Enefit Industry Announced A Turnkey Procurement For A 100-Megawatt Thermal Power Plant With Hydrogen Capability

Enefit Industry AS plans to construct a 100-megawatt hydrogen-capable gas engine thermal power plant within the Narva Balti Power Plant complex under a turnkey construction contract. The announcement of the tender is a prerequisite for participating in Elering’s frequency reserve procurement and for making a potential investment decision.

In the procurement announced on 28 April, the company is procuring a power plant intended for combined heat and power generation and the provision of frequency reserves. The planned power plant will have a total capacity of approximately 100 megawatts. It will be based on gas reciprocating engine technology, with each engine having a capacity ranging from 4 to 13 megawatts. The plant is expected to operate primarily on natural gas or biomethane and to already be able to use up to 25% hydrogen by volume as fuel.

‘The situation on both the frequency markets and the day-ahead electricity market clearly shows that Estonia needs new flexible and dispatchable generation capacity. The advantage of a dispatchable gas-fired power plant is its rapid start-up, enabling a quick response precisely when electricity prices are high,’ said Lauri Karp, Chairman of the Management Board of Enefit Industry.

In addition to electricity generation, the power plant will also produce thermal energy. During its operating hours, residual heat from the gas power plant can be supplied to the Narva district heating network. ‘This power plant will not solve Narva’s heat supply challenges, but it does offer an additional source of thermal energy and enables more efficient use of residual heat generated in the power plant,’ noted Karp.

The estimated value of the public contract is €100M, and the power plant is scheduled for completion in 2028. The qualification phase of the procurement runs until 29 May. Enefit Industry expects to receive preliminary tenders by the end of June this year. The power plant is to be developed in response to the frequency reserve procurement announced by Elering.

The procurement notice is available at: Public Procurement Register 6.1.0 (https://riigihanked.riik.ee/rhr-web/#/procurement/8756724/general-info)