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Shivee Ovoo power station

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This article is part of the CoalSwarm coverage of Mongolia and coal
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The Shivee-Ovoo power station is a proposed coal-fired power station at the Shivee Ovoo coal mine in Mongolia.

The project has been proposed since 2008. As of 2018 it is proposed to be 5,280 MW. A feasibility study sponsored by state-run investor Erdenes Mongol LLC is being carried out by the State Grid Corp. of China and is expected to be completed in 2018.[1] Negotiations are ongoing with UK-based IM Power to build the power station.[2]

Mongolia's 2018 communication to the UN Framework Convention on Climate Change lays out plans for only 276 MW of coal-fired capacity from Shivee Ovoo, commissioned in 2026.[3]

Location

The Shivee Ovoo power station is proposed to be built in the Shivee Ovoo coal deposit area in Shivee-Gobi and Sumber soum of Gobi-Sumber province. The project location lies 260 km to the southeast of Ulaanbaatar, the capital city of Mongolia, 20 km to the southeast of Choir City, the provincial capital, and 5 km to the northeast of Shivee-Gobi soum.

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Background

On October 26, 2015, Erdenes Shivee Energy was established, with 50 percent owned by state-owned Erdenes Mongol and the other 50 percent owned by Aq Sora, a private entity. In a report, the company states the "goal of Shivee Energy Complex Project of Energy Export is to build a large scale coal fired power plant in Mongolia and export the produced energy into China via transmission lines. The complex project consists of 3 main components. First, a coal mine with the capacity to extract 20 million tons of coal per year. Second, a power plant with an installed capacity of 5,280 MW. Third, renewable power plants with an installed capacity of 15 percent of the installed capacity of coal fired power plants. Lastly, transmission line with the capability to transmit 4,600 MW ±660kV UHV."[4]

In November 2015 the Mongolia Ministry of Energy and China National Electric Equipment Corporation agreed to cooperative execution on the feasibility study for the Shivee Ovoo plant.[5] Shandong Electric Power Engineering is carrying out the Feasibility Study for the Power Plant and Transmission Line.[4] On April 13, 2016, a consultative meeting was held on the project’s preliminary feasibility studies and Mongolia-China energy cooperation.[6] According to the Shandong International Contractors Association, feasibility studies are ongoing and funding is being sought. Initially, the project is planned to be implemented on Build Own Operate and Transfer (BOOT) basis, with an initial capacity of 270MW, and the possibility for expansion.[7][8]

In June 2017 it was reported that a feasibility study on Mongolia’s proposed 5,280-megawatt Shivee project was being carried out by State Grid Corp. of China, and that talks with potential buyers would begin after the study's completion, planned for end-2017. It is stated the project may "export power as far as Japan."[1][9]

Negotiations with IM Power

In 2013 a memorandum of understanding on the construction of the Shivee-Ovoo coal mine-based power plant was agreed to by Mongolian Erdenes MGL and UK's IM Power companies. On its website (undated), IM Power states it is currently working in Mongolia on the construction of a 750 MW thermal power plant at the state-owned Shivee-Ovoo coal mine. However, as of 2017 the project is no longer on the IM website,[10] although a February 2017 IM Power brochure states that "IM Power Mongolia LLC together with its partners (Project Group) has been working since March 2012 on the development of the power project for the construction of 3 x 250 MW power plant at Shivee-Ovoo coal mine."[11]

On May 18, 2017, Prime Minister J. Erdenebat received the Managing Director of IM Power and the UK Ambassador to Mongolia, who presented their request to build a power plant based on the Shivee Ovoo coal deposit at an estimated cost of US$1.2 billion.[12]

In September 2017 the CEO of Erdenes Mongol stated it was working with IM Power to create a coal reserve for the power station.[2]

History

In a briefing on the project, a Mongolian government official explained that the project had been mooted after the November 2005 signing of a Memorandum of Understanding between the Ministry of Fuel and Energy of Mongolia and Development and Renovation Committee of China on cooperation in the fuel and energy sector. Subsequently a pre-feasibility study had been undertaken by the State Grid Corporation of China on the establishment of the mine-mouth power station and an electricity transmission line to China. Following this Mongolian and Chinese government officials have been negotiating the terms of agreement for the project.[13]

In 2008, the power station was proposed as a 3,600 MW power station with 3,000MW destined for the Chinese market.[14][15]

In a 2008 presentation a government representative stated that "construction work will start in 2008, First block will operate in 2010, Project will be finished in 2015." However, the project has not progressed. In a 2010 presentation the Mongolian government identified the development of the $US4 billion Shivee Ovoo power station as one of its "top priorities in the midterm".[16]

In 2009 the Mongolian Prime Minister Sanjaagiin Bayar visited the minesite to discuss the establishment of the Shivee Ovoo power station. In an interview Bayar stated that "we exchanged our points of views with Development and Innovation Committee of People’s Republic of China regarding building the complex next to Shivee Ovoo coal mine. We agreed upon establishing it in late 2009. This is to establish the biggest ever power station with capacity of 20 thousand megawatt. It will supply China with energy. It is good for China and Mongolia. Also this power station is to provide Mongolia with electricity. This station would supply China, a stable and big market with high demand of electricity. It is not only the issue of Shivee Ovoo, we need to build power station to supply Xinjiang – Uyghur region of China, where there is big demand of energy. We have huge reserve next to this region. These projects will surely help Mongolia to strengthen its financial base and budget revenue. Also eastern part of Mongolia, namely, Dornod aimag has mining deposits with big reserve."[17]

In 2010 the Mongolian government proposed that the power station would have approximately 4,000MW slated for export to China and 300MW to meet increasing domestic power demand, especially from the rapidly expanding mining sector.[18]

In October 2015 it was reported that "Chinese professionals" suggested building a complex with 34 million tonnes per annum of coal production capacity and a 9,240 MWT coal-fired power plant.[19] Note that MWT, or Megawatt Thermal, is a measure of the amount of heat input into a power plant. For a plant running at 42 percent efficiency, a 9,240 MWT coal plant would equate to 3,881 MW of electric capacity.

Project specifications for a 4000 MW coal plant

A 4,000 MW power station would require approximately 20 million tonnes of coal per year, which would be supplied by a conveyor from the adjoining Shivee-Ovoo mine.[20] It has also been estimated that the power station would require "water access and supply facilities of 16 million cubic meter per year" and take 7 years to build. It would also necessitate the construction of a 1400 kilometre long 630 kV DC transmission line for 4000 MW from Shivee Ovoo to the North China Power Grid as well as a new 220 kV transmission line to carry 300MW to the Mongolian Central energy system.[18]

Project Details

  • Sponsor: Erdenes Shivee Energy, LLC
  • Parent company: Erdenes Mongol, Aq Sora
  • Location: Shivee Ovoo mine, Mongolia
  • Coordinates: 46.223986, 108.530746 (approximate)
  • Status: Pre-permit development
  • Gross Capacity: 270 MW initially with plans to expand up to 5,280 MW
  • Type:
  • Projected in service:
  • Coal Type:
  • Coal Source: Shivee Ovoo mine
  • Source of financing:

Articles and resources

References

  1. 1.0 1.1 Michael Kohn and Stephen Stapczynski, "Tokyo Nights May Soon Be Lit Up by a Country 1,700 Miles Away," Bloomberg, June 7, 2017
  2. 2.0 2.1 "Erdenes Mongol CEO ts. tumentsogt speaks," PressReader, Sep 1, 2017
  3. "Mongolia Third National Communication," UNFCCC, Oct 14, 2018
  4. 4.0 4.1 "Shivee Energy: Integrated Energy Complex," Erdenes Shivee, 2016
  5. "Mongolia and China sign cooperation agreements," Info Mongolia, Nov 11, 2015
  6. "Feasibility studies of huge renewable energy project presented," MAD, Apr 12, 2016
  7. "Mongolia Shivee-Ovoo coal mine power plant construction," Shandong International Contractors Association, 2016-12-07
  8. "Public Private Partnership Project Proposals," Government of Mongolia, Apr 29, 2014 (PDF)
  9. "Shivee Energy: An Integrated Energy Project," www.unescap.org, Aug 24, 2017
  10. "Mongolia," IM Power, accessed Feb 2016 and May 2017
  11. "From Natural Resources to Energy," IM Power plc, Feb 24, 2017
  12. "IM Power proposes to build power plant near major coal mine in Gobi," Montsame, May 19, 2017
  13. Sh. Batrenchin, Senior Expert, Energy Policy Department, Ministry of Mineral Resources and Energy of Mongolia, "Energy Projects in Mongolia", Ministry of Mineral Resources and Energy of Mongolia, July 2010, page 1. (Pdf)
  14. S. Tserenpurev, State Secretary of the Ministry of Fuel and Energy, "Energy Development in the South Gobi Region", World Bank, May 2008, page 4.
  15. "Another possible delay for CHP5 Mongolian power plant," M.A.D. Investment Solutions, July 17, 2013
  16. Government of Mongolia, "Development Policies of Mongolia: Incorporating Mining as a Growth Engine", National Development and Innovation Commission, 2010, page 10.
  17. "Prime Minister S.Bayar: The moment with no right to lose time (Part I)", BusinessMongolia.com, April 23, 2009.
  18. 18.0 18.1 Sh. Batrenchin, Senior Expert, Energy Policy Department, Ministry of Mineral Resources and Energy of Mongolia, "Energy Projects in Mongolia", Ministry of Mineral Resources and Energy of Mongolia, July 2010, page 2. (Pdf)
  19. "Shivee Energy Complex Project to commence," Montsame, Oct 27, 2015
  20. Erdennes MGL, "Erdennes MGL" LLC, United Nations Economic and Social Commission for Asia and the Pacific, Ulaanbaatar 2009, page 6.

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