Electricity Generation from Lignite

Great River EnergyJohn WeedaDirector ND Plant Operations

The many forms of energy

• Generating electricity requires energy conversion

Electrical power generation

• Energy conversion requires energy transfer

STEAM

Our triple bottom line…

Affordable rates Reliable electric service Environmental stewardship

Types of Generation

• Baseload power is available for 24-7 demand– High-capacity generating plants– Plants cost less to operate when at full efficiency

• Intermediate power plants cycle with demand– Operate between 12-16 hours a day when demand for electricity

is highest, shut down evenings/weekends• Peaking power is available when demand is highest

– Higher cost to operate, but quick start-up to react to demand changes

• Intermittent power is available when supply allows– Cannot be relied upon to react to level of demand

To pushbladeson a shaft

Which spinsa magnetinside a

coil of wire

ProducingElectricity!

A sourceof energysuch aslignite

Basics of How Electricity is Made

What InfluencesGeneration Choice

• Capital costs• Operations, maintenance costs• How soon the resource is needed

– How quickly it can be built• Capacity factors• Load shape• Existing generation

mix• Permitting

Advantages No fuel cost Low-cost energy to consumer No air emissions Can respond rapidly to dispatch

Disadvantages Affects fish and wildlife habitat Alters the natural flow of rivers Virtually no resources left to develop

(some dams being removed) Montana’s Yellowtail Dam finished in 1967

Hydro

Advantages Less emissions than coal

Currently, natural gas is low-priced

Can be either designed for intermediate or peaking service

Moderate capital costs

Can be designed for dispatch

Natural Gas

Disadvantages Costs have been historically volatile

Pipeline distribution not adequate for projected demand

Advantages Renewable

No air emissions

Disadvantages Has intermittent production

Turbines take a lotof space

Equipment aesthetically unpleasing to some and kills birds

Because of intermittent nature, requires back-up generation sources

Poor match for load demand

Wind

Wind and solar infeed vs. load in Germany

Wind and solar infeed vs. load in Germany

Solar Advantages

Renewable

No air emissions

Disadvantages Expensive

Intermittent production

Affected by clouds, snow and season

Steep decline in generation during peak demand time of day

Grid delivers balancing resource

Grid provides startup power

CAISO Net Load 2012-2020

Advantages Abundant fuel source Relatively inexpensive fuel

source for base load Reliable and dispatchable Increasingly clean

Disadvantages Low Btu content High moisture content Cannot economically rail New federal emissions

regulations cause uncertainty Ramp rate is limited for

increase or decrease in demand

Lignite

Nuclear Advantages

No CO2 emissions

Relatively low-cost fuel

Base load reliability

Disadvantages Large capital cost

Radioactive waste

Almost impossible to solve waste disposal problems through Congress

Cannot respond effectively to changing dispatch

This Region Depends On Coal-Based Electricity

Coal must remain a part of America’s future

New technology is required

Time is important

Sharing of risk Federal

Industry

Importance of Coal-Based Electricity

Affordable, reliable electricity is important to families and businesses Important for low-income families Important competitive factor for region’s

farms & businesses Important economic development incentive

0

200

400

600

800

1000

1200

3986 MW Total

MW

Ca

pa

cit

y

1,100

900

673650

420

10044

Lewis &Clark

Heskett Coyote LelandOlds

Young AntelopeValley

CoalCreek

Sources of Electricity from Lignite

99

Spiritwood

How is Lignite Converted into Electricity?

GRE Power Plants

Emissions ControlEquipment

Hot Air Boiler

Water Condenser

SteamTurbine

Steam

Generator

PulverizedCoal

How Electricity is MadeUsing a Steam Turbine

Bunker

BurnersCoalFeeder

Pulverizer

LiftLine

Lignite-Fired Boiler

Photo of pulverized coal

Photo of oilduring startup

2,4002,400PoundsPounds

2,400 poundsper square inch

2,400 PSI Steam Pressure

Steam turbine generator

Generator during assembly

Generator stator work

Modern control room with computer equipment

• Plant TransformersA. Auxiliary transformers for plant

powerS. Step-Up transformers for sending

power out

Power Plant Substation

100

ND Power Plants Have State of the Art Environmental Controls

More than $800 million has been invested by Basin Electric and Minnkota to retrofit Young 1 and LOS 1 & 2 with scrubbers – now 98% of ND generation is equipped with scrubbers

Heat & PowerEfficiency Improvements

Coal Creek Station sends a mix of primary & waste steam to Blue Flint Ethanol Plant is low-cost producer of ethanol in the

United States (no need to build or maintain a boiler)

Spiritwood Station is a combined heat & power plant located near Jamestown, ND Generates electricity & steam for Cargill Malt

and Dakota Spirit AgEnergy Biorefinery When fully utilized, plant will be 66 percent

efficient Compared to 30 to 35 percent efficient for most

coal-based power plants

Video

Spiritwood Coal Creek ND Median ND Max Proposed limit new

plant

0

500

1000

1500

2000

2500

3000

Carbon Intensity in lbs. CO2/MWh

GRE’s Coal Plants – Lowest ND CO2

2,226 6% improvement in carbon intensity from 2012 as proposed in EPA 111d regulation for ND plants

Capacity Requirement =2 KW per person

650,000 persons X 2 KW per person= 1,300,000 KW or 1,300 MW

North DakotaNorth Dakota

A Rule of Thumb

• Bismarck / Mandan - 190 MW

• Fargo / Moorhead - 350 MW

• St. Cloud - 335 MW

• Minneapolis / St. Paul Area - 3,500 MW

Estimated Demand

About one-fifth of MN’s electricity comes from ND -- the percentage is much higher in rural MNAbout one-fifth of MN’s electricity comes from ND -- the percentage is much higher in rural MN

Summary

Lignite is a low-cost, abundant resource for the generation of electricity that is beneficial for the region

Lignite is a secure and reliable source of energy

Lignite-based power plants are in compliance with all federal ambient air quality standards

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