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Interview with Dr. Shadia Elshishini, Consultant to the Ministry of Environment, Government of Egypt

Dr Shadia talks to Coaltrans about government plans to expand coal fired generation in Egypt, which countries are likely to dominate coal supplies for the Egyptian market, and the future of coal in Egypt.

Coaltrans Conferences (CC): What are the main regulatory changes regarding coal-fired power generation?

Shadia Elshishini (SE): Coal has been introduced to Egypt by Prime Minister’s Decrees that have allowed the use of Coal as fuel in only two industries: Cement and Power Plants as well as its use in any other industry where it is required as input to the manufacturing process (Iron and steel, Coke, Electrode for Aluminium production, Tires, Rock wool,  ..). The main regulatory changes are:

• The type of coal to be used as fuel is restricted to Anthracite and Bituminous Coal for their higher calorific values, thus reducing the volumes of required coal. 
• For power plants of more than 600 MW, stack emission limit values have been reduced: Particulates from 100 to 50 mg/Nm3, Carbon monoxide from 300 to 250, Sulphur oxides from 1300 to 850 (450 in sensitive areas), Lead and Mercury remain unchanged at 2 and 1 mg/Nm3, respectively.
• Traders are not allowed to store coal in their names within Egypt. Import, handling and storage are the responsibility of the end-users. Permission to import coal is granted to the end-users.
• Locations for Power Plants are approved by the ministry of environment and are located either on the Red Sea or the Mediterranean each plant with its own jetty. No locations are allowed in the Nile Valley or inland in such a way to prevent any coal transport and handling within Egypt. 
• The amount of coal allowed to power plants is estimated on the basis of an efficiency of no less than 40% so that the consumption rate of coal does not exceed 340 to 380 g/kWh through the use of super critical boilers. 
• Ship unloading and transportation to site has to be performed by covered equipment and conveyors.
• Coal mills should be enclosed, equipped with bag filters and ATEX approved.
• Coal powder should be handled pneumatically and stored in silos equipped with CO monitors
• Power plants are required to minimize landfilled fly ash through sales to local cement plants or export to neighbouring countries.

What are current government plans to expand coal fired generation in Egypt?

SE: It is clearly stated in the Sustainable Development Strategy – Egypt 2030 that the targeted energy mix by 2030 is Oil and Gas: 27%; Hydroelectricity: 5%; Solar: 16%; Wind: 14%; Coal: 29%; Nuclear: 9%. This is based on a clear objective to reach energy security by diversifying energy supply to reliably meet the energy demands of a growing economy.

According to the Minister of Electricity and Renewable Energy Dr Mohammed Shaker El Markabi (March 2015) it is planned to construct 54 GW of new capacity by 2022 whereby coal will consist of 15% of the energy mix for Electricity generation by 2022 as shown below.

What’s your estimate of future coal procurement volumes by Egyptian end-users in the next 5 years?

SE: Two power plants are presently in the stage of preparation of necessary studies for final approval.

Oyoun Moussa Plant. In September 2016, according to Mohamed Shaker, minister of electricity and renewable energy the technical and financial negotiations for Oyoun Moussa power plant (2640 MW) are completed and the project is in the final stages of final agreement with Al-Nowais. The plant will be completed in 2020. Location is in Suez Gulf as shown in following map. Expected volume of coal about 16 million tons per year at full capacity.

Hamraween Plant: On 21 January 2016, China's Dongfang Electric Corporation entered into an Engineering Procurement and Construction (EPC) contract for the ultra-supercritical plant with Egyptian Electricity Holding Company. The total installed capacity of the project would be 3,960MW, developed in two phases of 3×660MW each. Expected volume of coal for the first phase is about 12 million tons per year.

Regarding Cement plants the expected volume of coal for the 26 plants currently operating is about 8 million tons per year. However, with the new cement lines in construction and the need for cement to meet the demand for the new construction projects (the New Capital, the Golden triangle, ...) an additional 2 million tons/year will be required. 

CC: Which countries are likely to dominate coal supplies for the Egyptian market?

SE: For Oyoun Moussa and Hamraween Power Plants, coal would be sourced from South Africa, Indonesia and Australia, because of easier access to the Red Sea locations.

Cement plants are located all over Egypt as shown on map below.
Plants located in Delta, Alexandria, Beni Soueif and Menya will receive their coal at Alexandria and Dekhela ports from suppliers from US or Europe.

Dekhela and Sokhna Ports will be serving Suez and Kattamia Plants from supplier from South Africa, Australia, Indonesia.

CC: What is the future of coal in Egypt?

SE: According to the Sustainable Development Strategy – Egypt 2030, coal will form 15% of the energy required for electricity generation. As for Cement plants, it will form about 80% of the thermal energy requirement. Presently, Cement plants using Natural Gas or Fuel Oil cannot compete with those using coal. Even when new NG resources are discovered, it will be directed to more cost effective uses. 

You can hear more from Dr Shadia at the 3rd Coaltrans Middle East where she will be discussing Coal in Egypt's fuel mix - Environmental issues and regulations.

This content is provided by Coaltrans Conferences for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.

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