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Carbon Emission Avoidance
Copyright © 2016 by Gap Engineering All rights reserved. TM
Decreasing Carbon Emmission while Increasing Efficiency
Meeting Carbon Emission Requirements While Increasing Profitability Can emissions compliance
yield a return on investment?
2 Gap Engineering
Rising demand for affordable electricity combined with
global climate change concerns and a tight capital market
presents power generators with a daunting challenge -
How to maintain generation capacity while reducing
carbon emissions and minimizing the significant capital
outlay represented by new generation construction?
Significantly improving existing coal-fired power plant
performance is one answer to addressing these
challenges.
1% efficiency improvement at thermal plants reduces
CO2 emissions 2-3%. For example this 1% improvement
would allow cost avoidance of one 5 Megawatt wind
turbine for a 500 Megawatt plant.
Copyright © 2016 by Gap Engineering All rights reserved. TM
4
All power generation technologies are
subject to the economics of their
construction, operation and
maintenance, fuel, and lifecycle and
replacement costs as well as the
uncertainties and inequities associated
with government regulations and
subsidies. Regulated or not,
generators must remain competitive in
order to be viable in the long-term.
Consequently, alterations to plant
assets and operations should yield a
return on investment regardless of the
ever changing economic and political
environments.
The introduction of the Clean Power
Plan further challenges the economic
viability of coal-fired power plants
because of the high cost of carbon
capture and sequestration. While
many view the solution to meeting the
Clean Power Plan’s emissions targets
as the shutdown and replacement of
the least efficient coal-fired power
plants with renewable electric
generation, there exists an alternative
that both reduces emissions and
improves utility economics.
Simply put, improve coal-fired
power plant performance so as to
not burn the coal or coke in the first
place.
Can emissions compliance yield a
return on investment?
Carbon Emission Avoidance
Copyright © 2016 by Gap Engineering All rights reserved. TM
The Clean Power Plan and Today’s
Coal-fired Power Plants
The Environmental Protection Agency (EPA) issued the Clean Power Plan
that, while currently stayed by the United States Supreme Court, proposes
significantly lower carbon emissions targets for coal-fired power plants.
This proposed rule requires the electric generating industry to reduce
carbon dioxide emissions by 32 percent below 2005 levels by 2030. To
achieve this goal, the EPA specified carbon emissions goals for each state
and identified four “building blocks” to make the required carbon emission
reductions:
improving power plant heat rates
using less carbon intensive electric generating units
deploying more low- or zero-carbon emitting generation
increasing demand-side energy efficiency
States must submit their plans to meet the proposed target by June 2018
or apply for an extension.
Coal-fired power plants account for 42 percent of America’s electric power generation and a sizable portion of many utilities’ asset portfolio. These plants, however, do not typically meet the aggressive emissions target set forth in the Clean Power Plan. Retrofitting these facilities with the required carbon capture and sequestration technologies is likely to be too costly an investment for most electric producers.
1,2,3,4 Thus, coal-fired power plant
operators must find other means of reducing their carbon emissions or risk premature decommissioning of these assets.
5 Gap Engineering
1. Cost-Benefit Analysis of Flexibility Retrofits for Coal and Gas-Fueled Power Plants, National Renewable Energy Laboratory, U.S. Department of Energy, December 2013
2. CCS Retrofit: Analysis of the Global Installed Power Plant Fleet, International Energy Agency, 2012
3. Carbon Capture Technology Options and Costs, Jared Ciferno, National Energy Technology Laboratory, U.S. Department of Energy, September 2008
4. Retrofitting Carbon Capture Systems on Existing Coal-fired Power Plants, L.D. Carter, American Public Power Association, December 2007
Copyright © 2016 by Gap Engineering All rights reserved. TM
6
Carbon Avoidance, the Alternative to Capture
and Sequestration for Existing Plants
The Clean Power Plan fails to address a proven, economic solution for
reducing carbon emissions – carbon emission avoidance.
Carbon emission avoidance represents a collection of operational approaches that effectively reduce the amount of fuel required to generate a megawatt of electric power. Consequently, all emissions – CO2, NOx, SO2, particulate matter, mercury, lead, heavy metals, CO, hydrocarbons, and arsenic – are reduced while simultaneously lowering overall fuel costs and avoiding carbon capture and sequestration efficiency penalties.
Source: Can Future Coal Power Plants Meet CO2 Emission Standards Without Carbon Capture and Storage?, EPRI, October 2015
Coal Technology CO2 Emissions Kg/MWh (Gross)
Typical Existing Coal Plant 1100
Advanced Utrasupercritical (USC) Steam Plant 750
2030 Clean Air Act Limit For Old Plants 726
Integrated Gasification Combined Cycle Plant 700
Advanced USC Plant + 12.5% Steam Utilization 636
EPA Standard for New Construction Coal Plants 636
USC Plant + 14.5% Steam Utilization 636
IGCC Plant + High Quality Coal 627
Integrated Gasification Supercritical Brayton Cycle Plant 603
Integrated Gasification Fuel Cell (IGFC) Plant 603
Advanced USC Plant + 25% Steam Utilization 568
IGCC Plant + 1700oC Combustion Turbine 567
Integrated Gasification Triple Cycle Plant 527
IGFC Plant + Catalyst Gasifier 501
IGFC Plant + Pressurized Solid Oxide Fuel Cell (SOFC) 498
Advanced USC Plant + 50% Steam Utilization 465
IGFC Plant + Catalyst Gasifier + Pressurized SOFC 430
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Carbon Emission Avoidance
7 Gap Engineering
Practical experience shows that
implementation of carbon emission
avoidance initiatives can enable
existing coal-fired power plants to meet
Clean Power Plan standards. This is
accomplished through a series of
projects that improve the energy
efficiency of coal-fired facilities.
Quick Win Energy Efficiency
Gains
Megawatt Recovery Program: Identify
and repair sources of energy loss
within the plant such as steam leaks.
Boiler Pressure Control Optimization:
Tune system controllers to maintain
constant boiler pressure and megawatt
loading thereby optimizing overall
system performance.
Soot Blower Cycle Optimization:
Enhance the soot blower control
system to eliminate unnecessary run-
time and heat loss.
Plant Efficiency Modifications
Soot Blower Steam Relocation: Move
the soot blower steam downstream to a
lower pressure source in order to save
energy.
Heat Integration: Heighten intersystem
heat integration to fully optimize heat
recovery and minimize emitted waste.
Fuel Treatment
Water Removal: Implement measures
to limit water impregnation and/or
evaporate absorbed water using heat
integration methods to improve overall
fuel efficiency.
Typical Coal-fired Power
Plant Emissions
A typical, uncontrolled coal-fired power plant generates the following undesirable emissions per year:
3.5 million tons of CO2
14,100 tons of SO2
10,300 tons of NOx
500 tons of particulate matter
170 pounds of mercury
114 pounds of lead
4 pounds of cadmium
720 tons of CO
220 tons of hydrocarbons
225 pounds of arsenic
Implementing carbon emission avoidance
mechanisms proportionally reduces these
emissions.
Source: Environmental impacts of coal power: air pollution, Union of
Concerned Scientists, 2011
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Coal / Coke Analysis and Blending:
Adjust fuel transport mechanisms to
better homogenize or ‘smooth’ BTU
rating changes thereby improving
boiler control and overall cycle
efficiency.
Coal / Coke Treatment: Apply
compounds to the coal / coke so to
limit material buildup on the boiler
tubes thereby improving overall heat
transfer.
Some coal-fired power plants have
implemented one or more of these
carbon emission avoidance
mechanisms and the best have
implemented several. Given the era in
which most coal-fired plants were built,
these mechanisms weren’t
implemented because this degree of
energy conservation and emission
reduction were simply not required.
Prior to electric deregulation, plants
focused mainly on increasing revenue.
Consequently, there exists tremendous
efficiency improvement opportunities at
most coal- and coke-fired plants;
leading to greatly improved bottom line
economies and compliance with the
Clean Power Plan’s 2030 emission
targets. The following table reveals the
commonly achievable economic and
carbon emission reduction benefits
attainable through implementation of
the recommended avoidance
initiatives.
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Carbon Emission Avoidance
Mechanisms
% CO2
reduction
Capital
Cost
Yearly
Benefit
Quick Win Energy Efficiency Gains
Megawatt Recovery Program 0 – 5% $500,000 $1,500,000
Boiler Pressure Control Optimization 1 – 3% $100,000 $1,000,000
Plant Efficiency Modifications
Soot Blower Cycle Optimization and Steam
Relocation 1 – 2% $100,000 $200,000
Heat Integration 3 – 10% $1,500,000 $3,000,000
Fuel Treatment
Water Removal 5 – 15% $10,000,000 $14,450,000
Coal / Coke Analysis and Blending 1 – 5% $250,000 $1,000,000
Coal / Coke Treatment 1 – 3% $300,000 $300,000
Copyright © 2016 by Gap Engineering All rights reserved. TM
Carbon Emission Avoidance
Case Study
Situation Gap Engineering Process Control Engineers supported optimization of a diversified utility’s 615 MWe coke-fired power plant’s boiler management system; initially reducing fuel consumption by $3 million annually and increasing power generation output by 3 MWe. Project Approach Using proprietary analysis tools, Gap Engineering studied boiler management system performance to identify opportunities for energy savings and megawatt production optimization. The study yielded several projects driving more stable operation of the steam system including: Soot blowing system timing
modifications; optimizing boiler air injection
Soot blower steam relocation to downstream of the turbine’s first stage; minimizing steam system pressure swings
Coke Reclaimer stacking adjustments; homogenizing the BTU value and moisture content of the coke feed
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Case Study
Following study completion, Gap
Engineering personnel provided
programming, engineering, cutover,
commissioning, and startup support for
the PLC upgrade project; including
modifications to soot blowing system
timing. Follow-on projects remain to
relocate soot blower steam and adjust
Coke Reclaimer stacking.
Value Delivered
Process stabilization achieved through
soot blowing system timing adjustments
enabled more constant boiler
temperatures and megawatt output.
Consequently, coke and limestone
consumption was reduced by $3 million
annually and output increased by 3
MWe. Total emissions per MWe
generated were proportionally reduced.
Additional performance gains and
emission reductions remain available
through implementation of soot blower
steam relocation and Coke Reclaimer
stacking adjustments. All project work
was completed on-time, on-budget, and
on-quality; supporting aggressive
outage schedules.
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Copyright © 2016 by Gap Engineering All rights reserved. TM
Carbon Emission Avoidance
Identifying the overall utility and individual coal-fired
power plant carbon emission avoidance value potential
and driving its realization through one or more initiatives
can be achieved using a five step approach that
includes:
Current State Assessment - Baselining the current
state performance of each generating unit/station and
the utility’s overall emissions base; identifying the
body of improvement opportunities, their costs and
impacts on utility total and station-specific carbon
emissions.
Vision and Strategy Development - Establishing the
utility’s long-term emissions goals based on rigorous
investment analysis; prioritizing the carbon emission
avoidance improvement opportunities.
Project Planning - Developing both a short-term
quick win carbon emission avoidance action plan and
long-term emissions reduction roadmap supported by
initiative specific business cases and funding.
The Path Forward
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The Path Forward
Implementation - Executing on the approved carbon
emission avoidance initiatives; enhancing
performance of the utility’s coal-fired generation
assets and operational programs.
Sustain and Improve – Monitoring and tuning the
utility’s overall and station level carbon emission
avoidance strategy and implementation efforts to
ensure gains made are locked-in and improved upon
in the long-term.
Fundamental to the success of this approach is an
organizational understanding of the economic,
environmental, and societal value drivers and their
contribution to revenue growth, operating margin
enhancement, asset efficiency improvements, and
stakeholder expectations.
Throughout the carbon emission avoidance
implementation process, senior utility leaders will need
to communicate these benefits to shareholders,
customers, employees, regulators, and the community
at large. Each group will be instrumental in a
successful implementation yielding heightened financial,
environmental, and goodwill returns.
12
Copyright © 2016 by Gap Engineering All rights reserved. TM
Carbon Emission Avoidance
In order to meet the rising demand for affordable electricity and address
concerns for global climate change, utilities must improve the performance of
their existing coal-fired power plants.
Even without the requirements of the Clean Power Plan and Clean Air Act, the
economic benefits associated with carbon emission avoidance initiatives
warrant their implementation.
Regardless of whether the Clean Power Plan’s 2030 emission standards are
upheld, carbon emission avoidance projects financially reward coal-fired
generation utilities and better position them for the emission standards of
tomorrow.
The Time to Act is Now
14 Gap Engineering
Copyright © 2016 by Gap Engineering All rights reserved. TM
Mike Homma
President and CEO [email protected] 281-804-6234
Sally White Chief Relationship Officer [email protected] 801-580-7757
We Can Help Take These Steps To The Next Level
In these difficult times, we are asking ourselves different questions. How do I save energy? How do I run more efficiently? How do we get the same amount of work done with less people? or How do I get more done with the same amount of people?
Although many of these questions have been on our minds, they are currently in the forefront and in many cases determine if you will be in business tomorrow. All of industry is building new projects to increase capacity, debottleneck plants and build additional infrastructure. Gap Engineering has some of the most senior people in the industry and can make bring these projects in on time and within budget. Call us today and let Gap Engineering take your business to the next level!
This publication contains general information only and Gap Engineering is not, by means of this publication, rendering business or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.
Gap Engineering, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.
Copyright © 2016 by Gap Engineering All rights reserved. TM
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