BORDEAUX, France, March 10, 2014 /PRNewswire/ --
Over the last two weeks, the CHO Morcenx plant has reached
unprecedented performance levels, but an incident unfortunately
forces us to further delay the provisional take over procedure.
Between March 6th and
8th, the plant has gasified 305 tons of CHO Fuel (waste
and biomass), produced good quality gas (approx. 20% CO and 10%
H2), and delivered to the grid 113 MWh of renewable energy. On
March 9th, we were however
confronted to a CHO fuel slagging phenomenon in the gasifier, which
led us to stop the process. A visual inspection on March 10th evidenced the need for a
complete cleaning before a restart, preventing us from proceeding
with the provisional take over tests on March 11th, as initially
scheduled.
Such a slagging phenomenon is not unusual in the gasification
technology. It results from a sudden rise in temperature of the
waste bed, itself resulting from uncontrolled chemical reactions,
which can have many sources (nature and flow of waste input,
temperature and flow of air input, waste bed height, agitator
rotational speed, etc). CHO Power and CHOPEX teams were well aware
of this phenomenon, but the incident of March 9th clearly shows that setting
the facility requires fine adjustments that we do not yet master in
totality.
Fortunately, these are only chemical adjustments. The facility's
capacity to reach planned performance levels is not at all
challenged. On the contrary, last week's tests have reinforced our
convictions in this respect. Slag samples were given for analysis
to independent laboratories, their composition should help identify
the exact causes of the problem.
The next test campaign will start at the end of this week, as
soon as the facility has been cleaned and reheated. This will be
undertaken in the presence of the supplier of the gasifier and
external experts, and will be executed even more prudently than the
previous campaign, in order to adjust each operating parameter in
an optimal and risk-free manner.
At this stage, it is impossible for us to establish a fixed date
for the provisional take over procedure, optimisation of operating
parameters can take three days or three weeks. The company will
disclose the new procedure agenda as soon as possible.
The delay of the provisional take-over procedure will have
significant impact on the Group cash flows, since it will delay
corresponding contractual payments, guarantee releases by the
client, and the raising of external funds destined to cover the
company's cash requirements until final acceptance date. The
management, Board of Directors and the client have started
discussing that issue, its magnitude will also depend upon the
planning of the provisional take-over procedure.
About Europlasma
Europlasma is a French Group operating in the clean technologies
and renewable energy production industries. Founded in 1992 to
apply its proprietary plasma torch technology to hazardous waste
destruction, it is now built on the following three business
units:
- Torches & Processes - Europlasma is a world-wide
supplier of plasma heating systems and related applications
- Hazardous Waste - Inertam is the global specialist in
the destruction and recycling of asbestos and hazardous waste
- Renewable Energies - CHO Power is a producer of
electricity from waste and biomass gasification.
http://www.europlasma.com [Alternext - NYSE Euronext Paris
- Mnemo : ALEUP - Isin : FR0000044810]
Press and investor contacts
Jean-Eric PETIT, Chief Executive Officer / Estelle
MOTHAY, Chief Financial Officer
Anne BORDERES, Press & Shareholders contact / Tel:
+33-556-497-000 / contactbourse@europlasma.com