Tortosa Energia Cogeneration Plant - Tortosa, Tarragona, Spain

First Project-Financed Power Project In Spain.  This LM2500 Combined-Cycle project afforded us an opportunity to apply many of the full range of project services that we offer. Sterling Energy was intimately involved with this project from its early development through early commercial operation.

Initially, we provided economic modeling services in support of equity investment and financing decisions. This work was continuously refined and expanded to become a comprehensive and interactive revenue, cost and thermal performance model that is an integral part of the suite of management and accounting systems to support informed decisions by the Plant Manager and the Owner in a complex business environment.

As the project took shape, we participated in discussions with prospective EPC Contractors. Sterling Energy engineers wrote the entire technical specifications section of the EPC contract, then actively participated in negotiations with the selected contractor. During the detailed engineering phase, we provided design reviews for operability and maintainability. During the six months immediately prior to plant acceptance, we provided the owner’s Project Manager. Finally, Sterling Energy provided technical and commercial leaders of the team that negotiated the final settlement with the EPC contractor.

As is our normal practice with full-scope mobilizations, a full-time Sterling Energy professional acted as Plant Manager during the team mobilization, training and startup period. His first responsibility was to “set” the desired culture of the new organization. As part of doing so, he also directed the staffing and training of the Team Members and implementation of all of the management systems provided by Sterling Energy, as well as directing O&M team’s support of plant startup.

We are, as always, extremely proud of the team we hired and trained for this organization. The permanent Plant Manager was initially an American expatriate with extensive experience on a similar plant. He was recruited in the United States and attended an extensive management course in Sterling Energy’s home office before assuming leadership of the plant and the team just prior to the start of commercial operations.  He has since trained his Spanish replacement. All of the other Team Members are Spanish citizens, none of whom had any combustion turbine operating experience before joining the team. Sterling Energy and the EPC contractor provided comprehensive training.

The total size of the entire organization is 16 persons, including Plant Manager, Business Manager, Accountant and Secretary.

Sterling Energy was completely responsible for establishing a self-sufficient Spanish business entity to conduct all aspects of business for this project, including general ledger accounting for the owners, payroll for the team, fuel purchase and power sales contract administration, and management of the combustion turbine and other maintenance contracts.

We provided a complete set of management policies as well as all administrative and operating procedures. We also implemented a computerized maintenance and materials program, and purchased the initial inventory of spare parts for the facility.

Project Development Services

• Proforma economic model
• O&M cost projections
• Technical specifications
•  EPC evaluation & negotiation
•  Major maintenance contracts
• Evaluation and negotiation

Project Management Services

• O&M design review
• Project Manager (Seconded)
• Punchlist & timeline preparation
• EPC closeout negotiations

O&M Team Mobilization

• Team structure and culture
• Team recruiting
• Training program management
• Maintenance program implementation
• Spare parts procurement
• Policies & procedures
• System Sponsor Program

Business Entity Initiation

• Local pay & benefit plans
• Payroll setup
• Business licensing
• Accounting program setup & training
• Comprehensive revenue, expense and thermal performance model
• Business planning
• Procurement and customs programs

 

Plant Location:

     Tortosa, Tarragona, Spain

Commercial Operation Start:

     October 1996

Plant Description:

     LM2500 Combined-Cycle

     27.75 MW Net

Plant Owner:

     Tomen Power Corporation

Developer/Operator:

     SeaWest Services

EPC Contractor:

     Deutsche Babcock S.A.