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12 August 2008 - Denmark-based Babcock & Wilcox Volund (B&WV), a subsidiary of Babcock & Wilcox Power has signed an agreement potentially worth up to €100m ($156m) to supply biomass plants that use its combined cycle gasification (CCG) technology to Advanced Renewable Energy Ltd. (ARE) in Italy.
Under the terms of the 10-year agreement, B&WV will be the exclusive supplier to ARE using CCG technology in as many as 25 small-scale, biomass-fueled power plants. B&W Volund anticipates orders for six plants in 2008, with the first scheduled for commercial operation in the first quarter of 2010.
B&WV has previously licensed its gasification technology in Japan and continues to pursue licensing opportunities around the world.
Each of the power plants, to be built in Italy, will be designed to produce 4 MW of electricity using wood chip biomass to produce gas fuel for engines that will drive electric generators.
Heat in the flue gas produced during the combustion process will be recovered in a heat recovery boiler, producing steam to drive a steam turbine/generator and allowing the plant to operate at an electrical efficiency of approximately 45 per cent. This is nearly double the electrical efficiency of a traditional, small biomass plant in Europe.
Italy's rapidly growing forest products industry will provide an abundant supply of wood chips to produce the plants' fuel.
Additionally, the Italian Environmental and Energy Authorities issue "Green Certificates" to companies using environmentally friendly technologies such as biomass CCG, thereby reducing utilities' power costs and increasing the potential market for this technology.
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