Essar starts 1st phase of Vadinar power expansion

Essar Energy today said it has commissioned the first phase of the expansion of its Vadinar power plant in Gujarat.

The company said it has started producing electricity and steam from the plant, which will be used at its adjacent 12 million tonnes per year-capacity oil refinery.

The London-listed integrated energy company plans to increase its operating capacity from 1,220 megawatt (Mw) currently to 11,470 Mw by end of 2014.

The Vadinar power plant expansion is being implemented in two phases, including the steam capacity, which will increase the total installed capacity by 890 Mw.

"The first phase (Vadinar P1) consists of 380 Mw, comprising 220 Mw of gas fuelled power generation capacity and 630 tonnes per hour of steam capacity. The entire power and steam output will be sold under a long term contract to Essar Energy's Vadinar oil refinery," the company said in an e- mailed statement.

The second phase (Vadinar P2) of the project consists of a multi-fuelled (coal, naphtha, light cycle oil, clarified slurry oil and furnace oil) co-generation power plant of 510 Mw, comprising 325 Mw of power generation capacity and 900 tph of steam capacity.

Essar Energy CEO Naresh Nayyar said: "The Vadinar P1 power station is the first to enter commercial operations since our IPO and has been delivered within its original budget of $160 million."

"The power and steam it produces will allow Essar Energy to improve the operating efficiency of the Vadinar refinery, increase the security of power and steam supply and lower our environmental impact," he added.

The Plant shall supply both power and steam to Essar Oil (a subsidiary of Essar Energy) for the supply of 300 Mw of power and 1,530 tph of steam capacity from both phases of the expansion.

In conjunction with the second phase of the expansion, the Power Plant is installing 2 Multi Fuel Fired Boilers and 3 Steam Turbine Generators of 100 Mw each, the statement said.

"The entire facility is being installed as a brown field project within the premises of Essar Oil Refinery complex, where full infrastructure is available," it added.