ADB is helping the People's Republic of China to roll out a coal-fired power plant that uses the most efficient and least-polluting technology. The project will build the country’s first integrated gasification combined cycle power plant in Tianjin City. Upon completion, the 250-megawatt power plant can generate up to 1,470 gigawatt-hours of electricity annually.
Project Name | Tianjin Integrated Gasification Combined Cycle Power Plant Project | ||||||||||||
Project Number | 42117-013 | ||||||||||||
Country | China, People's Republic of |
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Project Status | Closed | ||||||||||||
Project Type / Modality of Assistance | Grant Loan |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | |||||||||||||
Sector / Subsector | Energy / Conventional energy generation - Energy efficiency and conservation |
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Gender Equity and Mainstreaming | No gender elements | ||||||||||||
Description | The Tianjin Integrated Gasification Combined Cycle Power Plant Project involves constructing and operating a coal-fired integrated gasification combined cycle (IGCC) power plant with 250 megawatt capacity in Tianjin Harbor Industrial Park in the Binhai New Area of Tianjin city. This will be the first IGCC clean coal project in the PRC, using the most efficient and least-polluting technology currently available commercially. It will also be the first IGCC power plant in the developing Asia. On completion, the plant will generate 1,470 gigawatt-hours of electricity annually, which will be sold to the Northern China Grid Company Ltd. using a 220 kilovolt interconnecting transmission line to an existing substation in the industrial park. The Project is consistent with the priority of the Government of the PRC to implement a coal-fired power plant with near-zero emissions by 2015 under its flagship clean coal program GreenGen announced in 2005. The Project is a cornerstone of the critical first phase of the GreenGen program. In the second phase, a scaled-up IGCC plant fitted with pilot-scale carbon capture and storage (CCS) is expected by 2013, and the third phase is expected to provide a coal-fired power plant with near-zero emissions by 2015. CCS is included in all climate change-mitigation strategies proposed by the United Nation's Intergovernmental Panel on Climate Change and the International Energy Agency. Various international studies have found IGCC power plants with CCS to be the least-cost option to cut carbon dioxide (CO2) emissions from coal-fired power plants by up to 90%. By successfully demonstrating the advantages of IGCC technology, the Project will reinforce confidence in the viability of this technology and enable the timely implementation of the ensuing phases of the GreenGen program. Relevant approvals for the construction are in place. Project completion is expected by 30 June 2012. |
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Project Rationale and Linkage to Country/Regional Strategy | The PRC is the world's largest coal producer and consumer. Coal production has increased from 0.98 billion tons (t) in 2000 to 2.74 billion t in 2008, or more than 48% of global production. In the PRC, electricity is produced predominantly from coal, which generated 81% of the total electricity in 2008. Electricity generation is the largest single consumer of coal. It consumed 1.34 billion t (49%) of the coal produced in 2008, with serious environmental problems and poor air quality caused by related emissions 50% of the nation's sulfur dioxide (SO2) emissions, 36% of its nitrogen oxide (NOX) emissions, and 39% of its CO2 emissions. Acid rain caused primarily by SO2 and NOx falls on one-third of the country and 45% of its farmland. The rapid increase in coal consumption has triggered a surge in emissions of CO2 a major greenhouse gas (GHG) and cause of global climate change. The Government is actively improving energy efficiency and shifting to non-carbon and other cleaner energy sources to improve the country's environment and help mitigate global climate change. The Renewable Energy Law, enacted in 2006, brought unprecedented growth in wind, solar, and biomass power generation. Carbon-free nuclear power is expected to grow many folds. The PRC already has the largest hydropower capacity in the world, which is expected to grow substantially. Despite efforts to change the energy mix, coal is expected to remain dominant in electricity production in the near future. To improve the efficiency of and reduce emissions from coal-fired power plants, the PRC is (i) rapidly closing small, inefficient plants, as indicated by the closing of 54 gigawatts of such capacity in the past 3 years alone; (ii) constructing new supercritical and ultra-supercritical (USC) plants with advanced technology that offer efficiency comparable to international standards; and (iii) accelerating the application of flue gas de-sulfurization. The development of coal-fired IGCC power plants has been slow, though they can offer 4% 5% higher efficiency than USC plants. So far, no industrial-scale IGCC plant is operating in the PRC. Higher capital and, operation and maintenance (O&M) costs (affecting electricity tariffs), and technology risks are cited as key barriers. IGCC technology is, however, gaining momentum in part because of the opportunity of combining it with CCS to cut emissions drastically. The Project will demonstrate a key enabling technology with potential for large GHG emission reductions from coal usage in the largest coal-consuming country in the world. ADB project support will provide additional technical due diligence and help mitigate associated risks, strengthen compliance with safeguard policies, and thereby establish appropriate benchmarks and standards for future IGCC projects. The successful implementation of the Project will lead to scaled-up IGCC power plants and trigger the next phases of the GreeGen program, with the potential for very large reductions in GHG emissions from coal-fired power plants in PRC. |
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Impact | Reduced GHG emissions from coal-based power plants. |
Project Outcome | |
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Description of Outcome | Multiple IGCC plants deployed |
Progress Toward Outcome | The Tianjin IGCC power plant has successfully passed the critical continuous operation test at full load and will continue for some more time on trial operation which should enable plant's commercial operation by the end of 2014. As requested by the Borrower, ADB cancelled loan savings in the amount of $23.16 million effective 26 November 2013 and subsequently approved the updating of baseline projections. In addition, the loan closing date was extended up to 31 October 2014 to accommodate a CCUS pilot project which will enhance the attainment of project's outcome. Total contract awards to date under Loan 2616 is $104.2 million while disbursed amount is $105.7 million. The undisbursed loan balance of $6.1 million was cancelled, following advise from PIA that no further withdrawals will be requested. The loan was financially closed on 27 Feb 2015. Contract award for Grant 0196 is $4.8 million representing the contract with the coal gasifier and gas turbines supplier for the long-term maintenance of $4.5 million, and individual consultants' contracts of $0.3 million. The grant closing date was extended to 30 June 2016 to allow completion of all activities. |
Implementation Progress | |
Description of Project Outputs | 250 MW IGCC demonstration plant constructed at Tianjin; Adequate plant O&M capacity created Capacity developed for obtaining carbon offset revenues from IGCC plants |
Status of Implementation Progress (Outputs, Activities, and Issues) | The long-term maintenance contract is under the grant. The draft PDD was prepared in cooperation with Greengen staff. Due to the uncertainty of post 2012 CDM, Greengen decided not to further pursue CDM possibility. Through 2013, the plant had to go through some major repairs, including the replacement of (i) compressor at the air separation unit, and (ii) the nozzle at the combustion unit. In addition, further trial operations had to be completed. The plant has operated reliably since the beginning of 2014. |
Geographical Location | Tianjin |
Safeguard Categories | |
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Environment | A |
Involuntary Resettlement | C |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | Category A. A summary of environmental impact assessment was circulated to the Board and posted on the Asian Development Bank (ADB) website on 14 April 2008. Envrionment Monitoring Reports were disclosed on ADB's website in May 2012, in November 2012, January 2014 and February 2015. |
Involuntary Resettlement | The Project has acquired 20 hectares of newly reclaimed land in an existing industrial park and therefore does not entail any resettlement. |
Indigenous Peoples | No indigenous people were affected by the project. |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | |
During Project Implementation | The stakeholder participation and consultation will be mainstreamed in the Project's implementation and will be paid particular attention during the loan review missions. A knowledge product will be prepared identifying issues in the IGCC financing, implementation and operation for wider dissemination in PRC and other relevant developing member countries. |
Business Opportunities | |
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Consulting Services | Consultants will be recruited in line with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Advance contracting and retroactive financing will be considered for consulting services. |
Procurement | The Project's procurement willb e carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). |
Responsible ADB Officer | Shigeru Yamamura |
Responsible ADB Department | East Asia Department |
Responsible ADB Division | Energy Division, EARD |
Executing Agencies |
China Huaneng Group Wang Xiaoyan [email protected] Tel: 86-10-63228726 / Fax No. 86-10-63228745 |
Timetable | |
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Concept Clearance | 22 Aug 2008 |
Fact Finding | 06 May 2009 to 16 May 2009 |
MRM | 23 Sep 2009 |
Approval | 08 Feb 2010 |
Last Review Mission | - |
PDS Creation Date | 17 Sep 2008 |
Last PDS Update | 30 Mar 2017 |
Grant 0196-PRC
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
08 Feb 2010 | 28 May 2010 | 16 Aug 2010 | 31 Dec 2015 | 30 Jun 2016 | 19 Jul 2017 |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 569.18 | Cumulative Contract Awards | |||
ADB | 10.00 | 08 Feb 2010 | 4.87 | 0.00 | 97% |
Counterpart | 559.18 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 08 Feb 2010 | 4.87 | 0.00 | 97% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | - |
Loan 2616-PRC
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
08 Feb 2010 | 28 May 2010 | 25 Aug 2010 | 31 Dec 2012 | 31 Oct 2014 | 27 Feb 2015 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 223.68 | Cumulative Contract Awards | |||
ADB | 223.68 | 08 Feb 2010 | 105.73 | 0.00 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 08 Feb 2010 | 105.73 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | - |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Title | Document Type | Document Date |
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Tianjin Integrated Gasification Combined Cycle Power Plant Project: Environmental Monitoring Report (November 2013-October 2014) | Environmental Monitoring Reports | Feb 2015 |
Tianjin Integrated Gasification Combined Cycle Power Plant Project: Environmental Monitoring Report (November 2012 - October 2013) | Environmental Monitoring Reports | Jan 2014 |
Tianjin Integrated Gasification Combined Cycle Power Plant Project: Environmental Monitoring Report (March-October 2012) | Environmental Monitoring Reports | Nov 2012 |
Tianjin Integrated Gasification Combined Cycle Power Plant Project | Environmental Monitoring Reports | May 2012 |
Tianjin Integrated Gasification Combined Cycle Power Plant Project | Environmental Assessment and Measures | Apr 2008 |
Evaluation Documents See also: Independent Evaluation
Title | Document Type | Document Date |
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People’s Republic of China: Tianjin Integrated Gasification Combined Cycle Power Plant Project | Validations of Project Completion Reports | Dec 2018 |
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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PRC’s Tianjin Breathing Easier with Cleaner Coal Power
A power plant in the city of Tianjin is using efficient coal technology to help millions in the People's Republic of China on the path to cleaner air and more reliable power supply for their homes and businesses.
Tenders
No tenders for this project were found.
Contracts Awarded
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Procurement Plan
Title | Document Type | Document Date |
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Tianjin Integrated Gasification Combined Cycle Power Plant Project | Procurement Plans | Apr 2014 |