The official inauguration of the new heating plant Toplana Zenica marks the successful deployment of the solution for district heating decarbonization and reduction of air pollution. The cogeneration plant will utilize waste gases from the ArcelorMittal Zenica steel plant in Bosnia and Herzegovina to produce electricity and heat, replacing the old coal-fired facility.
The investment is estimated at EUR 53 million, of which EUR 41 million is a loan from the European Bank for Reconstruction and Development (EBRD), and the rest are funds secured by ArcelorMittal Zenica, the City of Zenica and Finnish companies KPA Union and FinnFund.
The owners of the new heating plant, which is the basis of the district heating system in Zenica, are ArcelorMittal with 50 percent, the City of Zenica with 20 percent and the Finnish companies with 15 percent each. ArcelorMittal Group has provided a loan guarantee. Of note, the construction of the facility started two years ago.
The heating plant will use coke oven and blast furnace gas from the steel plant as fuel
On average, more than 150,000 tons of coal annually was needed to operate old boilers, which was completely eliminated by installing new gas boilers, ArcelorMittal said, adding that the heating plant now has three new boilers using coke oven and blast furnace gas.
The gases are byproducts of steel manufacturing and have so far been burned or used very inefficiently.
The cogeneration plant will also produce steam and air for the steel plant
The cogeneration plant will have a capacity of 14.45 MW for electricity and 112.5 MW for heat.
According to ArcelorMittal, the new plant will reduce emissions of sulfur oxides from 2,000 milligrams per cubic meter (mg/Nm3) to less than 200, dust was lowered from about 100 mg/Nm3 to below 10 while nitrogen oxide emissions fell from about 300 mg/Nm3 to less than 100.
The new cogeneration plant will produce both steam and air, which are necessary for the operation of the ArcelorMittal Zenica steel plant.
The facility is the most advanced energy project in BiH
Nikhil Mehta, director of ArcelorMittal Zenica, said the project took five years to complete. The heating facility is a long-term solution for the stable supply of heat to the consumers in Zenica, he added.
Director of Toplana Zenica Emir Krgo said the new facility can also operate on natural gas and that it is the most advanced energy project in BiH.
The heating plant meets all environmental standards of the European Union and all legal regulations of BiH, he added.