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LNG WORKSHOP

VANCOUVER

NATURAL GAS AND DUAL FUEL POWER GENERATION

APRIL 17, 2012

MARK KENNEDY

WÄRTSILÄ CANADA

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About WärtsiläPower PLANTs

Services

Ship power

175 years of experience

• Headquartered in Helsinki, Finland

• Traded on the OMX NASDAQ (WRT)

• $7 billion annual sales

• 17,000 employees in 70 countries

• WNA 650 employees (WCA 150, WUS 500+)

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Marine - Wärtsilä-Sulzer RTA96

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109,900 hp

2300 tons

Length: 89 feet

Height: 44 feet

Turbocharged two-stroke diesel engine - the most powerful and

most efficient prime-mover in the world today

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Those are two stroke,“Slow - Speed” engines.

We only sell them for powering ships like the

“Emma Maersk”

55 © Wärtsilä 24 April 2012 Ausenco Sandwell / Whitney

Let’s look at “Energy” i.e. Power Generation

Generator Set Portfolio

1512.510

Generator set size [MW]

7.552.50

W20

W34SG/W34DF

W46 / W50DFLFO, HFO, LBF, GAS

LFO, HFO, LBF

20.0

LFO – Light Fuel OilHFO – Heavy Fuel Oil LBF – Liquid Bio Fuel GAS – Natural Gas

LFO, HFO, LBF, GAS

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1,900 MW in Canada & US

Iles de la Madeleine-67 MWNear Québec

Ohio-11 MWMiami University, Oxford

Hawaii - 38 MWMaui Pineapple 6 MW

Kauai Utility 32 MW

New Mexico – 49 MWRaton 7 MW

LCEC 42 MW*

Alaska- 76 MWCity of Ketchikan 10 MW

Red Dog Mine 40 MW

Westward Seafoods 6 MW

Dutch Harbor 10 MW

Nome 10 MW

Minnesota-14 MWNorthern States Power

Ontario-5 MWCity of Cornwall

Kansas- 87 MW

Midwest Energy 76 MW

City of Iola 11 MW

Louisiana-12 MWEl Paso 16,000 Hp

CompressionArkansas-18 MW

City of Paragould

Mississippi-12 MWEl Paso 16,000 Hp

Compression

Alabama-41 MWMobile Bay

Missouri-12 MWCity of Kennett

Tennessee-12 MWEl Paso 16,000 Hp

Compression

Pennsylvania-23 MWBorough of Chambersburg

Maryland-31 MWSweetheart Cup 11 MW

BG&E 14 MW

Federal Research Center 6 MW

New Jersey -9 MWMannington

Illinois-25 MWUniversity of Illinois

Michigan- 17 MWDetroit Airport

Washington- 47 MW

Boulder Park 32 MW

SIP 8 MW

Olympic View 7 MW

NW Territories, Nunavut-29MWCity of Iqaluit 20 MW

City of Inuvik 9 MW

Oregon-16 MW

Wah Chang

California- 270 MW

Modesto 50 MW *

Humboldt 163 MW

Red Bluff 57 MW

Colorado-229 MW

Plains End, 113 MW

Plains End II, 116 MW

Nevada -118 MW

Barrick Goldstrike Mine

Indiana-8 MWCity of Rensselaer

Texas- 404MW

Antelope (Golden Spread)

170 MW*Greenville (GEUS) 25 MW

Pearsall Power Plant 203 MW

Duke/MHP 8,000 Hp – 6 MW

Compression

Fort Nelson, BC-

45MWEnCana*

77 © Wärtsilä 24 April 2012 Ausenco Sandwell / Whitney

Mining – a big business for Wartsila

~68 Projects

19 Countries

235 Engines

~1300 MW

Teck Cominco Red Dog

Plutonic

Batu Hijau

Lihir

Bema Gold

OK Tedi

Freeport

Quebrada Blanca

Alrosa

Omai

Barrick Western 102 etc.

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Natural Gas: Vast Energy Resource in North America

North American Natural Gas Basins

Abundant and Widespread

Over a 100 Year Supply at 70 Bcf/d

Canada and U.S.

Natural Gas Resource Estimates

0

25

50

75

100

125

PGC/N

EB 200

6

EIA

/NEB 2

007

EIA

/NEB 2

009

PGC/N

EB 200

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PGC/N

EB 201

1R

LI @

70

Bcf/d

(ye

ars

)

0

500

1 000

1 500

2 000

2 500

3 000

To

tal R

eso

urc

e P

ote

ntia

l (T

cf)Resource

Reserves

7178

89

98 101

Source: EIA, NEB, PGC, IHS Energy, CSUG

Technology Continues to Unlock Shale Gas

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Power Generation Capacity Additions

Natural gas

dominates new

capacity after

1990

Nearly all nuclear and

coal capacity in service

before 1990

Coal and Nuclear units are aging. Nearly 80% of coal units

are 30 years old or more

Major natural

gas additions

in the 2000’s

Source: Energy Information Administration (EIA)

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Gas as the New Fuel

•Abundant

•Domestic

•Cheap

•Clean

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A good example of this new natural gas landscape is playing out

right here at the BC / Yukon border...

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Wartsila 43 MW (5 x 20V34SG)

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Inside the Power House

Speed: 720 rpm Length: 42 ft Width: 11 ft Height: 14 ft Weight: 124 tons

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Storage Tanks

Vaporisers

Wartsila 25 MW

Power Plant

Simple Solution for Pipeline Supply or LNG

Heat required is

negligible, available

from engine cooling

system

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Examples of Tank Solutions

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Modesto, California 50 MW

Footprint: 50 MW power

plant on a 3 acre site

Power Plant Design

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Exhaust gas silencer

+16000, 52’-6”

Rupture disc

Charge air filter

Expansion vessel

Ventilation unit Auxiliary moduleGas regulating unit

Engine-Generator set

Ventilation unit

Charge air & exhaust gas module

DeNOx (SCR)unit

21250

69’-8½"17400

57’-1”

Distance depends on exhaust gas equipment

Space for

MV cables

+10950, 35’-11”

+10950, 35’-11”

(Steel frame)

+5560, 18’-3”

+4760, 15’-7½”

Engine Hall Section

Power Plant Design Video

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Reciprocating Engine Value Proposition

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Fuel Flexibility

• DUAL FUEL Natural Gas and Liquid Fuels

•Ability to change between liquids and gas on-line

•Renewable Fuels eg. biodiesel

Wartsila Tri Fuel Power Plant in DR: LNG / Diesel / HFO

2222 © Wärtsilä 2011

Fuel Flexibility

•Dual Fuel: back-up when primary fuel supply is disrupted

•Set up dual fuel when you know LNG is coming..

•Can utilise the cheaper fuel if prices swing

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 5 10 15 20 25 30 35 40

Ele

ctr

ical eff

icie

ncy (

%)

Plant Electrical Power (MW)Source: Alstom product broschure 01; Wärtsilä perf

5 x 20V34DF

Industrial GT

•- Best Simple Cycle efficiency available

•- The multi unit gas engine power plant has very high part load efficiency

Energy Efficiency

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Reciprocating Gas engines offer stable output and

high performance at high altitudes

0.65

0.7

0.75

0.8

0.85

0.9

0.95

1

1.05

1.1

0 500 1000 1500 2000 2500 3000

De

rati

ng

fa

cto

r

Gas turbine and gas engine output derating due to altitude

(at 15C, ISO conditions for GT:s)

Industrial Gas turbine

20V34SG(radiator cooling)

Aeroderivate Gas turbine

Energy Efficiency

Metres above seal level

Wartsila 20V34SG

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Operational Flexibility

• 5 minute start

• Unlimited starts/stops per day, per year

• No starting costs or equivalent running hours

• No minimum run time or up time

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Operational Flexibility

• High Reliability

– Multiple units – each unit is an isolated system

• High Availability

– Maintenance done on site during non-critical hours, involving one unit at a time

• Rugged Design

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• Negligible water consumption with closed loop cooling

• Uses low pressure gas

– 75 psig gas – no need for aux. gas compressor. Can use gas directly from the LNG tank.

• No output degradation

– Full output through the lifecycle of the plant

– Negligible heat rate degradation between overhauls

Other Reciprocating Engine Advantages:

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Low Emissions

• Nox - Nitrogen oxides: 5 ppm (0.064 g/kWh) (as NO2)

(dry, at 15 vol-% O2) - with SCR

• CO - Carbon monoxide: 15 ppm (0.12 g/kWh)

(dry, at 15 vol-% O2) - with CO catalyst

• VOC 25 ppm (0.12 g/kWh)

(dry, at 15 vol-% O2)

• Particulates (total) (0.12 g/kWh)

(at 15 vol-% O2)

2

8

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Plant Aesthetics

• Design makes the project look like a typical warehouse

• No visible smoke, fumes or steam release

• Noise according to local codes. Typically 70dB at the fence

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Barrick Nevada, 116 MW

14 x 20V34SG

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Sangachal 300 MW – Dual Fuel Gas / Fuel Oil

31 © Wärtsilä 2011

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Wartsila Flexicycle™ Dual Fuel 216 MW LNG/HFO

Quisqueya 1 Combined Cycle

Barrick Gold, Pueblo Viejo Gold Mine

Combined cycle mode – for competitive large base load power

» 52.1% plant efficiency

» Switch back to simple cycle on the run

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Flexicycle™ Combined cycle

1. Heat Recovery Steam Generator (HRSG)

2. Feed Water Tank

3. Steam Turbine

4. Condenser

5. Condensate preheater

6. Auxiliary Boiler

7. Cooling Tower

8. Engine preheater

1

2

3

4

7

8

6

5

• Engine preheating by steam

6 x 18V50SG + ST

3

3

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Conclusion

• LNG: domestic, abundant, cleaner & cheaper than oil

• Easy fuel to use for power generation• Requires LNG storage tanks / Vaporiser

• Dual Fuel option provides flexibility & reliability

• Various configurations of plant depending on size and need

• Modern reciprocating engines offer many advantages over other technologies

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Power by Wärtsilä

Thank you!Vince Huber

Based in Vancouver

(604) 244 - 8181

vincent.huber@wartsila.com

Mark Kennedy

Based in Vancouver

(604) 218 – 1567

mark.kennedy@wartsila.com