Venezuela has landed its first U.S. long term buyer for Orimulsion.
Orimulsion is a liquid fuel made up of 70% bitumen and 30% water. It's used as a fuel for electric utility and industrial power generation.
The U.S. buyer is Florida Power & Light Co. (FPL), which signed contracts with Bitor America Corp. (BAC), Boca Raton, Fla. BAC is a unit of Bitumenes Orinoco SA (Bitor), part of Venezuela's state oil company Petroleos de Venezuela (Pdvsa).
The contracts cover fuel purchases as well as related environmental control equipment.
FPL agreed to buy about 4 million metric tons/year of orimulsion for 20 years, subject to approvals. Bitor said FPL expects to achieve substantial fuel cost savings under its contract, thought to be one of the largest U.S. utility fuel agreements signed in recent years.
USE, CONDITIONS
FPL plans to burn the Orimulsion at its 1,580 mw Manatee power plant in Southwest Florida. BAC will deliver the fuel in double hull vessels directly to the Manatee plant's fuel receipt terminal, thus reducing the risk of a spill.
The environmental control equipment will mainly consist of an electrostatic precipitator and a wet limestone scrubbing system. The system will be designed and built by Pure Air, a combine of Air Products & Chemicals Inc., Allentown, Pa., and a unit of Mitsubishi Heavy Industries of Japan.
A company associated with Pure Air will own the equipment, whose installation, operation, and maintenance is covered by one of the FPL contracts.
The contracts hinge on FPL receipt of permits to convert the Manatee plant to Orimulsion and approval by the Florida Public Service Commission of the company's financial plan for the conversion. With those clearances, Orimulsion start-up would occur early in 1998.
Orimulsion is used under contract in several utility boilers in Japan and the U,K. Other contracts are in place with Canada's New Brunswick Power and Japan's Kansai Electric Power Co.
Bitor said Venezuela's reserves of bitumen, Orimulsion's base material, exceed world reserves of conventional crude oil.
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