Technip Supporting Malaysian OTEC Ambitions

Jim O’SULLIVAN, CTO TechnipKuala Lumpur, Malaysia

September 2015

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Table of contents

1. Technip Today

2. OTEC Design & Economic Issues

3. Malaysian OTEC Opportunities

Technip Today

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Technip Today

With engineering, technologies and project management, on land and at sea, we safely and successfully deliver the best solutions for our clients in the energy business

Worldwide presence with over 38,000 people in 48 countries

Industrial assets on all continents, a fleet of 27 vessels (of which 6 under construction)

2014 revenue: €10.7 billion

ENERGY IS AT THE CORE OF TECHNIP

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Technip’s global HSES climate change program

A Reference Company in HSES ( Chevron,

Wheatstone, Shell Prelude, Shell Malikai,

Petronas RAPID)

“ The Health and Safety of our people is

a core value and an absolute commitment ”

Thierry Pilenko,

Chairman and CEO of Technip

DELIVERING EXCELLENT

HSES PERFORMANCE AT

EVERY LEVEL

An Absolute Commitment to HSES

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Fleet & others

3,400

Malaysia Major Technip Resource Center

Asia Pacific

6,000

4,200

4,000

4,600

2,500

9,800

1,000

2,500

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3,000 in MalaysiaTechnip Projects:

Kikeh

Gumusut- Kakap

Malikai

Petronas FLNG1 Fabrication – Part Owner MMHE Marine Vessels

Engineering &

Project ManagementAsiaflex Products, flexible pipe and

umbilical manufacturing plant

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OTEC –Technip – Malaysia

Technip globally covers the full range of OTEC technologies and delivery

capabilities, and envisions OTEC facilities as a future design and delivery

service.

Technip has a very strong organization in Asia Pacific, centered in Malaysia

where we have maintained strong client relationships and made substantial

investments.

Technip understands Malaysia’s desire to be a leader in OTEC and wants to

support that ambition.

Offshore Malaysia represents an ideal environment for a demonstration

plant and educational facility.

OTEC Design & Economic Issues

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OTEC Plant Architecture

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Technip has design engineers and supplier networks for all OTEC components

OTEC System

Power Generation

Power DeliveryInstrument &

ControlPlatform

Hull Structure

Super Structure

Station Keeping

Marine System

Heat Exchanger

Cold WaterLift System

Warm WaterLift System

Mixed Water Discharge

System

Platform Substation

Power Transmission

Onshore Substation

Platform Management

Power Cycle Management

Environmental Monitoring

Management

Ammonia System

Integration & Installation

Platform Fabrication

Facilities Integration

Transportation and

Installation

Technip Did Designs for 5, 10 & 100 MW Net

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T-101

AMMONIA

TURBINE/

GENERATOR

P-101A/B

AMMONIA

FEED PUMP

WARM

SEAWATER

SUPPLY

(20 m depth)

PC

LC

COLD SEAWATER

SUPPLY

(1000 m depth)

DISCHARGE (60 m depth)

E-101A-F

AMMONIA

EVAPORATOR

(Weiland Tube)

E-102A/B

AMMONIA

CONDENSER

(Weiland Tube)

V-102

AMMONIA

DEMISTER

P-301A/B

COLD WATER

LIFT PUMP

1004

1005

1007

FC

FI FI2006

3001

3003A

3005

3006

4003A

WARM WATER

PIPE (HDPE)

DISCHARGE

PIPE (HDPE)

COLD WATER

PIPE (HDPE)

F-101A/B

AMMONIA

FILTER

OTEC - PROCESS FLOW DIAGRAM

CASE X1 – TP 5MW Pilot (Delivered Power)

Weiland Tube Evaporator/

Weiland Tube Condenser

1008

V-101

AMMONIA

BUFFER

VESSEL

1001

2006

S-201

WARM WATER

SUMP

S-301

COLD WATER

SUMP

S-401

RETURN

WATER

SUMP

P-102A/B

AMMONIA

CIRCULATING PUMP

1006

1002

1003

2001

2007

3002A

3007

2003

2004 3004

3003

100111.1 C

5.33 bar_g

223.6 kg/s

0.36 m3/s

5739 gpm

100211.29 C

10.29 bar_g

223.6 kg/s

0.36 m3/s

5739 gpm

100311.32 C

8.29 bar_g

223.6 kg/s

vfrac= 0

200628.5 C

0.22 bar_g

20845.3 kg/s

100422.59 C

8.29 bar_g

468.3 kg/s

0.77 m3/s

12334 gpm

100522.6 C

8.45 bar_g

100622.59 C

8.29 bar_g

468.3 kg/s

vfrac= 0.5

100722.32 C

8.13 bar_g

223.6 kg/s

vf rac= 1

100811.82 C

5.5 bar_g

223.6 kg/s

vfrac= 0.982 200725.2 C

0.01 bar_g

20845.3 kg/s

20.91 m3/s

331452 gpm

30079 C

0 bar_g

13920.9 kg/s

13.92 m3/s

220740 gpm

30064.2 C

0.27 bar_g

13920.9 kg/s

13.92 m3/s

220705 gpm

400118.7 C

0.01 bar_g

34766.3 kg/s

34.82 m3/s

551989 gpm

T-101

8000 kW

81.0%

P-301

1086 kW

70.0%

P-201

690 kW

70.0%

P-102

21 kW

60.7%

P-101

296 kW

60.7%

Make-Up

Ammonia

Working Fluid

WW:CW ratio 1.50

WW Temp 28.5 C

CW Temp 4.2 C

Working Fluid NH3

SW Hysys-Fresh Water

Efficiencies

Water Pumps 70%

Working fluid Pumps 61%

Pow er Turbine 81%

Generator 96%

Delivered Pow er Eff 94%

HX min. approach temp.

Evaporators 2.6 C

Condenser 2.1 C

E-101

287.9 M W

UA 78.91E6W/C

2.6 C M in App

U= 3383 W/C

A= 23325m2

Shells= 5.7

E-102

280.3 M W

UA 61.5E6W/C

2.1 C M in App

U= 2722 W/C

A= 22593m2

Shells= 1.8

NH3 Feed Pump 296 kw

NH3 Circ. Pump 21 kw

WW Lift Pump 689 kw

CW Lift Pump 1,085 kw

Hotel Load 270 kw

Total Parasitic Power 2,361 kw

NH3 Turbine Power 8,001 kw

Generator Power 7,681 kw

Net Power 5,320 kw

Ratio Gen/Net Power 1.44

Delivered Power 5,001 kw

Warm Water Flow 20,845 kg/s

Cold Water Flow 13,921 kg/s

Working Fluid Flow 224 kg/s

T-101

8000 kW

81.0%

G-101

7681 kw

96.0%

Parasit ic

2361 kw

N et Power

5320 kw

D elivered P

5001 kw

94.0%

P-201A/B

WARM WATER

LIFT PUMP

200328.5 C

-0.001 bar_g

20845.3 kg/s

20.93 m3/s

331755 gpm

30034.2 C

-0.254 bar_g

13920.9 kg/s

13.92 m3/s

220710 gpm

4001

4003A18.71 C

5.88 bar_g

30014.2 C

98.05 bar_g

200128.5 C

1.95 bar_g

Hydraulics

WW#1 inlet Head+Line Loss 0.00 (bar)

WW#1 Evaporator loss 0.15 (bar)

WW#1 Duct loss+Disch Loss 0.08 (bar)

WW#1 pump head req 0.23 (bar)

CW#1 inlet Head+Line Loss 0.26 (bar)

CW#1 Condenser loss 0.21 (bar)

CW#1 Duct loss+Disch Loss 0.08 (bar)

CW#1 pump head req 0.55 (bar)

NH3 #1 Evaporator loss 0.16 (bar)

NH3 #1 Condenser loss 0.16 (bar)

NH3 #1 Pump CV discharge loss2.00 (bar)

5MW Plant Served As The Building Block

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Considered Motions, Fabrication & Installation Issues For Hull Selection vs Power Capacities

Spar Type

Advantages

Best in-situ stability for cold pipe design

Best operability in cyclonic regions

Disadvantages

Horizontal fabrication, transport, on site up-righting and topside installation

Access for maintenance in hull

Multi-Column Type

Advantages

Vertical fabrication and integration

Relatively good stability in cyclonic regions with large deck areas

Disadvantages

Access for maintenance in hull

Low hull inefficiency for higher power capacity

Ship Shape Type

Advantages

Lowest cost for supporting facilities

Drydock fabrication and quayside topside integration with large deck areas

Disadvantages

Vessel motions in cyclonic regions – difficult cold pipe designs

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Caisson Type

Advantages

Spar like stability – excellent operability in cyclonic region

Vertical fabrication, transportation and installation

Good hull efficiency and access for maintenance

Disadvantages

Fabrication sites

Resulting Installed CAPEX Curve Similar To Published Curves … But Marginally Higher

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0

5000

10000

15000

20000

25000

30000

35000

40000

45000

0 20 40 60 80 100

Inst

alle

d C

apit

al C

ost

($

/kW

)

Nominal Plant Size, MW-net

Technical Price Estimates for 5, 10 and 100 MW Net OTEC Power Plants, Installed

< 20MW the installed cost

strong function of floater

> 20MW the installed cost strong function

of numbers of heat exchangers

Δ

Δ

Δ

Differences were in integration, transportation and installation …

not in hardware and hull

Majority Of Potential Users Have Positive Returns With Today’s Energy Prices

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Market expected return

Source: NYU Stern School of Business for Weighted Average

Cost of Capital (WACC) of Global Power Generation 2013

Malaysian OTEC

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Potential for OTEC in Malaysia

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Mild environment,

>1000m depth (Sabah Trench),

DT>25C ,

<120km offshore

Several near-by production facilities – power users

Technip Has Been Involved In Several Sabah Trough Deliveries – Know Area Well

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MURPHY Kikeh Spar

Dry Tree Unit + Subsea

facilities, Offshore Sabah

(Engineering, Procurement,

Construction & Installation)

SHELL Gumusut-Kakap Semi-Sub,

Offshore Sabah

(Detailed Engineering)

Shell Malikai TLP , Malaysia

( Engineering, Procurement, Construction )

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Sabah O&G Deepwater: Technip’s OTEC Integration Plan

Study O&G fields across entire Sabah Deepwater / Trough

Identify power demand for each O&G DW cluster

Identify strategies that optimize power costs considering both OTEC and conventional Gas-Fired Turbine Power Generation

Support Petronas and PSCs to become pioneer of this hybrid solution and promote it worldwide!

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Summary

We can do this

OTEC technology is mature

Ample supplier base for key components

Availability of advanced testing facilities

Economics are workable

Power generation clear visible market

There are other less visible markets

Malaysia is an ideal location for OTEC industry

Environment ideal

National resources available

www.technip.com

Thank you

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