Norman ShillingLeaderProcess Power Plants

Understanding the NG to IGCC Conversion Option

GE Energy

2 / AEIC2004.ppt

LongLong--Term

TermNG Prices

NG Prices Permitting

Permitting

Public

Public

AcceptanceAcceptance

Coal

Coal

Avai

labi

lity

Avai

labi

lity

To R

efue

l to Refuel

SiteSiteSuitabilitySuitability

Existing

Existing

Agreements

Agreements

Asset

Asse t

Recove ry

Recove ry

StrategyStrategy

Or Not

Revisiting The Decision

3 / AEIC2004.ppt

• Natural Gas Price Volatility

Gas

LNG

WindOil

20

40

60

80

100

120

91 92 93 94 95 96 97 98 99 00 01 02 03

GW

Coal0

Gas

LNG

WindOil

20

40

60

80

100

120

91 92 93 94 95 96 97 98 99 00 01 02 03

GW

Coal0

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

Dec-90 Apr-92 Aug-93 Jan-95 May-96 Oct-97 Feb-99 Jul-00 Nov-01 Mar-03

$/M

MB

tu

• Above COE parity with coal

• Sharply falling NGCC investment

• Diminishing capacity factors for NGCC

Current Status

Source:US DOE EIA, Monthly Energy Review, August, 2004

Global Greenfield Investments

Utility Sector NG Cost

Source: Cambridge Energy Research Associates

Refueling Decision Factors

4 / AEIC2004.ppt

Financial EnvironmentalTreatment of residual value of NG plant Permittability of coal vs. NGCoal source & cost Legacy permitting & public relations for NG plantBase load demand vs. cycling Site environmental recharacterizationExisting demand contract arrangements Revised air modelingByproduct sales Local impact of coal and byproduct transportRevised contract services agreement SCR/ammonia system capabilityExisting NG supply contracts Higher exhaust flowOver-the-fence vs. on-the-books 15 ppm syngas & 25 ppm NG cofiringOutage/interruption for conversion Ammonia injection system

Site Suitability Reduced exhaust temperatureSpace for retrofit Sulfur & trace metals impact on catalyst

Distance from gasification to GTCC Accessibility for cleaningLarger GT enclosure & BOP Wash water treatment & dischargeArea for gasification plant CO catalyst capabilityAccessibility for GT modification PerformanceAccessibility for plant construction Level of GTCC integration

Coal availability and accessibility HRSG sizingMaterials logistics Rebalancing of ST

Coal transport means & delivery Generator capacity for higher outputCoal handling & storage OtherByproduct handling and storage System Interconnect re-applicationReagent sourcing, handling & storage Sulfur impact on downstream components

Site utilities Reclassification of operating staffAdditional cooling water Additional operating staff and craftsProcess water consumption New HAZOPS procedures

Financial

• Treatment of residual value of NG plant• Coal source & cost• Base load demand vs. cycling• Existing demand contract arrangements• Byproduct sales• Revised contract services agreement• Existing NG supply contracts• Over-the-fence vs. on-the-books• Outage/interruption for conversion

5 / AEIC2004.ppt

Financial Drivers

6 / AEIC2004.ppt

Power Block39%

Cleanup12%

Oxidant/ASU10%Gasification

39%

Power Block is major cost component of IGCC plant

Potential fornet coal plant

Cost <$1,000/kw

2.8

3.0

3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

GreenfieldIGCC

Refuel100%

Residual

Refuel90%

Residual

Refuel80%

Residual

Refuel70%

Residual

Refuel100%

Writeoff

1st Y

ear C

OE

(c/k

W-h

r)

ASSUMPTIONS$1.25/MMBtu Coal$1,450/kW IGCC

$25/kW SCR Upgrade92% CF IGCC

16% Fixed Rate10% Discount Rate

EconomicsAppropriate financial treatment will vary with utility

Example: Increase of depreciable asset or carryover of residual (undepreciated value) into new project.

7 / AEIC2004.ppt

8 / AEIC2004.ppt

• Space for retrofit• Distance from gasification plant to GTCC• Larger GT enclosure & BOP• Area for gasification plant• Accessibility for GT modification• Accessibility for plant construction• Coal availability and accessibility• Materials logistics

- Coal transport means & delivery- Coal handling & storage- Byproduct handling and storage- Reagent sourcing, handling & storage

• Site utilities- Additional cooling water- Process water consumption

Site Suitability

Site Suitability

9 / AEIC2004.ppt

Refueling Configurations

Configuration BenefitsSyngas supply only Commercially simpleNon-HR gasification

ORProcess Steam Utilization

Maximum siting flexibility

Steam diluent NOx control

Lowest capital costCentral gasification

Syngas and N2 supply Steam/water consumptionNon-HR gasification Improved HR

OR Flexible sitingProcess steam utilization Central gasification

Syngas and N2 supply Reduced steam consumptionNon-HR gasification Maximum GT output

OR Reduced ASU MAC & capitalProcess steam utilization Improved HRAir Extraction

Syngas and N2 supply Lowest HRHR gasification Highest GTCC outputGT/ASU Integration

Over-the-Fence

Nitrogen Return

GT/ASU integration

Full Integration

Other ConsiderationsRebalancing of steam cycleLowest efficiency, outputMaintenance of syngas superheatSteam diluent/water consumptionGT compressor limitationsShutdown and purge

Rebalancing of steam cycleGT compressor limitationsMaintenance of syngas superheatShutdown & purge

Rebalancing of steam cyclePlant retrofit spaceSystem controls lag

Rebalancing of steam cycleHighest capital costPlant retrofit space

10 / AEIC2004.ppt

11 / AEIC2004.ppt

Gasification IslandCoal Storage, Grinding, & HeatingSlurry Preparation & PumpingGasif ier UnitSyngas Cooling/Saturation/HeatingSyngas CleaningSulfur RecoveryProcess Island Sub-StationSyngas FlareAsh Handling SystemMain Process Contingency & Safety SystemProcess Island Interconnecting Piping & Cabling

Air Separation UnitMain Air CompressorOxygen CompressorNitrogen CompressorGas Turbine Ext/N 2 Heat ExchangerNitrogen SaturationASU AuxiliaryASU Control SystemASU Sub Station

Power IslandGas TurbineSteam TurbineGeneratorHRSGCondenserExpander Turbine GeneratorDemineralizerBoiler Feedw ater PumpsAuxiliary Cooling Water SystemPow er Island Sub-StationDistributed Control SystemTurbine BuildingPow er Island Interconnective Piping & Cabling

Pow er InputSyngas

HP SteamMP SteamLP Steam

LP Condensate Return

LP Feedw aterDemineralized Make-up Water

HP Economizer Water

Auxiliary Cooling Water Return

Process Condensate

MP Feedw ater

LP Condensate

Auxiliary Cooling Water

CoalConveying

RawW

ater

NaturalG

as

Power

Input

CirculatingW

ater

CirculatingW

ater

HP N 2Purge

HP O 2

Sulfur

Slag

Pow er Input

Air ExtractionHP N 2 Injection

Circulated WaterCirculated Water Return

Auxiliary Cooling Water

Auxiliary Cooling Water ReturnAuxiliary Steam to ASU

NaturalG

as

MunicipalW

ater

Pow

er

Output

LP O 2

What the Designer Would

Like

Gasification IslandCoal Storage, Grinding, & HeatingSlurry Preparation & PumpingGasif ier UnitSyngas Cooling/Saturation/HeatingSyngas CleaningSulfur RecoveryProcess Island Sub-StationSyngas FlareAsh Handling SystemMain Process Contingency & Safety SystemProcess Island Interconnecting Piping & Cabling

Air Separation UnitMain Air CompressorOxygen CompressorNitrogen CompressorGas Turbine Ext/N 2 Heat ExchangerNitrogen SaturationASU AuxiliaryASU Control SystemASU Sub Station

Power IslandGas TurbineSteam TurbineGeneratorHRSGCondenserExpander Turbine GeneratorDemineralizerBoiler Feedw ater PumpsAuxiliary Cooling Water SystemPow er Island Sub-StationDistributed Control SystemTurbine BuildingPow er Island Interconnective Piping & Cabling

Syngas

CoalConveying

RawW

ater

NaturalG

as

Power

Input

CirculatingW

ater

CirculatingW

ater

HP N 2Purge

HP O 2

Sulfur

Slag

Pow er Input

NaturalG

as

MunicipalW

ater

Pow

er

Output

LP O 2

Gasification IslandCoal Storage, Grinding, & HeatingSlurry Preparation & PumpingGasif ier UnitSyngas Cooling/Saturation/HeatingSyngas CleaningSulfur RecoveryProcess Island Sub-StationSyngas FlareAsh Handling SystemMain Process Contingency & Safety SystemProcess Island Interconnecting Piping & Cabling

Air Separation UnitMain Air CompressorOxygen CompressorNitrogen CompressorGas Turbine Ext/N 2 Heat ExchangerNitrogen SaturationASU AuxiliaryASU Control SystemASU Sub Station

Power IslandGas TurbineSteam TurbineGeneratorHRSGCondenserExpander Turbine GeneratorDemineralizerBoiler Feedw ater PumpsAuxiliary Cooling Water SystemPow er Island Sub-StationDistributed Control SystemTurbine BuildingPow er Island Interconnective Piping & Cabling

Syngas

CoalConveying

RawW

ater

NaturalG

as

Power

Input

CirculatingW

ater

CirculatingW

ater

HP N 2Purge

HP O 2

Sulfur

Slag

Pow er Input

NaturalG

as

MunicipalW

ater

Pow

er

Output

LP O 2

What the Utility Would

Like

Configuration

Integration

Extraction Air

Air Separation Unit

HP Oxygen

LP Oxygen

Clean Syngas

Nitrogen HumidifiedNitrogen

Steam

LP Steam / BFW

Exhaust

PowerNitrogen

Moisturizationand Heating

Gas Turbine -Steam Turbine -Generator Block

Supplemental Air Air Extraction0% -------------- Case A-------------- 100%50% -------------- Case B-------------- 50%100%-------------- Case C-------------- 0%

Supplemental Air Air Extraction0% -------------- Case A-------------- 100%50% -------------- Case B-------------- 50%100%-------------- Case C-------------- 0%

12 / AEIC2004.ppt

13 / AEIC2004.ppt

Gas Turbine Output vs. Ambient Temperature

0 20 40 60 80 100Ambient Temp. (Deg. F)

9FA

(MW

e)

7FA/9FACurrent Torque/IGCC Limit

Near Future Torque Limit

-20 -10 0 10 20 30 40Ambient Temp. (Deg. C)

Syngas

7FA/9FA - Natural Gas

7FA

(M

We)

Additional Output

Gas Turbine Output vs. Ambient Temperature

0 20 40 60 80 100Ambient Temp. (Deg. F)

9FA

(MW

e)

7FA/9FACurrent Torque/IGCC Limit

Near Future Torque Limit

-20 -10 0 10 20 30 40Ambient Temp. (Deg. C)

Syngas

7FA/9FA - Natural Gas

7FA

(M

We)

Additional Output

Performance

14 / AEIC2004.ppt

•Permitting of coal vs. NG• Legacy issues with NGCC plant• Site environmental re-characterization• Revised air modeling• Local impact of coal and byproduct transport• SCR/ammonia system capability

- Higher exhaust flow- NG co-firing- Ammonia injection system- SCR temperature- Sulfur & trace metals impact on catalyst- Accessibility for cleaning- Wash water treatment & discharge

• CO catalyst capability

Environmental

Environmental Factors IGCC NGCC CommentsNOx - Diffusion combustor

Syngas lb/MMBtu 0.07 0.01 BACT basis -- coal plant vs. NGCC?NG backup/Cofiring lb/MMBtu 0.11 NA Higher NOx w/ NG operation

NOx - SCR lb/MMBtu 0.02 0.01

SCR requires < 2ppm sulfurSCR temperatureAmmonia system capacitySulfur resistance of catalystSCR sizing for higher flowProvisions for SCR and HRSG wasHRSG materials & dewpoints

SO2lb/MMBtu 0.01 <0.001 Both well below conventional coal

PM lb/MMBtu <0.01 <0.01 Comparable performanceSUSD Emissions Longer time for startup/shutdown

Other Process stack ventsCoal pile

Local Impact Local impact of transport of coal, reagent, byproductIncreased water consumption

15 / AEIC2004.ppt

Size of the Opportunity

16 / AEIC2004.ppt

Bituminous

Sub bituminous

Anthracite

Active MineLignite

Bituminous

Sub bituminous

Anthracite

Active MineLignite

CONNECTICUT

WEST VIRGINIA

VIRGINIA

PENNSYLVANIA

OHIO

ONTARIO

NORTH CAROLINA

FLORIDA

TENNESSEE

SOUTH CAROLINA

LOUISIANA

Hanging RockHanging RockHanging RockHanging RockHanging RockHanging RockHanging RockHanging RockHanging Rock

ALABAMA

ARKANSAS

DISTRICT OF COLUMBIA

GEORGIA

IOWA

ILLINOIS INDIANA

KENTUCKY

MASSACHUSETTS

MISSOURI

MISSISSIPPI

NEW JERSEY

NEW YORK

Bethlehem (CIV)Bethlehem (CIV)Bethlehem (CIV)Bethlehem (CIV)Bethlehem (CIV)Bethlehem (CIV)Bethlehem (CIV)Bethlehem (CIV)Bethlehem (CIV)Brunot IslandBrunot IslandBrunot IslandBrunot IslandBrunot IslandBrunot IslandBrunot IslandBrunot IslandBrunot Island

GermanGermanGermanGermanGermanGermanGermanGermanGerman

Grand TowerGrand TowerGrand TowerGrand TowerGrand TowerGrand TowerGrand TowerGrand TowerGrand Tower

Hog Bayou Energy CenterHog Bayou Energy CenterHog Bayou Energy CenterHog Bayou Energy CenterHog Bayou Energy CenterHog Bayou Energy CenterHog Bayou Energy CenterHog Bayou Energy CenterHog Bayou Energy Center

Reliant Energy Choctaw CountyReliant Energy Choctaw CountyReliant Energy Choctaw CountyReliant Energy Choctaw CountyReliant Energy Choctaw CountyReliant Energy Choctaw CountyReliant Energy Choctaw CountyReliant Energy Choctaw CountyReliant Energy Choctaw County

Near Northern / Central / Southern Appalachian Coal

Basin SourceCONNECTICUT

WEST VIRGINIA

VIRGINIA

PENNSYLVANIA

OHIO

ONTARIO

NORTH CAROLINA

FLORIDA

TENNESSEE

SOUTH CAROLINA

LOUISIANA

Indiantown Cogeneration FacilityIndiantown Cogeneration FacilityIndiantown Cogeneration FacilityIndiantown Cogeneration FacilityIndiantown Cogeneration FacilityIndiantown Cogeneration FacilityIndiantown Cogeneration FacilityIndiantown Cogeneration FacilityIndiantown Cogeneration Facility

Bridgeport HarborBridgeport HarborBridgeport HarborBridgeport HarborBridgeport HarborBridgeport HarborBridgeport HarborBridgeport HarborBridgeport HarborHudson (PSEGF)Hudson (PSEGF)Hudson (PSEGF)Hudson (PSEGF)Hudson (PSEGF)Hudson (PSEGF)Hudson (PSEGF)Hudson (PSEGF)Hudson (PSEGF)

EddystoneEddystoneEddystoneEddystoneEddystoneEddystoneEddystoneEddystoneEddystoneMuskingum RiverMuskingum RiverMuskingum RiverMuskingum RiverMuskingum RiverMuskingum RiverMuskingum RiverMuskingum RiverMuskingum River

Hatfields Ferry Power StationHatfields Ferry Power StationHatfields Ferry Power StationHatfields Ferry Power StationHatfields Ferry Power StationHatfields Ferry Power StationHatfields Ferry Power StationHatfields Ferry Power StationHatfields Ferry Power Station

River RougeRiver RougeRiver RougeRiver RougeRiver RougeRiver RougeRiver RougeRiver RougeRiver Rouge

Stanton Energy CenterStanton Energy CenterStanton Energy CenterStanton Energy CenterStanton Energy CenterStanton Energy CenterStanton Energy CenterStanton Energy CenterStanton Energy Center

CristCristCristCristCristCristCristCristCrist

Allen (TVA)Allen (TVA)Allen (TVA)Allen (TVA)Allen (TVA)Allen (TVA)Allen (TVA)Allen (TVA)Allen (TVA)

Martin (FPL)Martin (FPL)Martin (FPL)Martin (FPL)Martin (FPL)Martin (FPL)Martin (FPL)Martin (FPL)Martin (FPL)

Bergen (PSEGF)Bergen (PSEGF)Bergen (PSEGF)Bergen (PSEGF)Bergen (PSEGF)Bergen (PSEGF)Bergen (PSEGF)Bergen (PSEGF)Bergen (PSEGF)Bridgeport EnergyBridgeport EnergyBridgeport EnergyBridgeport EnergyBridgeport EnergyBridgeport EnergyBridgeport EnergyBridgeport EnergyBridgeport Energy

Brooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioBrooklyn Navy Yard CogeneratioRavenswoodRavenswoodRavenswoodRavenswoodRavenswoodRavenswoodRavenswoodRavenswoodRavenswood

Liberty Electric ProjectLiberty Electric ProjectLiberty Electric ProjectLiberty Electric ProjectLiberty Electric ProjectLiberty Electric ProjectLiberty Electric ProjectLiberty Electric ProjectLiberty Electric ProjectWaterford (psegp)Waterford (psegp)Waterford (psegp)Waterford (psegp)Waterford (psegp)Waterford (psegp)Waterford (psegp)Waterford (psegp)Waterford (psegp)

Washington Energy FacilityWashington Energy FacilityWashington Energy FacilityWashington Energy FacilityWashington Energy FacilityWashington Energy FacilityWashington Energy FacilityWashington Energy FacilityWashington Energy Facility

GermanGermanGermanGermanGermanGermanGermanGermanGerman

Dearborn Industrial Generation LLCDearborn Industrial Generation LLCDearborn Industrial Generation LLCDearborn Industrial Generation LLCDearborn Industrial Generation LLCDearborn Industrial Generation LLCDearborn Industrial Generation LLCDearborn Industrial Generation LLCDearborn Industrial Generation LLC

Hopewell CogenerationHopewell CogenerationHopewell CogenerationHopewell CogenerationHopewell CogenerationHopewell CogenerationHopewell CogenerationHopewell CogenerationHopewell Cogeneration

Bell meadeBell meadeBell meadeBell meadeBell meadeBell meadeBell meadeBell meadeBell meade

StantonStantonStantonStantonStantonStantonStantonStantonStanton

Santa Rosa (SKYSER)Santa Rosa (SKYSER)Santa Rosa (SKYSER)Santa Rosa (SKYSER)Santa Rosa (SKYSER)Santa Rosa (SKYSER)Santa Rosa (SKYSER)Santa Rosa (SKYSER)Santa Rosa (SKYSER)

SouthavenSouthavenSouthavenSouthavenSouthavenSouthavenSouthavenSouthavenSouthaven

Chouteau (AECI)Chouteau (AECI)Chouteau (AECI)Chouteau (AECI)Chouteau (AECI)Chouteau (AECI)Chouteau (AECI)Chouteau (AECI)Chouteau (AECI)

Sugar CreekSugar CreekSugar CreekSugar CreekSugar CreekSugar CreekSugar CreekSugar CreekSugar Creek

ALABAMA

ARKANSAS

DELAWARE

GEORGIA

IOWA

ILLINOIS INDIANA

KENTUCKY

MASSACHUSETTS

MISSOURI

MISSISSIPPI

NEW YORK

ChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfieldChesterfield

Grand River Dam (GRDA)Grand River Dam (GRDA)Grand River Dam (GRDA)Grand River Dam (GRDA)Grand River Dam (GRDA)Grand River Dam (GRDA)Grand River Dam (GRDA)Grand River Dam (GRDA)Grand River Dam (GRDA)

Wabash RiverWabash RiverWabash RiverWabash RiverWabash RiverWabash RiverWabash RiverWabash RiverWabash River

Within 10 miles of an Eastern Coal Plant >

300MWOr

Co-located at a coal generation facility

0

5

10

15

20

# of Sites 207FA Plants 307FA Plants

#

Near Coal Source Near Coal Plant Co-located with Coal Plant

First Level Screening

7FA EvolutionPG7211(F) PG7221(FA) PG7241(FA)PG7231(FA)

Turbine SC Output, MW 150 159 167.8 171.7

1X CC Output, MW - 253.4 258.8 262.6

1X CC Efficiency, LHV - 55.0 56.0 56.0

Firing Temperature, C 1260 1287 1316 1327

Pressure Ratio 13.5:1 15:1 15:1 15.5:1

Compressor Stages 18 18 18 18

Turbine Stages 3 3 3 3

Combustion Chambers 14 14 14 14

Year of First Shipment 1989 1992 1996 1999

17 / AEIC2004.ppt

18 / AEIC2004.ppt

Air ExtractionSyngas& Diluent

InjectionSkids

Mark VI IGCC Controls

IGCC Combustion System• MNQC Type• SG/ NG or Distillate• N2, Steam or N2+Steam• Air Extraction

Larger Stage 1 Turbine Nozzle• 7211 component• Modified Retaining & Support Ring

Air ExtractionSyngas& Diluent

InjectionSkids

Mark VI IGCC Controls

IGCC Combustion System• MNQC Type• SG/ NG or Distillate• N2, Steam or N2+Steam• Air Extraction

Larger Stage 1 Turbine Nozzle• 7211 component• Modified Retaining & Support Ring

7FA F-F Modifications

19 / AEIC2004.ppt

Inlet Bleed Heat

System

Enclosure Mods:• Piping – SG, Diluent, Air Ext• Explosion Proofing• Hazardous Gas Detection• Fire Protection

Ventilation Mods

Syngas Fuel Skidw/N2 Purge System

Opt. Air Ext. Skid

IGCC Controlsw/Added I/O

N2/StmInjection Skid

Inlet Bleed Heat

System

Enclosure Mods:• Piping – SG, Diluent, Air Ext• Explosion Proofing• Hazardous Gas Detection• Fire Protection

Ventilation Mods

Syngas Fuel Skidw/N2 Purge System

Opt. Air Ext. Skid

IGCC Controlsw/Added I/O

N2/StmInjection Skid

Accessory & Packaging Modifications

20 / AEIC2004.ppt

IGCC Power Eng. & Equipment CycleNTP

Release N.G.

SyngasComm.

Manufactur'gRelease COD

M’facture

4018

CODSyngas

4028

Site Construction

366 12-18 -12 -6 0 18 24

12 18 24 30-6 0 6

CODFEEDPackage

DetailedEngineering

IGCC Process Eng. & Equipment Cycle

36-30 -24 -18 -12 -6 0 6 12

12 18 24 30

MONTHS

MONTHS

LOI SHIPCycleConfig.

-6 0 6

SyngasComm.

Detailed Engineering& Combustion Validate Install

1st

Fire

NTPRelease

IGCC Power Eng. & Equipment CycleNTP

Release N.G.

SyngasComm.

Manufactur'gRelease COD

M’facture

16

CODSyngas

Site Construction

366 120 18 24

12 18 24 306

CODFEEDPackage

DetailedEngineering

IGCC Process Eng. & Equipment Cycle

360 6 12

12 18 24 30

MONTHS

MONTHS

LOI SHIPCycleConfig.

0 6

SyngasComm.

Detailed Engineering& Combustion Validate Install

1st

Fire

NTPRelease

Conceptual Refueling Timeline

FirstShovel

Summary

21 / AEIC2004.ppt

• Refueling is a potential option for recovery of NPV and re-use of strained or impaired assets

• 7FA’s are amenable to conversion for syngasoperation

• Site characteristics are key to determining a refueling strategy and design

• Developing a permitting strategy is a critical factor for sucess

• The number of refueling opportunities will require an in-depth evaluation on a site-by-site basis