COGEN Europe 15th Annual Conference 2009 The future of

COGEN Europe 15th Annual Conference 2009 The future of large cogeneration plants in Europe Stéphane Grée Air Liquide Renaissance Hotel, Brussels – April 22nd, 2009 Agenda Development of Cogeneration in Air Liquide Group Air Liquide references in the Chemical Industry Cogeneration Projects Opportunities Ways to Create Value Steam Turbine Generator to expand “fatal” steam Basin : Botlek (R’dam-NL) Basin : Bayport (TX-USA) Fire non conventional fuels in gas turbine Make flexible and “independent” the power and steam production Fresh air retrofit of existing plants Pergen (R’dam-NL) Conclusion : The future of large cogeneration plants in Europe Air Liquide, the world leader in gases for industry, health and the environment 2 Development of Cogeneration in Air Liquide Group Expanded offer to AL core business clients Efficiency improvement in a sustainable way Tailor made cogeneration plant to satisfy the needs Scale effect aggregating several clients in a basin AL investment allows customers to focus on their core business Natural Gas Natural gas H2 H2 / CO CO Energy Providers Cogen steam AL Industrial Clients air gases Electricity ASU Electricity Air Liquide, the world leader in gases for industry, health and the environment 3 Air Liquide references in the Chemical Industry HUNTSMAN 1997 ENECAL LYONDELL/HUNTSMAN 1995 EUROGEN SHELL 2008 PERGEN RHODIA 1999 COGENAL Belle Etoile Utilités DOW 1999 Saskatchewan SHELL 1999 Scotford LYONDELL/EQUISTAR... 1985 Bayou HUNTSMAN 1993 Port Neches BASF 1999 Geismar SOLVAY 1998 SOLAL INEOS/NAPHTACHIMIE 2000 LAVERA ENERGIES LAVERA UTILITES LYONDELL 1999 FIGENAL SHELL 2001 Geismar Air Liquide, the world leader in gases for industry, health and the environment 4 Cogeneration Projects Opportunities New Investment New requirement / Debottlenecking Replacement of obsolete equipment Low Efficiency – High Cost of Production Steam let down / Steam vent Large boilers operating at low steam loads Obsolete technologies with poor efficiency Flaring of excess process gases High cost of grid power Emission Compliance Implementation of new environmental regulations CO2 emission reduction target Subsidies mechanism Poor Reliability or Flexibility Weak Grid supply Base load power production associated to a stable steam demand Air Liquide, the world leader in gases for industry, health and the environment 5 Ways to Create Value Implement Steam Turbine Generator Replace steam static let down Design with higher steam pressure/temperature than the needs Expand “fatal” steam (e.g. from Steam Methane Reformer) Combine steam hosts to create a larger steam network Scale and efficiency effect Stranded assets available at one site to serve another customer (shared back-up) Comply with new emissions regulations Gasification of waste liquid fuels and syngas cogeneration Fire non conventional fuels in gas turbine or duct burner Natural gas cogeneration to replace Heavy Fuel Oil Boilers Flexibilize steam and power production Follow power market and steam demand by changing cogeneration plant load Make as much as possible independent the production of steam and power Air Liquide, the world leader in gases for industry, health and the environment 6 Steam Turbine Generator to expand “fatal” steam Co-production of electricity in a SMR plant : Design with higher steam temperature Implement back-pressure steam turbine down to LP steam export Implement condensing steam turbine to expand further steam not taken by steam client Better valorization of “fatal” steam : Avoid static let down Avoid steam vent CO2 saving : Case 100% LP steam export 6.2 gCO2/Nm3H2 Case 50% LP steam export 29.2 gCO2/Nm3H2 Air Liquide, the world leader in gases for industry, health and the environment 7 Basin : Botlek (R’dam-NL) Multi-products plant located in the center of the Port of Rotterdam Possible extension of steam network to other customers Difficulty due to crowded pipe ways and safety of steam transportation on public area Power: 3 x GE 6B Gas Turbines, 40 MWe each Steam: 3 x HRSGs 135t/h 75barg capacity 1 condensate treatment unit 2 demineralized water units Customers: serving 2 steam&power clients, 1 power grid off-taker in the basin Steam (HP, MP), more than 1.6km P/L Electricity Industrial gases : Syngas, H2, CO Connected to the AL northern Europe H2 pipeline Air Liquide, the world leader in gases for industry, health and the environment 8 Basin : Bayport (TX-USA) Power: 4 x GE 7E Gas Turbines, 62 MWe each Steam: 4 x HRSGs, 3 x boilers 2.7 mmlb/h 800 psig capacity Treated Water: 15 million GPD Demin Water : 4.8 million GPD Customers: serving 35 in the basin Steam (HP, LP), more than 3 miles P/L Industrial gases O2, N2, H2 Demin water Industrial water Electricity Cogeneration plant commissioned in 1985 Gas turbines approach end of life time Huge refurbishment costs ? Replacement ? Air Liquide, the world leader in gases for industry, health and the environment 9 Fire non conventional fuels in gas turbine IGCC like : Convert refinery liquid waste fuels into synthetic gas for producing steam and power in a cogeneration instead of conventional power plant Fire Refinery Fuel Gas in DLN gas turbine Refinery fuel gas contains H2 and olefins which have been hardly allowed in DLN gas turbine so far A new generation of DLN gas turbine is or will soon be able to burn such fuel Advantages : • Get rid of waste fuel gases instead of flaring • To get steam and power with excess non costly fuels • Low emissions • • NOx kept in the same order of magnitude than with natural gas fuel CO2 emissions similar to natural gas : CO2 from olefins combustion is balanced by H2 Natural gas cogeneration to replace Heavy Fuel Oil Boilers Air Liquide, the world leader in gases for industry, health and the environment 10 Make flexible and “independent” the power and steam production The industrial cogeneration which mainly sells electricity to the grid must adapt its production to the power market volatility Steam consumption While producing stable steam flow 700 And vice versa 650 Steam flow (t/h) 600 550 500 450 400 350 janv.-07 févr.-07 avr.-07 mai-07 juil.-07 sept.-07 oct.-07 déc.-07 Air Liquide, the world leader in gases for industry, health and the environment 11 Make flexible and “independent” the power and steam production Cogeneration plant operation Operation time : • Peak/offpeak : • Ideal match with power market • Need of auxiliary steam production • Week/weekend : • Good match with power market but offpeak night time to be compensated • Need of auxiliary steam production during weekend • Winter : • Play with power load to match with power market • Need of auxiliary steam production during summer • Year : • Play with power load to match with power market • Need of auxiliary steam production during summer Power load : • Start/stop : • Gas turbine : increased maintenance costs, reduced lifetime • HRSG : reduced lifetime, continuous steam supply requires auxiliary boiler • To compensate start-up costs • Partial to base load • Increased NOx emissions, reduced efficiency • Base load Air Liquide, the world leader in gases for industry, health and the environment 12 Fresh air retrofit of existing plants Existing cogeneration plants can be retrofitted to fresh air firing and flue gas recirculation : Allows continue making steam while gas turbine is stopped or has decreased load for following power market Fresh air retrofit + flue gas recirculation GT outlet GT outlet Air Liquide, the world leader in gases for industry, health and the environment 13 Pergen (R’dam-NL) : Innovative concept, high efficiency Power: 2 x GE 9E Gas Turbines, 130 MWe each Steam: 4 x split boilers, 800 t/h 85 barg capacity Back-pressure turbines : 55 MWe capacity Demin Water Unit : 1400 m3/h capacity Steam customer : Steam (HP, MP, LP) : 520 t/h Electricity : 30 MWe Demin water : 800 m3/h Compressed air, hot water Waste heat recovery Grid customer : 250 MWe 86% net efficiency Start-up 2008 Air Liquide, the world leader in gases for industry, health and the environment 14 Pergen (R’dam-NL) : Flexibility, reliability Flexible concept Fresh air and flying take over (FTO) Gas turbines runs between 60 and 100%load to match power market needs Flue gas recirculation : • Reduction of NOx emissions in Fresh air mode • Keep steam capacity at gas turbine part load 4 HRSG’s : steam reliability Air Liquide, the world leader in gases for industry, health and the environment 15 Pergen (R’dam-NL) : Low emissions The emission situation in the Netherlands led to the “emission reduction plan”, which engaged industrial actors into emissionreduction measures Current Equivalent Situation High Sulphur Residues fired Boilers of 560tph HP steam Equivalent Dutch fossil fuelled power plant of 243MWe 275 t/y 982 t/y 1066 kt/y Total Pergen Total SO2 NO2 CO2 8226 t/y 2745 t/y 1413 kt/y 8501 t/y 3727 t/y 2479 kt/y 0 t/y 852 t/y 1561 kt/y NO2 concentration, source: ESA Air Liquide, the world leader in gases for industry, health and the environment 16 CONCLUSION : The future of large cogeneration plants in Europe New and Existing Cogeneration plants must be characterized by : High Flexibility High Efficiency Low Emissions If necessary, existing cogeneration plants must be retrofitted to cope with above mentioned characteristics They should receive at least the same CO2 allocations than equivalent production plant : Industrial fired boilers Combined cycle power plant Current economic crisis is an opportunity for the development of cogeneration in Europe : Reduced investment costs Reduced equipment fabrication time Requirement for energy savings for a better competitiveness vs developing countries Air Liquide, the world leader in gases for industry, health and the environment 17 COGEN Europe 15th Annual Conference 2009 THANK YOU FOR YOUR ATTENTION Air Liquide, the world leader in gases for industry, health and the environment 18