for the civil, structural, electrical and automation engineering.

Harri Rasanen – Combustion, Boiler and CHP specialist Experience: Mr Rasanen has been with Pöyry since 2006 and has over 15 years of experience as a specialist in combustion, heat recovery, flue gas treatment, solid fuel handling and CHP from concept development through to implementation. He has been responsible for basic design, procurement specifications, tender evaluations and contract negotiations, construction supervision and commissioning for several multi-contract EPCM projects. His projects have dealt with a wide range of bio-renewable and fossil fuels that have included MSW, RDF, biomass, oil shale, sludge, peat, wood, bark and coal.

Alejandro Nocito – Senior Consultant and specialist in combustion systems Experience: Mr Nocito joined Pöyry in 2007 and has over 20 years of experience in the power plant sector ranging from concept development, detailed engineering, supervision of design and construction and commissioning. His broad power plant experience includes bio-renewable fuels for conventional combustion and also gasification as well as flue gas treatment plants and power plant balance of plant systems. Alejandro has recently been involved in the design and EPC tendering for an energy-from-waste plant in Finland and for a major biomass power plant in Belgium.

Berndt Naumann – Project Manager and Waste Incineration & CHP specialist Experience: Mr Neumann joined Pöyry in 1991 and has over 30 years of experience with CHP power plants, energy-from-waste, flue gas treatment and turbine steam cycle plants. His expertise covers concept development and feasibility through specification and detailed design to commissioning and testing. He has experience from a long list of EfW, CHP plant, sludge and hazardous waste incineration projects that includes: Hamburg, Cologne, Brunsbuettel, Rostock, Muenster, Neumuenster, Frankfurt and Beijing.

Esa-Pekka Kapanen – Project Manager and CHP & steam turbine specialist Experience: Mr Kapanen has been with Pöyry for over 20 years and is a Senior Advisor in Thermal Power within the Power Plant Technology Department in Helsinki. He has over 25 years’ experience gained from various types of power plant projects internationally. He is a specialist in design, procurement, construction supervision, commissioning and optimisation of steam turbines, turbine installations and related balance of plant equipment. Esa-Pekka’s experience includes a long list of CHP plants that have used a variety of fuels such as MSW, biomass and conventional fossil fuels.

4.2 Other key discipline specialists A brief profile is given below for some other key Pöyry specialists in the areas of civil & structural engineering, electrical engineering and automation.


4.2.1 Civil & Structural

Tom Hogman –Civil & Structural Engineering Experience: Mr Hogman joined Pöyry in 2006 and has more than 25 years’ experience from heavy industrial projects as either a structural engineer or as a project manager for the civil design. In recent years he has been involved in many projects where Pöyry has built projects using the EPCM multi-contract model and where detailed civil design has been required. Tom’s projects have covered a wide range of power plants and CHP plants and his most recent responsibility has been for the specification and supervision of the civil and structural works of the Vantaa EfW CHP plant near Helsinki.

Manfred Schilling – Civil & Structural Engineering Experience: Mr Schilling has over 30 years’ experience in the design of civil and structural engineering works associated with energy-from-waste plants, CHP plants and thermal power plants. His experience covers preliminary design and planning as well as detailed design and specifications. His energy-from-waste plant experience includes Rudersdorf, Andernach and Taiwan and his biomass and CHP plants include Konigs-Wusterhausen, Menteroda, Delitzsch and Munster.

4.2.2 Electrical and Automation

Juha Pirkkalainen – Electrical and Automation Engineer Experience: Mr Pirkalainen has over 20 years’ experience in the systems analysis and design of electrical systems for energy-from-waste, CHP and thermal power plants. Before joining Pöyry in 2003, Juha was a project manager for Electrical systems within Fortum, a major power plant utility owner/operator. He has been responsible for the design of electrical systems for a long list of plants that most recently includes the Vantaa EfW CHP plant.

Tuomo Haanpaa – Automation Engineer Experience: Mr Haanpaa has over 20 years’ experience in control and automation systems for thermal power and CHP plants. His experience includes initial feasibility studies, project management, detailed design, procurement, site supervision and testing for a wide range of projects implemented using the multi-contract EPCM model. Tuomo’s recent projects include the Vantaa EfW CHP plant.

Jari Wallenius – Automation Engineer Experience: Mr Wallenius has over 15 years’ experience in the control and automation for thermal power and CHP plants. His work has included the conceptual development of the design of automation systems as well as the detailed design, procurement, site supervision and testing of the control systems.


5 QUALITY ASSURANCE Pöyry Energy Ltd’s Quality Management System, has been assessed and registered as meeting the requirements of ISO 9001:2008 by SGS Yarsley International Certification Services Ltd, Certificate GB94/3244. The product areas covered are:

Consultant engineering services for:

Project Engineering Project Management Feasibility and Planning Studies Economic Analysis Safety Assessments Environmental Assessments Engineering Analysis Design Studies Human Factors Assessments

A copy of the accreditation certificates are shown in Appendix 3.

6 ENVIRONMENTAL POLICY Pöyry Energy operate an Environmental Management System accredited to ISO 140001:2004 and audited by our independent auditors SGS Yarsley International Certification Services Ltd. The accreditation certificate (GB 10/80376) which is valid to 15th September 2018 states that our offices are accredited in relation to the following activities:

Project Engineering.

Project Management.

Feasibility and Planning Studies.

Economic Analysis.

Safety Assessments.

Environmental Assessments.

Engineering Analysis.

Design Studies.

Human Factors Assessments. Our policy on Environmental Management is to meet statutory and regulatory requirements, minimise our use of resources in pursuit of sustainable development principles and support customers’ environmental performance where applicable. In supporting clients we will assist them in achieving their environmental objectives, through an understanding of best practice and will encourage them to adopt sustainable design solutions where relevant to our scope of work. A copy of the current accreditation certificate and our environmental policy statement can be found in Appendix 4.


APPENDICES

APPENDIX 1 –REFERENCE LISTS


APPENDIX 2 – PROJECT SHEETS


APPENDIX 3 - QUALITY ASSURANCE


APPENDIX 4 – ENVIRONMENTAL POLICY AND CERTIFICATE

bio-renewables capability

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