Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal...

24
Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations GE Power Digital Solutions October 5, 2016 National Coal Council Annual Conference Milwaukee WI

Transcript of Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal...

Page 1: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions

Peter Kirk, Executive, Business Operations

GE Power Digital SolutionsOctober 5, 2016

National Coal Council Annual Conference – Milwaukee WI

Page 2: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

2

© 2016, General Electric Company.

GE Proprietary Information - The information contained in this document is General Electric Company (GE)

proprietary information. It is the property of GE and shall not be used, disclosed to others or reproduced

without the express written consent of GE, including, but without limitation, in the creation, manufacture,

development, or derivation of any repairs, modifications, spare parts, or configuration changes or to obtain

government or regulatory approval to do so, if consent is given for reproduction in whole or in part, this

notice and the notice set forth on each page of this document shall appear in any such reproduction in

whole or in part. The information contained in this document may also be controlled by the US export

control laws. Unauthorized export or re-export is prohibited.

GE Power

Page 3: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

3

Today, TWO BILLION PEOPLE

have insufficient or unreliable power.

And MORE THAN A BILLION PEOPLE

don’t have any access to electricity at all.

GE © 2016. All Rights Reserved

Page 4: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

4

Global Trends Transforming the Power Industry

Page 5: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

An Energy Mix Is Required to Meet the World’s Growing Demand

5

Fossil Fuels

Remains 60%+ of industry

and a must to stabilize the grids

Renewables

Fastest growing segment

Emerging Markets

85% of electricity growth,

each country with unique needs

INDUSTRY DYNAMICS

Affordable, reliable and sustainable power

Page 6: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

Global Power Market

6

2015 2025

World electrical generation by fuel(TWh in ‘000s)

Renewables

Nuclear

Oil

Coal

Gas

~31K

~24K

Source: GE Power Marketing

Power generation and

coal generation is

growing globally

5

3

1

5

9

7

3

1

11

7

Page 7: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

US Power Market

7

21.4% 23.3% 23.9% 24.7% 30.3% 27.7% 27.5%32.7% 34.3% 33.3%

Forecast

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

U.S. Electricity Generation by Fuel, All Sectorsthousand megawatthours per day

Coal

Natural gas

Petroleum

Nuclear

Hydropower

Non-hydro

Other sources

Note: Labels show percentage share of total generation provided by coal and natural gas.

Renewables

Power

generation

is stable,

and coal

generation

is shrinking

a lot

Source: Short-Term Energy Outlook, August 2016.

Page 8: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

What Are the Consequences?

8

Coal capacity

dropping

Page 9: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

What Are the Consequences?

9

Coal capacity

dropping

Remaining boilers —

larger, cleaner,

newer

Page 10: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

What Are the Consequences?

10

Coal capacity

dropping

Remaining boilers —

larger, cleaner,

newer

Declining demand,

declining prices

Page 11: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

US Power Market — What Are the Drivers

• Competition for base load

drives efficiency

11

Page 12: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

0

2

4

6

8

10

12

14

16

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

Henry Hub Natural Gas Spot Price (Dollars per Million Btu)

US Power Market — What Are the Drivers

• Competition for base load

drives efficiency

12

• Intermittent nature of

renewables, and gas prices

drives flexibility

Page 13: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

US Power Market — What Are the Drivers

• Competition for base load

drives efficiency

13

• Intermittent nature of

renewables, and gas prices

drives flexibility

• Environmental regulations

drives emissions

Page 14: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

$50BN

Taxi Service

$50BN

Retail to Web Service

$18BN

Consumer App Economy

The world’s largest retailer that owns no stores

The world’s largest taxi company that owns no vehicles

The world’s largest consumer software company only creates a few apps

Industries Re-imagined with Software

14

Page 15: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

Industrial IoT — Inevitability, Not a Probability

15

Page 16: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

By 2020

Energy Is Going Digital

16

Generation T&D Consumption & Micro Gen

Digital Transformation Spending

$225BIndustrial Internet

$90BUtilities

Page 17: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

What Is the Industry Asking For?

Leading Efficiency, Increased Flexibility, Lower Emissions, Better Economics

EMISSIONS COMPLIANCE

PROFITABLE GROWTH

GREATER

RELIABILITY BETTER

PERFORMANCE

17

Page 18: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

Industrial Internet Driving OT/IT Convergence

Physical and

Analytical

Brilliant Machines Industrial Big

Data

People and

Work

18

Page 19: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

Coal Plants Are Big Data Machines

19

Page 20: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

Digital Capabilities

Performance Optimization – FlexiLoad - Fuel Analyser - Boiler Optimization

DIGITAL POWER PLANT FOR STEAM

1.5% Efficiency 5% Unplanned

Downtime3% CO2

Delivering better performance, greater efficiency & improved reliability over the life of the plant

Adding

$50,000,000in NPV

Additional power for more than

~100,000 homesSaving

105,000 tonscoal per year

Equivalent to more than

200,000 carsoff the road

Market Reference: 1,000 MW Double Reheat Plant ChinaGE © 2016. All Rights Reserved

20

Page 21: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

The Winning Equation

21

EFFICIENCY +leading

FLEXIBILITY =increased

1% point efficiency

improvement• + 22MW Power

Output

• +$30 Million NPV

Over Asset Life

• - 67,000 Tons Coal

Consumption

• - 120,000 Tons CO2

Emissions

Per year figures for a 1000 MW plant,

~3,000,000 tons coal consumption

Full plant optimization

Environmental

Compliance

Reduced CO2

Emissions

Better Air Quality

Local Project Support

Better ramping

capabilities

Better load following

EMISSIONS+reduced

ECONOMICS

Lower lifecycle cost

Profitable growth

Improved delivery

time

Access to financing

greater

Increased value through digitization

Page 22: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

Key Takeaways

Coal fired assets data heavy and are prime

targets for digitization

Implementation of digital software solutions in

coal-fired assets has shown:

• Efficiency can be improved by 0.5-1%

• Baseloaded plants can ramp and follow load better

• NOx, SOx, GHG, and CO excursions can be

reduced

22

Page 23: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations

GE © 2016. All Rights Reserved

Questions?

23

Page 24: Digital Solutions to Improve Coal Plant Efficiency ...€¦ · Digital Solutions to Improve Coal Plant Efficiency, Flexibility and Emissions Peter Kirk, Executive, Business Operations