The objective of this study is to investigate the potential of combined heat and power plants based on gas engine technology in Algeria. This market analysis has been performed in order to identify the key markets for the newly created French subsidiary of Clarke Energy Group to expand its business in North Africa.
After analyzing the structure of the Algerian energy sector and the potential of each gas engine application, three key sectors were identified. For each sector, a technical and economical analysis was conducted in order to define its potential, its constraints, and the time frame under which they could become mature markets.
With a potential of 300 MW, the first targeted sector is related to the national power utility Sonelgaz and consists in small scale power plants with a nominal power output < 20 MW, in which the use of gas engines instead of gas turbines could reduce up to 50% the price of kWh generated over the lifecycle of the plant.
With a total of 450 MW, the second market representing a great potential for gas engines development in Algeria is the industrial sector and in particular brick factories, in which cogeneration plants become profitable within 4 years, can save up to 40% of primary energy and generate electricity whose cost of production is 30% lower than the average grid price.
Finally, the third sector identified is the associated petroleum gas from which 9% – 5.10 cubic meters – are is still being flared in Algeria while they could be used to generate up to 300 MW for the O&G utilities if only 10% of them would be recovered, reducing thus CO2 emissions and diesel costs.
This report presents the method and the tools that were developed in order to analyze the economical viability of gas engine based power plants for the three targeted markets in Algeria, and the final results from the study.
Source: KTH
Author: Michaut, Stephane
