GE Energy Delivering the IGCC Solution Daniel Tse June 29, 2006 Delivering the IGCC Solution Today’s Topics • • • • • • Market Outlook Why IGCC Gasification Experience Process Overview GE and Bechtel’s IGCC Alliance* Reference.
Download ReportTranscript GE Energy Delivering the IGCC Solution Daniel Tse June 29, 2006 Delivering the IGCC Solution Today’s Topics • • • • • • Market Outlook Why IGCC Gasification Experience Process Overview GE and Bechtel’s IGCC Alliance* Reference.
GE Energy Delivering the IGCC Solution Daniel Tse June 29, 2006 Delivering the IGCC Solution Today’s Topics • • • • • • Market Outlook Why IGCC Gasification Experience Process Overview GE and Bechtel’s IGCC Alliance* Reference Plant Discussions *Any reference to the “GE and Bechtel IGCC Alliance”, “GE and Bechtel’s IGCC Alliance”, or the “IGCC Alliance” is a reference to the business arrangement established between the General Electric Company, by and through its GE Energy business, and Bechtel Corporation pursuant to the terms of the Alliance Agreement entered into between the parties, and does not signify a joint venture, partnership or any separate legal entity. 2 / GE / June 2006 Why Coal? • High/volatile natural gas prices • Availability of natural gas/LNG • Global Recoverable Reserves – Oil 40 yrs, NG 70 yrs, Coal 192 yrs • Need for fuel diversity • Energy security/independence concerns GW 200 >25% of World Power Generation Additions 150 100 50 0 ‘96 ‘00 Coal Coal ‘04 ‘08 ‘12 The US’ most plentiful resource… 2004 US Total: 3,971 TWhr ~80 Proposed coal plants – 50 GW Source: GE power generation vertical forecast Coal 49.8% Source: EIA: Electric Report Annual Report, 2005 3 / GE / June 2006 Why Not Consider IGCC? • Established technologies • Fuel flexibility • Addresses environmental issues 4 / GE / June 2006 IGCC Commercialization Coolwater Prototype 120MW Commercial Demos Polk, Wabash 250MW 1984 The IGCC Puzzle • CAPEX too high (+25%) • COE too high (+10%) • No system guarantees or warrantees – only license • Poor Initial RAM 1995 Reference Plant Design Complete 630MW 2006 The Solution The Solution • GE gasification technology acquisition • GE and Bechtel IGCC Alliance • Turnkey, single source 630MW reference plant offering with guarantees & warranties • Rigorous new product development programs including low rank coals 5 / GE / June 2006 GE’s IGCC Technology … A Complete Package Gasification Technology Power Generation Technology Commercial experience leader Proven process design expertise Guaranteed product performance Manufacturing excellence Power block equipment design Technology development process + Optimized System Integration IGCC Technology Full plant system integration Optimization of plant systems Integrated plant controls Overall optimization from feedstock to plant output 6 / GE / June 2006 Decades of Experience Current/Future Operating Gasification Plants Startup Dates 1950 1960 1990 2000 Solid Liquid Plants in Progress > 3 GW GE IGCC Exper ience Pilot 2010 2004 Montebello Test Facility Operations 1946 Gas 1980 1970 120MW IGCC Technical Demo Cool Water 250MW IGCC Commercial Demo TECO/Polk Power Dem o Com m ercia l 900sTPD (China) Coal to Am m onia / Urea 1 ,1 3 2 1 ,1 2 0 2000sTPD / 250MW (USA) Coal to Pow er (M W s) 1650sTPD (China) Coal to Am m onia / Urea Hua ina n TECO/ Polk W eihe 760 1800sTPD (China) Coal to Tow n Gas / Methanol Experience with Coal Luna n SAR UBE Cool W a ter Sy n g a s Po w er Ea stm a n Sy n g a s & Po w er TVA 25sTPD plant at Montebello USA research lab RAG/ RCH Sha ngha i 550sTPD (China) Coal to Am m onia 800sTPD (W . Germ an) Coal to Oxo-chem / H 2 1650sTPD (Japan) Coal and Petroleum Coke to Am m onia 1000sTPD / 120MW (USA) Coal to Pow er 1100sTPD (USA) Coal to Methanol / Acetic Anhy dride 190sTPD (USA) Coal to Am m onia 165sTPD (W . Germ an) Coal to Oxo-chem icals 7 / GE / June 2006 GE’s IGCC Technology & Experience Leadership • Gasification leader since 1948 with 60+ facilities operating worldwide • First coal gasification plant in 1978 • 21 gas turbines operating on synthesis gas, 900,000 operating hours GE’s Gasification Experience 2X Advantage on All Fuels >10X Advantage on Solid Fuels 60+ • IGCC leader: >3 GW with GE technologies GE Company A Company B 26 14 1 1 1 # Gasification Plants # Gasification Plants per Company per Company Company A and B data from Gasification Technologies Council Gasification Database – 09/05 8 / GE / June 2006 GE’s Integrated Gasification Combined Cycle Five Basic Steps CO2 Coal Gasification Syngas Clean-up Cooling Sulfur Mercury Slag Air Heat O2 Air Separation System Air/N2 Combined Cycle System Cleaned Fuel Electricity Key GE Technologies Oxidant Supply Gasification Clean Up Power Island System Integration 9 / GE / June 2006 Carbon Removal … A Proven Process Oxygen, Feedstock Water Gas Shift CO+H2O -> CO2+H2 Process Gas Only High P, Low Volume High Driving Force Gasification Optional Shift AGR / SRU Hg Slag Proven Gasification Power S CO2 Proven Process Technology • 60+ GE-licensed • 25+ GE-licensed gasification units gasification units operating operating worldwide worldwide using shift reaction to • 14 with solid produce H2 feedstock • 8 with solid feedstock H2 Diffusion Combustor Diluent NOX Control • 25+ GE-licensed units operating worldwide using AGR technology to completely remove CO2 from shifted syngas • 8 with solid feedstock Proven Turbine Capability • 25 GE gas turbines operating at 50%+ H2 • F-class combustion validation up to 90% H2 10 / GE / June 2006 IGCC - Cleaner By Design Pollution Prevention vs. Pollution Control WESP Carbon Injection Boiler SCR ESP/ FF FF FGD Pre-Combustion PM, Hg, S, X… High Temperature, High Pressure, Reducing Conditions CaHbNcSdXe + H2O + O2 -> CO, H2 +CO2, H2O, N2, H2S Ash & Minerals -> Vitrified Slag (non-leachable) Sulfur Compounds-> Elemental Sulfur (Valuable Byproduct) Mercury -> >90+% Removal Rate Gas Cleanup at High Partial Pressure, Low Volume 11 / GE / June 2006 IGCC Reference Plant…Key Requirements • Develop coal-to-power IGCC reference plant design • Output capacity sized for segment requirements • Leverage GE & Bechtel’s extensive IGCC experience • Reduce capital cost • Improve availability – RAM focus • Design for superior environmental performance • NOX, SO2, PM10, Hg, less H2O consumption • Provide fuel flexibility • Coal & Coal/Petcoke Blends • CO2 capture capability • Competitive COE to SCPC 12 / GE / June 2006 GE and Bechtel’s IGCC Alliance Reference Plant Coal Handling Coal Delivery Nitrogen Coal Grinding 207FB Combined Cycle ASU Slurry Oxygen Gasification And Syngas Coolers Optimized System Integration Cleaned Syngas Washed Syngas Low Temp. Cooled Syngas Gas Cooling Acid Gas Removal Acid Gas Slag Fines Handling Fines Slag/Fine Offloading Switchyard Make-up Water Treatment Blowdown Sulfur Recovery Product-Site Interface Wastewater Treatment Sulfur Make-up Water Delivery Sulfur By-product Handling 13 / GE / June 2006 GE and Bechtel IGCC Alliance • Alliance with Bechtel for 207FB 630 MW solid fuel IGCC Plant • GE: product design, development, system integration, combined cycle system & key gasification components • Bechtel: engineering, procurement & construction (EPC), bulk materials • Single point responsibility for firm price, schedule, performance & emission guarantees • Focused on capital cost, efficiency & reliability……lowering COE 14 / GE / June 2006 IGCC Reference Plant Reference Plant Design Basis • Two 7FB GTs + 1 ST CC system - SCRs included • Two gasification trains • Base load/Load following operation • Turndown to ~50% load (2 gasif. opr.) • Fuel flexibility – Wide range of bituminous coals – Nominal 4% sulfur, 14% ash, 2,500 ppm chlorides – Up to 30% coke blends w/ coal • Natural gas or distillate backup fuel • Allows for addition of future CO2 capture equipment Reference Plant Performance • Nominal 630MW net plant output, • 5ppmv NOX w/SCR, 15 ppmv w/o SCR • Availability target ~85% on syngas Reference Plant Options • Up to 70% coke blends w/ coal • Higher sulfur/Chlorides feedstock • Zero liquid discharge • Spare gasifier train 15 / GE / June 2006 IGCC: Emissions Approaching Natural Gas 0.16 PM10 SO2 NOX Lb/MMBTU 0.15 0.10 0.05 Average Recent Permit Data 0.09 0.04 0.03 Best Individual Plant 0.017 0.00 0.02 0.01 0.01 0.01 0.01 0.002 Hg % Captured 90%+ 50%-90% PC IGCC Hg 30-40% Less NGCC Advanced IGCC Source: GE internal data, average of 30 permits PC/SCPC granted, applications and publicly reported emissions IGCC Environmental Benefits Versus Supercritical Pulverized Coal • 33% less NOX • 75% less SOX • 40% less PM10 • 90% + Hg removal • 30% less water • CO2 capture ready PC IGCC Water Usage 1,861 1,822 lb/MWh 40% Efficiency PC IGCC CO2 Emissions 16 / GE / June 2006 IGCC & SCPC…Benchmarking Capital Cost • IGCC alliance benchmarked SCPC price for Ohio River Valley 1Q/05 • Greenfield 600 MW SCPC ~1,400 to 1,460 $/kW ORV • IGCC/SCPC Brownfield savings vary ~150 to 250 $/kW • IGCC capital cost premium has been ~ 20-25% 1 x 600 MW SCPC Greenfield - $1,450/kW Brownfield - $1,225/kW EPC Cost Index, $/kW 1,800 1,600 Greenfield Projects 1,400 1,200 Greenfield Projects Brownfield Projects 1,000 800 500 600 700 800 900 Nominal Plant Capacity, MW 1st Quarter 2005 – Ohio River Valley Cost Estimate Basis 17 / GE / / June17 2006 Reducing the Capital Cost of IGCC • Launch target to cut IGCC CAPEX premium by 50% • Optimizing power generation and gasification integration • Incorporating lessons for operability and lower cost • Establishing supply chain relationships Total installed cost (TIC) of IGCC Increased Output System Optimization Schedule/ Materials SCPC – TIC $/kW Reference plant target reduces IGCC premium by 50% Alliance on IGCC track to deliver IGCC launch product savings ~ ~ Conventional IGCC 20-25% premium $/kW Reference Plant Target 18 / GE / June 2006 IGCC Cost of Electricity Versus Supercritical • Plant output: 600 MW Pulverized Coal • SCPC price: $1,450/kW (Greenfield) Cost of Electricity, ¢/kWh 8.29 8 7 CO2 PRB PRB 5.21 SCPC 4 IGCC 10% CAPEX premium First year cost of electricity in 2005 Fuel: IL #6 price $1.75/MMBtu Availability (SCPC 90%, IGCC 85%) Emissions: $3,500/ton NOX, $750/ton SO2 6.90 CO2 6 5 • • • • • 5.64 5.66 SCPC IGCC SCPC SCPC Base NOX/SO2 Hg Total IGCC Cost for CO2 capture – DOE/EPRI Report 1000316, 12/2000 GE internal data 19 / GE / June 2006 GE and Bechtel IGCC Alliance’s Reference Plant True Single Point Responsibility Customer IGCC Project Contract Scope • EPC Firm Price w/ Guaranteed: – Schedule – Output GE Lead GE/Bechtel Project Consortium Turnkey EPC Contract GE Energy Bechtel Power – Heat Rate – Air Emissions • Minimizes Owner Risk • Facilitates Project Financing 20 / GE / June 2006 GE’s Commitment to Success Staffing For Growth Product Development Budget ~200+ $40Y (est.) ~117 $20Y $15Y ~50 $Y Avg/yr ‘05 ‘01–‘04 ‘06 ‘07 Jun 04 Sep 05 Jan 06 Dec 06 Gasification Programs • High Efficiency Sulfur Removal • Syngas Cooler Advanced Design • Advanced Quench Ring • Advanced Feed Injectors • Advanced Refractory • Low Rank Coal Design 21 / GE / June 2006 GE’s Global Gasification Resources Houston, TX – Process design & industry experience Niskayuna, NY – Materials, design, system analysis Schenectady, NY – Engineering & project mgmt Shanghai, China – Materials, chemistry, instrumentation Bangalore, India – Computational analysis Greenville, SC – Design, test & manufacture Irvine, CA – Gasification modeling 22 / GE / June 2006 IGCC Launch Plant Status Gary Fort Wayne Cleveland INDIANA OHIO Indianapolis Columbus Cincinnati Meigs County, Ohio AEP IGCC Project Edwardsport, Indiana Duke IGCC Project • 2Q‘05 completed IGCC feasibility study • 2Q‘05 completed IGCC feasibility study • 9/05 announced FEED study • 03/06 announced FEED study • 3Q06 FEED to be complete • 1Q07 FEED to be complete • 2010 expected commercial start up* • 2011 expected commercial start up* *pending project approval 23 / GE / June 2006 IGCC Reference Plant Project Phases Site Study Indicative FEED Front-end engineering Price Performance Schedule EPC terms Perf. Guarantees Firm EPC Phase Price Performance Schedule EPC Contract Perf. Guarantees Start-up & Operation Deliver Availability Technical Support Large IB Feedback Alliance Commitment Performance 24 / GE / / June24 2006 Why IGCC Makes Sense • Proven technology - commercial operation today • Fuel flexibility – lower cost fuels than natural gas • Better emissions performance than pulverized coal – current & future • Comparable COE – at launch • Energy security – domestic coal supplies • Public acceptance – competitive cleaner coal alternative 25 / GE / June 2006 Gasification – Multiple Cleaner Coal Solutions Greenfield Polygen Refueling Site Repowering Electricity (IGCC) Hydrogen Refineries Syngas Power (H2 + CO) Gasification Technology Steam Chemicals Coal to Liquids Formaldehyde MTBE Methanol Acetic acid Amine DME Urea Ammonia Ammonia nitrate/sulfate Oxochemicals: Butanol, Ethylhexanol Cleaner Diesel 26 / GE / June 2006 GE Energy Delivering the IGCC Solution Daniel Tse June 29, 2006