Gasification Technologies 200715 Oct 2007, San Francisco

Nuon MagnumElectricity of the futureRien van Haperen Director Nuon Magnum IGCC projectRobert de Kler Head Engineering Services Nuon TPD

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Düsseldorf

Amsterdam

BrusselsBelgium (120 FTE):• (Selective) production and sales

Netherlands (9,000 FTE):• Generation, trading, distribution, sales

Germany (250 FTE):• Management of industry parks, and public lighting activities (eg. Berlin), (selective) production, sales

‘Grey’ generation assets Renewables

Nuon is an independent, international energy company based in the Netherlands, with focus on North West Europe, striving for balanced growth for all stakeholders. Nuon is a frontrunner in sustainability.

Europe:• Trading and renewable production

Frontrunner highlights:• Nuon Magnum – 1200 MW multifuel plant (2010)• Buggenum – coal gasification, syngas development• Gas – gas storage development• CO2 – storage + first forward deal with Shell • Norway – first mover in wind market with Statkraft• NoordzeeWind – 108 MW first offshore wind farm in NL• Renewable – 410 MW installed capacity in 7 EU countries• “Grey” – 3500 MW installed capacity, dominantly gas fired

Overview Nuon

3

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Lim

it en

ergy

dem

and

Use renewableenergy

Use fossil fuels as efficiently and cleanly as possible

Smart metersDemand Response

Energy advice

Education Wind

Biomass co-firing

Stimulate green demand

SolarHydro

Technology development:

- Multi-fuel (coal and biomass)

- Gasification technology

- CO2 in house abatement

- Potential for CO2 capture & storage

Nuon’s sustainable strategy based on Trias Energetica

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Nuon’s choice for gasification

• Replacement of existing older assets•Several older units will come at the end of their lifecycle during the next decade•Further development of a sustainable power generation fleet•Nuons investment choice will be Best Available Technology of the future

• Gasification is one of the most versatile and clean ways to generate energy from solid and/or liquid fuels

•High efficiency due to integration with combined cycle technology•Ability to fire a large range of fuels including biomass•Emissions significantly lower than for conventional coal fired units: future-proof

• Gasification is advanced coal technology of the (near) future

•Nuon has extensive Engineering and Operational knowledge in the field of (coal) gasification technology and low caloric fuel fired (dual fuelled) gas turbines;

•Nuon is still developing gasification in Buggenum: modifications, biomass, syngas-start-up, secondary fuels, CO2 capture, ..

Nuon´s competitive edge: the Buggenum experience

Buggenum is the first fully integrated gasification plant with a Combined Cycle. The unit has been commissioned in 1994. In the first years the unit served as a demonstration plant from which it switched smoothly into commercial operations starting in 2001. In the time span 2001-2004 the unit was operating predominately as a swing unit, optimising Nuon´s power position (long or short). As from 2005 the unit will be fuelled with biomass up to 30% (mass) bases.

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Buggenum Performance

Commissioning date: 1993Fuel input:

Up to 2000 t/d of coal Up to 20% of biomass

Plant electric capacity: 253 MWe

Electric efficiency (LHV): 43%

Plant statistics:

0

2000

4000

6000

8000

1993 1995 1997 1999 2001 2003 2005 2007

hou

rs /

yea

r

5000 plant modifications

1 23

4

0

20

40

60

80

100

%

Mercury

Dust particles

Acidification

SO2

NOx

CO2

22% less CO2 when co-gasifying biomass

1. Old generation coal-fired power plants

2. Current generation coal-fired power plants

1. Buggenum power plant (natural gas)

2. Buggenum power plant (coal gas)

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Nuon is developing a multi-fuel power plant, Nuon Magnum, based on coal

gasification technology in the Eemshaven (Groningen, Northern Netherlands).

Proven technology for future steps

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Characteristics Magnum Project

•Clean Coal Technology: Gasification and Combined Cycle

Technology

•Fuel flexibility: Multi Fuel Concept

•Peak and base-load plant

•Net Power output app. 1200 MWe

•Shell Gasification Technology (3 x 2000 tpd)

•3 State of the Art Combined Cycle Units

•Commercial plant from beginning, no Demo

•Proven technology where possible

•CO2 capture ready

•2011 start commercial operation

•Site: Eemshaven

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Simplified flow diagram

By-p

rod

ucts

CO

2

Entrained flow gasifier Wet gas cleaning

Acid removalWaste water treatmentDemi water production

Combined Cycle Dual fuelled Gas Turbines (Syngas, Natural gas fired)

otal heat input 2600 MWthTotal net electrical output 1200 MWe

Oxygen and Nitrogenproduction

Gasifier(3 units)

CC(3 units)

Power

Nat.G

as

Air Separation

Unit

Steam / Heat

Emissions

N2

Syngas

Power

Air

O2

Coal

Sec. Fuels

By-p

rod

ucts

Section 1: Gasification

Section 2: Air Separation

Section 3: CCGT

Gas cleaning

Steam

CO2capture

Solid Biomass

Ch

em

icals

N2

Co

olin

g W

ate

r

Ch

em

icals

/W

ate

r

Em

ission

s/Fla

re

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Tendering: overview

Natural Gas

Power Heat

CCU

CCGT

CCGT

CCGT

Stevedore Gas receiving station

ASU

ASUOTF

CoalBiomass N2 O2

Gas Cleaning

Gasification EPC

Fuel Preparation

Gasifier

Gasifier

Gasifier

Slag Fly-ash Sulphur

Syngas

Steam

ST

MAC

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Market Experiences lead to Phased Approach

Contractor market is difficult:Quotations very highPrice uncertainty is highLonger delivery schedulesSevere constraints in ConstructionMultiple potential critical pathsOriginal LSTK-approach not supported

Nuon has adapted its mindset:More open-book-type of approachEvaluation of Magnum at a higher price-level than expectedStill believer of multi-fuel conceptSeeking a feasible route to realization in a sellers market

Nuon has announced a phased execution of Magnum: CCU first, followed by gasification

+€

FullScope

Phase 1 Phase 2

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Planning for CCU in line with Original Planning

Start comm. operation

Commissioning

Building phase

Detailed design

Permit

Engineering

Site + O&M

Commercial

Site Selection

Project strategy

2011201020092008200720062005PlanningActivities

Nuon invests 60 – 70 million euro in the project development phase

FID

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Outlook Phase 2: Business Case Improvements

Business Case

•Review actual set-up•Plot plan improvements

•MDEA i.s.o. Sulfinol

•BoD-review:•Review original set-up

•Turndown requirements

•CO2-inclusion•Profile IGCC

•More integrated design•European Flagship Programme?

•Revenue improvement•Biomass

•Sale of syngas, CO2, H2•Enhance ASU?

•Contract Structure•Reimbursable i.s.o LS

•Separation of ‘EP’ and ‘C’

•Partnering?

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Original Planning CO2 capture and storage

Design CO2-demo Buggenum

Start CO2-capture Magnum

Building CO2-capture Magnum

Prepare CO2-transport/storage

Commissioning Magnum IGCC

Design review Magnum

Design CO2-capture Magnum

Testing

Building CO2-demo Buggenum

2013201220112010200920082007

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Planning Magnum Phase 2 including CCS

Design & Build CO2-demo Buggenum

Start CO2-capture Magnum

Prepare CO2-transport/storage

Commissioning Magnum Phase 2

Construction Magnum Phase 2 with CCS

Develop Magnum Phase 2 with CCS

Construction Magnum Phase 1 (CCU)

Test CO2-demo Buggenum

2013201220112010200920082007

Present planningRevised planning

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CO2 capture installation CO2 capture installation

Magnum

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Two dynamic simulators of a IGCC power plant (process + controls), 40-100% load

1. Buggenum IGCC , incl. validation with operational data 2. Magnum IGCC design (3 gasifier trains, compressor station,

3 CCU’s), including overall controls (based on syngas demand control)

IGCC simulator Buggenum & Magnum

These simulations comprise:

Gasification: feedstocks: free parameterizable ultimate analysis, incl. minerals, soot and lime, equilibrium chemistry with gas components CO, H2, H2O, CO2, H2S, COS, N2, Ar, NH3, CH4, HCN, radiative heat exchange with reactor membrane wall, slag holdup at membrane wall; slag viscosity, slag flow and thermal conduction

Syngas cooler, fly ash removal, wet scrubbing, syngas recycle, HCN/COS conversion, H2S absorbing, flash gas recycle, saturation

Compressor station, 3 parallel compressors with anti surge

CCU combined cycles running on syngas and NG

Specific simulations are made for:Compressor station responses in case of gasifier / compressor / GT trips Gaseous oxygen buffer dynamics

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Post- vs. Pre-combustion CO2 capture

Fuel

CO2

Pre-combustion Post-combustion

Higher partial pressure of CO2allows for bulk removal methods

Technology already available and proven in chemical industry

Limited impact on a plant

Limited energy consumption

No hazardous wastes

LHV loss (syngas)

Low partial pressure of CO2 requires deep removal methods

Technology requires further development

Significant impact on a plant due to a large unit size and substantial steam off-take

High energy consumption

Large quantities of hazardous wastes

Fuel

CO2

Flue gas Flue gas

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Pre-combustion at Nuon Magnum -- separation

Very expensive, because of large quantity of adsorbent required, no industrial experience.

Much industrial experience exists for various solvents, including syngas applications.

No industrial experience exists with membranes to separate CO2 from syngas.

Cryogenic separation section would not significantly improve the specific energy consumption or allow lower investments, 90 % separation efficiency doubtful

Solids adsorbents Membranes

Cryogenic separation

Solvent absorption

The required solvent properties:Non-corrosive,Stable,Inexpensive,Non-foaming.

Physical or chemical

Physical solvent is found to be the most effective?

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CO2 capture readiness

Capture readiness is not limited to reserving plot space!

One needs to study many more issues:Identify CO2 sinks

Develop technological concept and study impact on a plant

Assess pre-investments

Reserved plot space

Study business case

Identify CO2 sinks

Study design and integration with a plantReserve plot space

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Pre-combustion at Nuon Magnum

Building in stages

100%Overall

0.006%Other

0.867%Ar

7.726%N2

2.017%CO2

28.655%H2

60.212%CO

0.518%H2O

0% CO2 capture

100%Overall

0.005%Other

0.737%Ar

6.567%N2

1.714%CO2

24.359%H2

51.185%CO

15.432%H2O

0% CO2 capture

100%Overall

0.005%Other

0.724%Ar

6.691%N2

2.810%CO2

38.979%H2

35.222%CO

15.569%H2O

27% CO2 capture (1 train)

Sulfinol M Saturator Compressor

CO2 capture unit

33

%Sy

nga

s

H2

CO2

0.005%Other

100%Overall

0.712%Ar

6.810%N2

3.868%CO2

53.092%H2

19.813%CO

15.702%H2O

54% CO2 capture (2 trains)

Burner tips replacementProven technology

New burner replacement Being tested

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Pre-combustion at Nuon Magnum

Carbon transport throughout the plant

Gas

ific

atio

n

C in coal

C in biomass

C in limestone

Gas cleanup

Shift Separation

Pressuri-zation

Gas turbines & HRSGs

Sulfur plants & Tail gas

incineration

Raw syngas

60% CO, 30% H2

CO2 in acid gas

CO & CO2 in syngas Capture unit bypass

CO/CO2 lean

CO2 rich

Liquid CO2 for sequestration

CO2 capture unit

CO2 in tail gas

CO2 in flue gas

Emitted CO2

Power & steam

C in natural gas

A minor part of the CO2 travels with the H2S rich stream from the acid gas regenerator to the sulfur plants. The tail gas from these sulfur plants is incinerated, thereby emitting some sulfur as SO2 and all the CO2 present.

The existing Sulfinol unit (selectively absorbing H2S) and the sulfur plants, including tail gas treating, will be used also in case the capture plant is on line.

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Pilot plant

2007 2008 2009 2010

Preparation phase

Building phase

Test phase

Permitting

R&D program

Design Phase

Pilot plant features

Simplified process incl. shift reactors and absorbtion section

Testing catalyst and solvent durability

Testing operation flexibility and performance

Approx. 2.5% of the syngas flow

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Unit integration with the Buggenum plant

SulfinolAbsorber

CO2 demoplant

Saturator

• ~1.0 kg/s taken from the main syngas stream

• Hydrogen rich stream returned to the Buggenum plant

• Hydrogen content of the syngas increased by 4.6% (within limits of the GT)*

• Steam and water taken from the Buggenum utilities

* Limit of GT after dilution 9.9-12.4 mole % H2

syngas 40 kg/s

1 kg/s H2 0.5 kg/s

CO2 1.1 kg/swater 0.6 kg/s

steam 0.6 kg/s waste water 0.6 kg/s (will be reused)

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Cooperation in CCS chain in Northern Netherlands

Nuon is actively searching for cooperation in the CCS chain. Therefore a declaration of intent has been signed with the province of Groningen and the Ministry of Environment (April 27, 2007)

mr. Alders, province of Groningen, mr. Van der VlistMinistry of Environment, mr. Van Halderen, Nuon

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Thanks