Cogeneration Plants for Industrial Application

Disney

Stefan Linder, Siemens Industrial Turbomachinery, Inc.

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Power Generation 2

Cogeneration for Industrial ApplicationContent

Introduction to SIEMENS Industrial Turbines

Cogeneration Principles

Cogeneration Solutions

Cogeneration Benefits

Market conditions in Mexico

Case Study

Summary

Introduction to Industrial Turbines

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Power Generation 4

Power Generation

AEGKWU AG

20001990198019701960

KWU

IndustrieTurbinen

2003

Industrial Applications

Westinghouse

Mannesmann Demag

DelavalDemagDelaval

Alstom

ABB

GEC AlsthomAlsthom

GEC

BBC

ASEAABB

AlstomPower

I-Segment

AlstomRuston

SIEMENS Power Generation incorporates multiple technologies

Source: CS4

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Power Generation 5

Industrial Turbines

Gas Turbinen(MW)

SGT5-8000HSGT5-4000FSGT6-6000GSGT6-5000FSGT5-3000ESGT6-4000FSGT5-2000ESGT6-3000ESGT6-2000E

SGT-1000FSGT-800SGT-700SGT-600SGT-500SGT-400SGT-300SGT-200SGT-100

121

6845

3025

1713

875

110

163

266198

188

278

185

85

50

500 - 1900

9

SST-9000SST-8000SST-6000SST-5000SST-4000SST-3000SST-2000SST-1000SST-900SST-800SST-700SST-600SST-500SST-400SST-300SST-200SST-100SST-50

Steam Turbines (MW)

1500 U/min

3000 U/min 500 - 1900

150 - 1200130 - 700

bis 240100 - 220

100180

150130

100

65

10

bis 140

3

Broad Product Range

340

July 2006 Acquire of

Kuhnle, Kopp & Kausch ST 45kW5MW

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Power Generation 6

Gas Turbine SGT-100 SGT-200 SGT-300 SGT-400Output (MW) 5,3 6,8 7,9 12,9Efficiency (%) 30,5 31,5 31,1 34,8Pressure Ratio (-) 15,3 12,3 14,0 16,7Mass Flow (kg/s) 20,8 29,3 29,8 39,4Exhaust Temperature (C) 530 466 537 555

Small Industrial Gas Turbines: Output from 5 to 13 MWel

SGT-100

SGT-200

SGT-300

SGT-400

SGT-100 SGT-300

SGT-400SGT-200

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Power Generation 7

Medium Industrial Gas Turbines:Output from17 to 67,5 Mwel

Gas Turbine SGT-500 SGT-600 SGT-700 SGT-800 SGT-1000FOutput (MW) 17,0 24,8 29,1 45,0 67,5Efficiency (%) 32,1 34,2 36,0 37,0 34,8Pressure Ratio (-) 12 14 18 19 15,8Mass Flow (kg/s) 92,3 80,4 91,1 130 192Exhaust Temperature (C) 375 543 518 538 590

SGT-500

SGT-600 SGT-800

SGT-700

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Power Generation 8

Steam Turbines from Grlitz, Finspong, Brno,Taubate and Baroda, Output 2 to 85 MWel

Steam Turbine SST-100 SST-200 SST-300 SST-400 SST-500Output (MW) 2 - 8,5 3 10 10 50 28 - 65 6 - 85

Live Steam Pressure (bar) 65 80 120 120 30 Live Steam Temperature (C) 480 480 520 520 350

SST-100 SST-200 SST-300 SST-400 SST-500

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Power Generation 9

Steam Turbine SST-600 SST-700 SST-800 SST-900Output (MW) 5 100 40 130 50 150 60 - 165

Live Steam Pressure (bar) 140 165 140 140

Live Steam Temp. (C) 540 585 540 540

Steam Turbines from Grlitz and FinspongOutput 5 to165 MWel

SST-600 SST-700 SST-800 SST-900

Cogeneration Principles

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Power Generation 11

Gas Turbine in Simple Cycle

64%

36%

100%Fuel

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Power Generation 12

Gas Turbine in Cogeneration

12% Losses

100% Fuel

36% Electric Power

52% Heat

Waste Heat Recovery

Unit

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Power Generation 13

Gas Turbine in Combined Cyclewith Back Pressure Steam Turbine

Process Industry 35%

15%

50 C

275 C

14%

Gas Turbine

100% Fuel

36%

Boiler

o

o

520 Co

Steam Turbine

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Power Generation 14

Technology Trend in Favour forCogeneration

7070

6060

5050

4040

3030

2020

1010

Thermal efficiency (%)Thermal efficiency (%)

Combined cycleSteam turbine plantGas turbine

1900 1920 1940 1960 1980 2000 20201900 1920 1940 1960 1980 2000 2020

Cogeneration Solutions

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Power Generation 16

Every industrial power plant has to be optimized for the end-user profile

Utilities

Process Industry

Manufacturing Industry

Demand profiles include:

Power and heat requirement

Efficiency in part load, base load, peak load

Total efficiency (power and heat)

Peak load, min load operation (heat and power)

Flexible relation of heat and power generation

Load variations / load rejection

Start-up time and power ramp-up

Emissions (NOx, CO2, etc.)

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Power Generation 17

Typical Industries Suitable for Cogeneration

Cogeneration solutions for

IndustriesChemicals and PetrochemicalsPulp & paperFood & beverageSugarAutomotive MetalworkingMiningCementWood processingTextiles

Power producersUtilitiesIPPsMunicipal CHP

o

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Power Generation 18

Typical Industrial Cogeneration Plant

SIEMENS SGT-300 gas turbine with Heat Recovery Steam Generator, producing power and process steam for a Paper Mill

Electric output 7.9 MW

Process Steam 22t/h

Cogeneration Benefits

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Power Generation 20

Cogeneration Benefits

Reduced Energy CostHigher fuel utilization and efficiencies gives energy savings

Improved Electric Reliability Less instantaneous and prolonged outages plus better power quality

Improved Environmental QualityLower green house gases and NOx emissions

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Power Generation 21

Determining Cogen Potential - Financial Attractiveness -

Electrical and Thermal Load CoincidenceThe more a facility needs electricity at the same time it needs thermal energy,

the more attractive the savings and payback associated with cogen become. Good match will give higher fuel efficiency and quicker payback

Cost Difference Between Electricity and Natural GasThe higher the difference between the cost of buying electricity power from the

grid and the cost of natural gas, the more attractive the savings and payback associate with cogen become. For a favorable payback the spark spread should be at least $12 per MMBtu or USD 0.03 per kWh

Long Hours of OperationCogen plants generally operates when production cost of electricity is lower

than the purchase cost and when the facility is in need of process heat. This time should be minimum 3000 hours annually but preferable more than 6000 hours

Electricity Power Reliability and QualityWhen power reliability/stability is an issue then cogen may make more sense

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Power Generation 22

Cogeneration Barriers

UncertaintiesElectric restructuring creates uncertainty in electricity pricing and reliability plus a wait and see attitudeGas price volatility creates uncertainty in savings and a fear of the unpredictableElectricity utility position Ambivalent at best Hostile at worse

Costs and Paybacks High first cost discourage investment despite energy cost savingsUnder estimated cogen value as avoidance of electric outages and reduced overall emissionsUnfavorable utility tariffs Standby charges Backup rates Exit fees

Installation IssuesPermitting process sometimes may be long, cumbersome and costlyGrid interconnect Inconsistent standards complex process unpredictable / high costs

Market Conditions in Mexico

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Power Generation 24

Mexican Cogeneration Market

Self supply and Cogeneration allowed by law but with restrictionsPower supply reliability in some area is lowCharges for power during peak hours can be 3 times the average ratesRates for back up power are high

Electricity market is not fully deregulated some limitations remainExport of excess/surplus power to the grid possible but limited to 20 MW at unfavorable rates and subjected to dispatchWheeling of power to own needs and partners is possible if no grid constrains exists

Trading of CO2 emissions have begun and will improve the economical benefits with cogeneration, current rates 7-10 USD per ton

Cogeneration Case Study

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Power Generation 26

Plant Assumptions - Reference Case -

Technical Requirements

Average power demand 12.9 MW

(equal to SGT-400 output)

Average process steam demand 16.7 MWth(saturated 25.5 t/h 12 bara)

Base load operation annual 8,760 hours

Economical Assumptions

Average electricity purchase price 6.5 cent/kWh

Average gas fuel purchase price 7.0 USD/MMBtu

Escalation rate per year 3 %

Buying electricity power from a external supplier

Producing process steam inhouse with gas fired boiler

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Power Generation 27

SGT-400 Cogeneration Data- Cogen Case -

Cogen Plant Technical Data

Electric output 12.9 MW

Process steam output 16.7 MWth(saturated 25.5 t/h 12 bara)

Annual operation hours 8,400

Economical Assumptions

Average electricity purchase price 6.5 cent/kWh

Average gas fuel purchase price 7.0 USD/MMBtu

Estimated investment cost $8,800,000

Interest rate 10%

Operation and maintenance cost 5.5 USD/MWh

Generating process steam & power in a cogeneration facility

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Power Generation 28

100 % fuel

1-pressure

HRSG

Gas Turbine

SGT-400 Cogeneration Performance

19%

35 %

Pgt 12.99 MW Pst 0 MW Paux 0.03 MW Pnet 12.96 MW Heat duty 16.81 MJ/s Qfired 36.62 MJ/s Alfa 0.77 --- Net electrical efficiency 35.4 % Net total efficiency 81.4 %

46%

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Power Generation 29

Annual Savings

Financial SummarySimple Payback 2.6 years

Net Present Value (15y) 21.7M$

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Power Generation 30

Summary Industrial Cogeneration

Energy intensive industrial users have begun to build integrated cogeneration solutions, sized after their facility demand

Some industries focus on reliable power supply only by installing reciprocate peaking units, which is only a partial solution, missing the cogeneration benefit

Process energy intensive industries are upgrading their energy plants with cogeneration solutions to benefit from higher fuel utilization factor

Beside demand for high reliability, spark spread between price of electricity and natural gas are justifying investment in industrial cogeneration solutions

Participating in CO2 emissions trading will future more improve the economical benefits with cogeneration and decrease industries energy cost

Thank You !Presented by: Stefan Linder

Gas Turbine Marketing ManagerOffice Phone: +1-281-856-4450Cell Phone: +1-281-787-3475e-mail: stefan.l.linder@siemens.com