Presented by:

Dipl.-Ing. Andreas Zemelka

Director Power Plant Division

Pre-owned power plants

as an alternative and effective solution

for energy problems

Presented by:

Dipl.-Ing. Andreas Zemelka

Director Power Plant Division

Content:

2. Source and condition of “pre-owned” plants

3. Comparison of “new” and relocation project

4. Lohrmann International - scope of services

1. Introduction of Lohrmann Group

5. Pre-owned power plants - summary

1. Introduction of Lohrmann Group

LOHRMANNN GROUP at a glance

• Lohrmann Group is a traditional trading house specialised in

buying/selling oil refineries and power plants world-wide

• The company exists over 50 years and is entirely

family-owned.

1. Introduction of Lohrmann Group

Lohrmann International GmbH

Subsidiaries Offices Divisions

Lopex AG

Lohrmann Nigeria

Ltd.

Lohrmann Montage

Ltd. Havanna

Lahore

Istanbul

Berlin

Wiesbaden, HQ

Zug

Windhoek

Mumbai

Power Plants

Oil Refineries

Processing Plants

Lagos

Resources

LOHRMANNN GROUP at a glance

1. Introduction of Lohrmann Group

LOHRMANNN GROUP at a glance

PPD Power Plant Division

RBD Refinery Business Division

LOHRMANN Montage

2. Source and condition of “pre-owned” plants

Approx. 300 MW lignite fired power plant

available for sale and relocation

Ref.: PS-18.30

2. Source and condition of “pre-owned” plants

• techno-commercial reasons

(e.g., fuel price raised, power price dropped, depreciation,

efficiency,...)

• political reasons

(e.g., subsidies, fuel strategies)

• expiry of power purchase agreement (PPA)

• expiry of fuel supply agreement (FSA)

• insolvency

(during construction or in an early stage of operation)

Typical reasons for power plant shut-downs

• Process industry, utilities, IPPs

• Europe (in particular, West-Europe)

Typical sources of pre-owned power plants available for relocation

2. Source and condition of “pre-owned” plants

2. Source and condition of “pre-owned” plants

Approx. 167 MW

Combined Cycle Power Plant

available for sale and relocation

Ref.: GT-CC-0071

• brand-new, unused (construction not completed, never operated)

or

• very good, “as new” (low operating hrs, long residual life time)

or

• good (e.g., equipment well maintained, modified,

renewed, replaced, rehabilitated, overhauled,

upgraded)

Pre-owned plants form an ideal basis for

fast-track, low-budget energy projects.

2. Source and condition of “pre-owned” plants

Condition of “pre-owned” plants/equipment

3. Comparison of “new” and relocation project

Example: 230 MW Combined Cycle Power Plant (Ref. GT-346):

3. Comparison of “new” and relocation project

Typical project time schedules (based on GT-346):

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 t

Feasibility

Study Specification

Tendering

Project execution

Contract

signing

Possible delay

Conceptual Study

(based on existing

information/data)

Dismantling

Project execution

Contract

signing

Possible delay

Shipment & transportation

New power plant

Relocation of pre-owned power plant

Time advantage

Plant life time

Break-even point

Project

duration

New power plant

Project costs/ernings: “new” project

3. Comparison of “new” and relocation project

Plant life time

Break-even point

Project

duration

Relocated pre-owned power plant

3. Comparison of “new” and relocation project

Project costs/earnings: relocation project

time

Break-even point

∆t1 ∆t2

α1

time

Break-even point

α2

Project

duration

(100%)

Project

duration

(30-50%) Relocated pre-owned power plant

New power plant

3. Comparison of “new” and relocation project

BEP

„pre-owned“

BEP

„new“

Project costs/earnings: “new” versus relocation project

• Immediate availability for relocation

• Considerably lower price

• Earlier earnings (compared with a new plant)

Main advantages of “pre-owned” plants

4. Pre-owned power plants - Summary

• Proven design and performance

• Inborn problems/errors have already been solved

• Availability of plant maintenance/operation records

• Advance due to knowledge/experience of the

“old” operation/maintenance staff

• Involvement of original equipment manufacturers

(OEM) and selected specialised companies

• Selection of an appropriate contract model for

relocation project

Compensation of possible risks

4. Pre-owned power plants - Summary

• Effective solutions to bridge power shortages, black-outs

• Stand-by function for overloaded grids and as emergency

• Short term availability of project related funds

• Short planning and realisation periods

(e.g., for political reasons)

• A power plant with a long design life is not required

(uncertain future)

Typical demand for fast-track projects with “pre-owned” plants

4. Pre-owned power plants - Summary

Although we cannot consider relocation of pre-owned power plants

as an ultimate solution for all power problems,

but:

4. Pre-owned power plants - Summary

Relocation of “Pre-owned” power plants - Conclusion

It can considerably contribute to solving power

problems on short and middle term basis

It’s frequently the only feasible solution

as an alternative to a new plant

(fast-track and low-budget power project)

It constitutes a lucrative and safe investment

opportunity

5. Lohrmann International - scope of services

LOHRMANN’s approach

This unconventional idea:

“relocation of pre-owned power plants”

is not new!

However, based on more than 30 years of experience

LOHRMANN has developed:

an optimized professional approach!

5. Lohrmann International - scope of services

LOHRMANN’s approach

• Provision of important services, e.g.:

Professional plant selection and condition assessment

Conducting studies/pre-studies

Tailor made package solutions

• Involvement of professional partner companies (e.g.,

OEMs) with the result:

Commitment to carry out overhauls and upgrades

Provision of certain warranties

Commitment to close a LTSA

• Assistance during project execution

5. Lohrmann International - scope of services

LOHRMANN offers:

• Sale and delivery of pre-owned plants

(e.g., GTs, STGs, CCPP, coal/biomass power plants,

Diesel/gas gen-sets)

• Tailor-made service packages

(e.g., studies, re-engineering, overhauls, assistance during

construction and commissioning, EPCM by strategic

alliances and partnerships with OEMs, consulting

companies and other specialised service providers).

Lohrmann International GmbH

Taunusstrasse 5a Tel. +49 611 50402 0 www.lohrmann.com

65183 Wiesbaden, Germany Fax +49 611 50402 50 info@lohrmann.com

Thank you for your attention!