Promotion of solar power plants

Important milestones were reached throughout 2013 in the promotion of plants, serving to secure the company’s position. Among the year’s achievements it is fitting to highlight the commencement of operation of Solana, the world’s largest plant using parabolic trough technology with 280 MW, which is also equipped with a molten salt thermal energy storage system, one if its kind in the United States, to permit production after sunset or during cloudy spells. This year, Abengoa added Liberty Interactive Corporation as an investor in the limited company that manages the plant, with an investment of $300 M. Abengoa is still in charge of management, operation and maintenance. Solana has taken an important step to consolidate its position and gain the trust of the US market in Abengoa, in addition to its technological progress in the manageability of solar power.

Abengoa also completed two major projects this year, with the financing and establishment of two new parabolic trough plants in Spain with an installed capacity of 50 MW each. These two new plants, together with another two with the same characteristics already up and running, make the Extremadura solar platform Europe’s biggest solar facility. Also, operations have begun at Shams-1, the first parabolic trough plant in the Middle East.

In addition, Abengoa has signed a long-term power supply agreement with Israel for a 110 MW parabolic trough plant together with a local partner, namely Shikun & Binui, a global company in the infrastructure and construction sector. The company has also increased its project portfolio in South Africa where it was awarded the contract for a new 100-MW parabolic trough plant with five hours storage, namely Xina Solar One.

The completion of these projects and the endorsement of other previously mentioned innovative projects have made this an unparalleled year for the positioning of Abengoa in new markets, thus securing the company’s continued medium and long-term growth.

Operation of plants

The operation of plants that Abengoa developed in previous years is, without doubt, the driving force behind the company’s exponential growth this year. The operation of 23 plants using both solar thermal and photovoltaic technologies with a total installed capacity of 1.2 GW has permitted Abengoa to gain valuable experience in plant operation and maintenance. This know-how is becoming one of our main lines of business given that Abengoa is one of the most experienced companies in the operation of plants of the entire solar power sector. It is without doubt the foundation on which all growth of the company’s solar business is built, and is a solid foundation to achieve the goals set for the coming years.

Solana

Solana began operating in 2013, gaining the status of the world’s largest parabolic trough plant with an installed capacity of 280 MW. The power generated at this plant is sold through a 30-year sale-purchase agreement signed by Abengoa with Arizona Public Service (APS), Arizona´s largest electric utility.

Located some 100 km southwest of Phoenix, Arizona, this plant has a solar field with 32,000 collectors and a six-hour molten salt thermal energy storage system, the only one of its kind in the United States. This system permits the generation and distribution of electricity during cloudy spells and after sunset, meeting the peak demand for electricity.

From an environmental perspective, Solana offers clean, contamination and greenhouse gas-free energy, equal to the energy demand of 70,000 homes, curbing annual CO₂ emissions by almost 500,000 t.

Solucar Complex

The Solucar Complex features a series of plants dedicated to commercial operation and technological innovation. The complex boasts the world’s first two commercially operated towers, three parabolic trough and two photovoltaic plants, as well as numerous research, development and innovation facilities, including two pilot tower plants, all of which were constructed and operate independently. In 2013, PS10 celebrated six years in commercial operation, and PS20 four years, surpassing the first year’s operation of the complex’s four towers combined.

The experience gained through operation and maintenance of the seven commercial plants at the Solucar Complex makes Abengoa a leader in solar plant management. Moreover, the first molten salt solar tower has achieved extremely high levels of efficiency, making this technology commercially available in situations where it is necessary to offer clean solutions with very long storage periods.

Extremadura Solar Complex

In 2013, commercial operations began at Solaben 1 and Solaben 6, two of the four independently constructed and operated 50 MW parabolic trough plants that make up the Extremadura Solar Complex. The commencement of operation of both these plants makes this facility the largest solar complex in Europe and one of the largest in the world, with a total production of clean energy meeting the supply needs of some 105,000 homes and curbing annual CO₂ emissions by approximately
126,000 t.

Abengoa has a 70 % stake in the Solaben 2 and Solaben 3 plants, while ITOCHU, a global Japanese company, controls the remaining 30 % of these two plants. Abengoa has a 100 % ownership stake in Solaben 1 and Solaben 6.
The construction and operation of the solar complex has created important socio-economic benefits for the region. Its construction required an average of 400 workers per day, and at times up to 1,000. The economic activity generated around the solar complex has also led to growth of the region’s business network, while boosting the services sector.

Ecija Solar Complex

This complex has two 50 MW parabolic trough plants. The independently constructed and operated Helioenergy 1 and Helioenergy 2 plants are jointly operated by Abengoa´s solar business and E.ON.

Castilla-La Mancha Solar Complex

The complex, located between the municipalities of Arenas de San Juan, Villarta de San Juan and Puerto Lápice in the province of Ciudad Real, has two identical 50 MW parabolic trough plants, each independently constructed and operated.

El Carpio Solar Complex

The complex has a total of 121,000 mirrors that concentrate sunlight to generate steam at temperatures of up to 400º C.

The facility consists of two independently constructed and operated parabolic trough plants. Both plants are jointly owned by Abengoa and the Japanese conglomerate JGC. Abengoa operates both plants and has a 74 % stake.

Shams-1

Shams-1, the first solar thermal plant in the Middle East, with 100 MW capacity, represents the final step to position Abengoa in a region with enormous potential in the solar power sector. This parabolic trough plant became operational in 2013, with an installed capacity equal to the energy demand of 20,000 homes. Abengoa has a 20% ownership of this plant.

Hassi R’Mel

The hybrid integrated solar combined cycle plant operated by Abengoa in Hassi R’Mel, Algeria, continues to satisfactorily meet the operational objectives. This plant has 150 MW capacity, of which 20 MW come from a field of parabolic trough collectors. It is one of the first plants of its kind to be constructed in the world, making Abengoa a pioneering company in the construction and operation of solar plants in North Africa. Abengoa shares ownership of this plant with a strategic partner, namely NEAL (New Energy Algeria).

The hybridization of solar thermal combined cycle plants is an extremely interesting solution at locations with abundant sunlight and low gas prices.

New concessions under construction

In 2014, operations are expected to get underway at the Mojave and Khi Solar One plants, in California, USA, and South Africa, respectively; both of which will form part of Abengoa’s concession-based business, being yet another example of the company’s drive toward the diversification and internationalization of its business.

In the coming years, it will continue with the expansion of its concession-based business in the international arena.

Desalination business

Desalination is the process of removing salt and other minerals from water. Desalination is one of the most rapidly growing solutions to water shortages. This growth reflects the fact that much of the growing demand for water comes from coastal regions and the sharp drop in costs of this technology over the last decade. The installed global capacity for desalination in 2012 (industrial and municipal) was 75 million m³/day, with a market value of $3,938.3 M. Growth in this market is expected to reach $15,188.4 M by 2018. In particular, the annual growth rate of capital investment in seawater desalination is expected to reach around 19.2 %. The following are predicted to become the main desalination markets in the coming years, in order of size: The United States, Saudi Arabia, the United Arab Emirates, Kuwait, China and India.

Our mission is to promote, develop and operate water treatment plants, with innovation and technological development as the drivers of growth.

Abengoa’s vision is to consolidate its position as the international market leader in desalination plants, managing proprietary assets while expanding its water treatment and reuse business, including water treatment in the industrial sector.

The desalination division divides its lines of business into:

• Concessions
• Services
• Processes and systems
• Technology

Projects by territory

Desalination plants under concession:

Algeria

• Skikda: The purpose of this desalination plant is to produce drinking water from seawater to supply the city of Skikda, a Mediterranean coastal port located 80 km west of Annaba, Algeria. It is the first project developed under the concession scheme in Algeria. The plant supplies a population of 500,000. It has a capacity of 100,000 m³/day and has been operating since 2009.

• Honaine: The purpose of this desalination plant is to produce drinking water from seawater to supply the city of Honaine, Tlemcen. The plant supplies a population of almost one million. It has a capacity of 200,000 m³/day and has been operating since 2011.

India

• Chennai: The purpose of this desalination plant is to produce drinking water from seawater to supply the city of Chennai located in the state of Tamil Nadu in India. It has a capacity of 100,000 m³/day and has been operating since 2010.

China

• Qingdao: The purpose of this desalination plant is to produce drinking water from seawater for industrial use and human consumption in the city of Qingdao. It has a capacity of 100,000 m³/day and has been operating since 2013.

New concessions under construction

Construction of the Ténès desalination plant in Algeria is ongoing, which will supply half a million inhabitants and have a capacity of 200,000 m³/day.

Construction is underway of a desalination plant in Ghana, with a capacity of 60,000 m³/day, which will supply drinking water to localities in the metropolitan area of Accra, Theshie, Nungua and Tema.

Other concession activities

This section looks at Abengoa’s concession activities in electric and thermal energy (cogeneration), mini hydro plants, specific buildings and other non-standard concessions.

• Cogeneration: cogeneration generates electricity and high-temperature heat simultaneously. Its main advantage over other generation systems is its greater energy efficiency, making use of both heat and mechanical or electric energy in just one process, as opposed to using a conventional electric plant and boiler. In addition, it permits the generation of electricity close to the point of consumption, thus preventing voltage fluctuations and long-distance transmission, which tends to result in a loss of energy.
• Mini hydro plants and other infrastructures: this section looks at the operation of some small hydroelectric plants and the concession of an irrigation zone in Navarra (Spain).
• Specific buildings: this covers the operation of a variety of properties such as hospitals, courthouses and cultural centers.

Spain

• Cogeneración Villaricos in the province of Almeria, and Aprovechamientos Energéticos Furesa in Murcia. Both these cogeneration plants specialize in the generation of electricity and the use of heat to produce water or steam. The electricity is then sold, while the heat is used by the host industry.
• Abengoa operates the concession of the irrigation zone of the Navarra canal, levying an irrigation charge for this activity.
• For over 10 years, Abengoa has managed the Cerrato hydroelectric power station on the Pisuerga river and the mini plants on the Aragon and Catalonia Canal. 
• Abengoa has a 30-year concession for Hospital del Tajo, covering 58,000 m².
• The company owns the surface rights for construction, maintenance and operation, through a lease to the Autonomous Government of Catalonia, of the courthouses at Olot, Cerdanyola and Santa Coloma de Gramanet.