Enerjisa, the Turkish electricity producer owned by E.ON and Sabanci, is building a new coal power plant in Tufanbeyli, commonly known as Enerjisa 2.5. The lignite-fired thermal power plant is expected to go operational in 2015, with a capacity of 450 megawatt. The project also includes the operation of the neighbouring mine, which will be used to provide fuel for the plant.
Enerjisa is a 50-50 joint venture that was initially formed in 2007
between H.O. Sabanci Holding A.S. from Turkey and Verbund
International GmbH from Austria, a wholly owned subsidiary of Verbund AG. Sabanci is one of the leading industrial and financial
conglomerates in Turkey. Verbund's share in the joint venture was taken
over by Germany's biggest power group E.ON in December 2012, swapping
it against E.ON's interest in eight run-of-river plants in Germany plus
other assets in a deal worth more than USD one billion. The joint venture
Enerjisa is the second most important power producer in Turkey.
After the deal, E.ON announced that it was planning to more than
double Enerjisa's share in the Turkish power generation capacity. As
part of the deal the company is aiming to invest EUR150-200 million
annually in Turkey until 2015.
what must happen
Sabanci Holding, Enerjisa must drawback the project as a leading company in Turkey who is willing to invest on renewables. Coal is not sustainable and the best choice for Turkey's energy need. In the next few years, government and companies have to make energy decisions that will have to live with them for the next 60 years. So energy policy making is crucial for energy security and environment in this momentum. It is time to create an environment to shift investments. There is no way for a thermal coal mine to be sustainable. The only option is for the coal to remain safely sequestered in the ground.
Banks and other financial institutions, already involved, should immediately stop their funding to the Tufanbeyli coal power plant project of Enerjisa.
The impact of the project on each village depends. Kayarcik village is giving most of its land to the Plant Station area, whereas the lignite mine will predominantly affect Yamanli village. Taspinar village on the north is going to be affected by the mine area as well. Kayarcik village is the most affected village in the power plant area. The village will lose its irrigated land to the Project's power plant area. Kayarcik is the largest village in the project area with a household size of 400 households and a population size of almost 1,000 people. During summer times, the population almost doubles.
The major economic activity of the village is agriculture. Potato farming is widespread, majority of villagers rent their land and work on their own land as daily workers. Yamanli village is going to lose almost 90 percent of the arable land at the initial plan of mine area. Even though the mine area is going to be rehabilitated and can be hypothetically available for farming once the mine sources are exploited, it will take decades before the land is suitable for cultivation once again.
In January 2015, local residents protested against the use of foreign
workers at the construction site, arguing that project developers should
be using local labour.
The Sariz River/Magara Creek flows from north to south, 2.5 kilometers west of the Tufanbeyli power plant and approximately centrally through the alluvial plain that yields the lignite deposits. The Magara Creek is one of the major sources to the Catalan Dam which provides drinking water for the Adana Province. A number of other small tributaries are present in the area. The nearest human population is Yamanli village, approximately 750 persons, located 2.8 kilometeres west of the power plant, which is on the western boundary of the proposed lignite mine. There are four other villages in the local vicinity: Pinarlar, Taspinar, Kayircik and Yesilova. The total population of the Tufanbeyli District in 2011 was approximately 17,500. The surface waters in the area are used for drinking water, irrigation and livestock. The surface waters also support amphibians.
Protected areas in the region include the Kurebeli Canyon Wildlife Development site, 45,000 hectare, located 17 kilometres northwest of the Project site. The Kurebeli site is designated for game animals, and an important archaeological site, "Sar" city, which was the regional centre of the Hittites, located approximately 20 kilometres to the north east of the Tufanbeyli District. There are 15 reptile species present in the local area which are protected by the Bern Convention from 1979. A recent ecology survey identified up to 50 bird species in the region and up to 15 mammalian species. No globally threatened species of mammals or birds have been identified. Any species identified on the project site are also present in the wider area.
Lands which were previously used for cultivation and legally divided into different parcels will be combine into one piece of land. Only a part of which are acquired by Enerjisa, might be available for recultivation, because the other parts of the land in the mine area can be re-used by farmers if they will be expropriated by the Energy Market Regulatory Board and become public lands. Furthermore, topographical structure of these lands, acquired by Enerjisa or EMRA, will change after the mine sources are exploited. Therefore, it is difficult to restructure these lands for them to be available for farming, same as before. Considering the lack of skills of the project affected population, households that are losing all of their land to the Project will be vulnerable. They may not be able to replace the land that was expropriated with nearby land for cultivation or invest in livestock.
The main outcomes are that over 40 years, the power plant would cause the loss of about 23,000 life-years because of preliminary deaths, half a million lost working days, half a million asthma attacks, almost three million days of respiratory illness and an economic damage of EUR three billion, discounted at 1%.
Overview of impacts per year of operation
Years of life lost: 564 Lost working days 11,924 Days of respiratory illness: 68,021 Asthma attacks, need for medication: 11,270 CO2 emissions: Metric tonnes 2.7 Economic damage: EUR 86.85 million
Overview of health impacts over 40 years of operation
Years of life lost: 22,560 Lost working days: 476,960 Days of respiratory illness: 2,720,840 Asthma attacks, need for medication: 450,800
Jan 20, 2016, EON Is in Talks to Sell Its Stake in Turkey’s Enerjisa
EON is planning to sell its stake in Turkey's biggest energy company Enerjisa to improve its debt and equity balance. EON's partner Haci Omer Sabanci Holdings is also planning to sell a stake in Enerjisa, according to marketrealist.com.
Dec 01, 2015, Tufanbeyli Lignite Power Plant Project status December 2015
According to Enerjisa: the construction activities of the power plant have been kicked off in 2011 and as of December 2015 two units, 300 megawatt, were commissioned.
The commissioning process for the final unit is still in progress.
Estimated completion timing is projected for the first half of 2016.
Jul 27, 2012, Enerjisa secures EUR750 million in loans
According to The Hurriyet Daily news: Sabancı Holding's Enerjisa has obtained a loan of EUR750 million to
finance the construction of the Tufanbeyli Thermal Power Plant in the
southern province of Adana. Creditors backing the loan include:
Société Générale, UniCredit Bank Austria, HSBC, Raiffeisen,
Tokyo-Mitsubishi UFJ, BNP Paribas, Fortis, Akbank, Deutsche Bank,
Natixis and Erste Group, according to a company statement. Most of the
finance package was insured by K-Sure, a South Korean insurance firm.
May 17, 2011, ITOCHU is awarded for Coal Fired Power Plant in Tufanbeyli
ITOCHU Corporation, in cooperation with the
Korean engineering company, SK Engineering & Construction Co. part of the South Korean conglomerate SK Group, has
received around YEN80 billion EPC (engineering, procurement and
construction) contract from the Turkish power generating company,
Enerjisa Enerji Uretim A.S., for a coal fired power plant in Tufanbeyli.
project finance: 608 million euros (27/07/2012) K-Sure is providing 95% coverage of the 608 million euros tranche source: www.pfie.com
On July 27, 2012, it was reported that a loan that backed the Tufanbeyli project reached financial close. Debt equity split of the project was 80/20.
The deal follows the structure of previous Enerjisa deals, however, unlike in previous deals, the International Finance Corporation (IFC) or European Bank for Reconstruction and Development (EBRD) are not participating due to the lignite-basis of the power plant. Instead the project's Japanese contractor Itochu Corporation along with South Korean engineering company SK Engineering & Construction brought in backing from South Korean export credit agency (ECA) K-Sure for the larger tranche of the deal.
Total project costs are EUR1.1 billion, split between EUR750 million in 11-year debt and EUR350 million of equity. K-Sure is providing 95% political and commercial risk insurance for a EUR608 million bank facility, while banks are also lending EUR142 million in uncovered debt. The lenders are Akbank, BNP Paribas, BTMU, Deutsche Bank, Erste Bank, Fortis (now BNP Paribas Fortis), HSBC, Natixis, Raiffeisen Bank, Societe Generale and UniCredit.
The following companies are involved in Tufanbeyli coal power plant:
E.ON is a German electricity company headquartered in Düsseldorf and is one of the big global players in energy production. E.ON operates along the entire value chain of power and gas. In addition to its activities in Europe and Russia, the company operates an electric and gas power business and renewable-source generating assets in North America. With just under EUR87 billion in sales and about 88,000 employees around the world, it's one of the world's largest investor-owned power and gas companies. E.ON has taken over Austrian firm Verbund's 50 percent stake in Turkish energy firm Enerjisa under an agreement signed on Dec. 3, 2012.
Nearly the whole deal, worth over USD one billion, was based on an asset swap, with E.ON transferring to Verbund some 30 hydro-electric power plants in Germany and Austria.
Enerjisa, the company behind this project, is a jointly run subsidiary of the prominent Turkish conglomerate Sabanci Holding, and the major German power company E.ON.
Itochu Corporation, until 1992 "C. Itoh" in English, is a Japanese general trading concern based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo. It has a common origin with Marubeni Corporation. Itochu is a Fortune 500 company. Itochu Corporation is the contractor of this project.
Sabanci Holding is the parent company of the Sabanci Group, Turkey’s leading industrial and financial conglomerate. Sabanci Group companies are market leaders in their respective sectors that include financial services, energy, cement, retail, tire, tire reinforcement materials and automotive. Listed on the Istanbul Stock Exchange (ISE), Sabanci Holding has controlling interests in 11 companies also listed on the ISE. Sabanci Holding is one of the two companies jointly running Enerjisa, the company behind this project.
SK Engineering & Construction
- energy plants - coal
SK E&C provides civil, transportation, and telecommunication infrastructure as well as building solutions since its foundation in 1977. After SK Group’s acquisition of the Ulsan refinery and petrochemical complex in 1980, it also began to grow process and power plant EPC capabilities to support rapid expansion of the Ulsan Complex. Based on the successful project execution experience in Korea, SK E&C started expanding global presence in the 90’s and accelerated its global growth exponentially in the past decade. SK Engineering & Construction is the South Korean engineering company involved in this project.