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's activity report 2022

AS Silpower is a company that consists of three cogeneration plants (CHP-1 biofuel and oil shale cogeneration plant, formerly known as Sillamäe power plant, CHP-2 gas engine cogeneration plant and CHP-3 biofuel cogeneration plant), electricity networks, steam networks, sewage networks, heat networks, seawater network, and groundwater and river water networks.

AS Silpower supplies heat energy to the city of Sillamäe.

AS Silpower's major customers include NPM Silmet OÜ, AS DBT, EuroChem Terminal Sillamäe and

Nord Terminals AS.

In 2022, AS Silpower continued to supply consumers with heat, electricity, drinking and technological water, and provided wastewater sewerage services.

In recent years, AS Silpower has undergone active development and investment activities with the aim of renovating depreciated equipment and significantly increasing the reliability of the entire infrastructure. These investments are largely also aimed at environmental protection in order to comply with current environmental standards and industrial emissions directives.

In 2022, an investment was completed for the construction of a flue gas condenser (FGC) for a biofuel cogeneration plant. The moisture content of biomass can reach up to 60%. Therefore, there is a lot of water vapor in the flue gases, the energy contained in which can be converted back into useful energy using a flue gas condenser (FGC). By the end of 2022, the biofuel boiler no. 2 had been reconstructed with the aim of reducing the heat capacity of CHP-1 and thereby improving operating regimes at different heat loads. Oil shale boilers no. 3 and 5 have been conserved, and in the coming years, a decision will be made on the reconstruction of these boilers to meet current requirements or their liquidation.

The heat production in 2022 amounted to 302,884 MWh, electricity production 48,288 MWh.

The main investments of the reporting year were aimed at increasing the production efficiency of the biofuel cogeneration plant and extending the service life of the equipment and increasing the reliability in old cogeneration plants.

The main investments in 2022 were:

Construction of a flue gas condenser (FGC) for a biofuel cogeneration plant;

Reconstruction of the furnace of biofuel boiler no. 2;

Increasing the productivity of CHP-3 chemical water treatment by expansion. Increasing the productivity of CHP-3 chemical water treatment by 10 t/h allows to operate with only one cogeneration plant CHP-3 during the summer period.

Connection to the Silsteve heat network;

Purchase of a Hitachi ZW220 front loader (capital lease);

Reconstruction of the port drinking and river water pipelines;

The main repair works in 2022 were:

Connection to the Aragas store heat network;

Performing annual maintenance of CHP-3.

The research and development costs for 2022 include consulting fees and other legal fees including consulting, obtaining offers and preparing documents for the acquisition of new equipment, consulting on the purchase of insurance, obtaining relevant offers and preparing documents, consulting on the handling of damage cases along with the preparation of documentation. Consulting on changes in legislation and planning necessary activities arising from new legislation, consulting for compliance with the Commercial Code and preparation of necessary documentation. Consulting on the preparation of contract projects and interpretation of contract clauses. Ongoing consulting of the board on contract law issues.