CFB Firing of Petcoke for Repower Applications By Scott L. Darling Commercial Director Foster Wheeler North America Corporation.

CFB Firing of PetcokeCFB Firing of Petcoke for Repower Applications for Repower Applications

By Scott L. DarlingBy Scott L. DarlingCommercial DirectorCommercial Director

Foster Wheeler North America CorporationFoster Wheeler North America Corporation

0

2,100

Bill

ion

KW

hrs

Renewable(excl. Hydro)Natural Gas

Nuclear

Coal

Fuel Use In Electricity Generation

Increasing Natural Gas Demand Driven Increasing Natural Gas Demand Driven By Utilities For Electricity GenerationBy Utilities For Electricity Generation

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Source: EIA

“The number of producing gas wells has tripled since 1971, while production has declined, clear indication that existing basins are becoming tired…”

Natural gas deregulated

Number of Producing Natural Gas Wells in Number of Producing Natural Gas Wells in U.S.U.S.

0

5

10

15

20

25

1970 1975 1980 1985 1990 1995 2000

T F

t3

1994199420022002

Source: EIA

“Domestic production peaked back in 1971…”

U.S. Dry Natural Gas ProductionU.S. Dry Natural Gas Production

0246

8101214

J an-

94

J an-

95

J an-

96

J an-

97

J an-

98

J an-

99

Dec-99

Dec-00

Dec-01

Dec-02

$/mm Btu

Sources: EIA, Wall Street Journal

Floor below $2

Floor above $4

Natural Gas Price Is RisingNatural Gas Price Is Rising

High Fuel Price

Gas is a premium fuel

Increased demand, limited supply has increased gas prices

Typical gas price; $4-6/mm Btu

Volatile Fuel Price

Weather and other effects can produce significant gas price spikes

Low Boiler Efficiency

High H2 content means high H2O vaporization losses

Gas-Fired Boilers: High Operating CostsGas-Fired Boilers: High Operating Costs

Low Fuel Price Coke is a refinery byproduct

Coke price close to delivery cost

Typical coke price < $1.00/mm Btu

Relatively Stable Fuel Price Similar to coal

Broad Fuel Flexibility Can co-fire opportunity fuels such as biomass, etc.

High Boiler Efficiency

Low H2 content means low H2O vaporization losses

Coke-Fired CFB Boilers: Low-Cost Fuel Coke-Fired CFB Boilers: Low-Cost Fuel Provides Low Operating CostsProvides Low Operating Costs

CFB Repowering Requires Low Investment CFB Repowering Requires Low Investment CostCost

• Replace gas-fired boilers with CFB boilers, by adding the following equipment;• New CFB boiler w/ baghouse

• Solid fuel storage, handling

• Limestone and ash storage, handling

• Foundations, electrical, controls

• Re-use existing turbine-generator, balance of plant equipment

CFB Repowering Requires Low Investment CFB Repowering Requires Low Investment CostCost

$/kw

800

1000

1200

1400

1600

1800

2000

2200

20 40 60 80 100

MW, net

$/k

w Greenfield

Repower

Coke-Fired CFB Repowering: Operating Cost Coke-Fired CFB Repowering: Operating Cost Savings Provide Rapid Payback of Investment Savings Provide Rapid Payback of Investment

CostsCosts

Payback Calculations Based on:

Gas Price Range: $4 – 7/mm Btu

Coke Price: $0.75/mm Btu

Boiler (Plant) Size: 35 – 100 MWe (net)

Capital Cost: $960 - $1250/low

Payback: Simple Payback

Coke Fired CFB RepoweringCoke Fired CFB RepoweringProvides Rapid Payback of Investment Provides Rapid Payback of Investment

CostCost

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

$4.00 $5.00 $6.00 $7.00

Gas Price - per MMBtu

Pa

yb

ac

k -

ye

ars

35 MW

50 MW

75 MW

100 MW

Petcoke Fired CFB:Petcoke Fired CFB:Lower Power Cost Than NGCCLower Power Cost Than NGCC

20 Year Levelized COE

0

1

2

3

4

5

6

7

Cen

ts/k

Wh

CFB RepowerPetcoke

NGCC

Capital

Fixed O&M

Variable O&M

Fuel

($.75/mmBtu)

($4.00/mmBtu)

3.82

6.19

Leading the WorldLeading the Worldin CFB Technologyin CFB Technology

* Equivalent to over 27,500 MWe Excludes CFB’s Designed in China

0

50

100

150

200

250

300

350

400

450

500

77 79 81 83 85 87 89 91 93 95 97 99 01 03

Number ofCFB Boilers

Year of Sale

Source: McCoy Power Reports

CFB Technology Is Mature:CFB Technology Is Mature:Over 480 CFB Boilers Worldwide*Over 480 CFB Boilers Worldwide*

Based on MWeSource: McCoy Power Reports

Foster Wheeler:Foster Wheeler:Market Leader In CFB Technology 1977 - Market Leader In CFB Technology 1977 -

20032003

Foster Wheeler47%

B&W 2%

Babcock Borsig 2%

Kvaerner7%

Lurgi/Lentjes12%

Alstom30%

• Over 200 Units in Design/Operation

• 300 MWe Units in Operation

• 460 MWe Unit in Design

• Units in Service Over 24 Years

• Experience with a Range of Fuels

• High Availability Demonstrated

• Sizes to 600 MWe Offered

Foster Wheeler:Foster Wheeler:Leading The World In CFB TechnologyLeading The World In CFB Technology

Oil Refinery Bottoms Natural Gas Peat Agricultural Waste

– Woodwaste– Rice Husks– Bagasse Pith

Tires Sludge Refuse Derived Fuel

Coal

– Anthracite

– Bituminous

– Sub-Bituminous

– Lignite

Waste Coal

– Bituminous Gob

– Anthracite Culm

Petroleum Coke

– Delayed

– Fluid

Oil Shale

CFB Technology Offers Fuel FlexibilityCFB Technology Offers Fuel Flexibility

Feature

Low FurnaceTemps.

Hot CirculatingSolids

Long SolidResidence Time

Benefit

Low NOx

Low SO2

Fuel Flexibility

Handles PoorFuels

Simple FeedSystems

Good FuelBurnout

Good SorbentUtilization

1500-1700oF

15-16 ft/sec

Air

Limestone1/20” x 0

Air

Flue Gas1500-1700oF

Fuel1/2” x 0

CFB Process Design Offers Significant CFB Process Design Offers Significant AdvantagesAdvantages

BackpassFurnaceCyclone

Foster Wheeler CFB:Foster Wheeler CFB:Improved Performance With Less Improved Performance With Less

EquipmentEquipment

Plant Size Fuel RemarksNISCO 2 x 120 MWe Pet Coke Replaced Gas-Fired(Louisiana) Boilers

Turow 3 x 235 MWe Brown Coal Replaced Coal-Fired (Poland) PC Boilers

Centerior-Bay Shore 1 x 180 MWePet CokeReplaced Coal-Fired (Ohio) PC Boilers

JEA-Northside 2 x 300 MWe Pet Coke Replaced Oil/Gas Fired(Florida) Boilers

SIPC 1 x 120 MWe Waste Coal Replaced Coal-Fired(Illinois) Cyclone Boilers

Foster Wheeler Has SignificantFoster Wheeler Has SignificantExperience With CFB RepoweringExperience With CFB Repowering

Location

Westlake, Louisiana (USA)

Unique Features

• IPP Project With EPC Contractor

• Repowering of 25+ Year Old Gas Fired Plant

• 2 x 120 MWe CFB Boilers

• World’s Largest Petcoke-fired CFB’s

• IPP Project Based on Petcoke From Nearby Refineries (Citgo, Conoco)

• Low Cost Fuel and Commercial Uses for CFB Ash

NISCO: First Petcoke RepowerNISCO: First Petcoke Repower

Capacity, Mwe (g) 2 x 120Steam Flow, (SH/RH) 825/727Steam Pressure, psig (SH/RH) 1625/464Steam Temperature, °F (SH/RH) 1005/1005

Major Dimensions Furnace Height, ft. 112Furnace Width, ft. 42Furnace Depth, ft. 20Cyclone Diameter, ft. 18.7

NISCO: First Petcoke FiringNISCO: First Petcoke Firing

Fuel Coke

Moisture, % wt 10.6Ash, % wt 0.3Sulfur, % wt 4.5HHV, Btu/lb 13,454

Schedule

Contract Award November 1989

Start of Erection June 1990

Commercial Operation August 1992

Availability

Boiler Availability, 96.1%

NISCO: First Petcoke RepowerNISCO: First Petcoke Repower

Parameters Guarantee Test

Capacity, klb/hr 825 908

Boiler Efficiency, % 83.7 90.3

NOx, lb/106 Btu 0.6 0.13

SO2, % Removal (lb/106 Btu) 90 (0.39) > 91

(0.38)

CO, lb/106 Btu 0.06 0.01

Hydrocarbons, lb/106 Btu 0.008

0.001

Limestone Flow, klb/hr < 38 < 19.5

NISCO: First Petcoke RepowerNISCO: First Petcoke Repower

LocationJacksonville, Florida, USA

Unique Features– Replaces Two 275 MWe Oil/Gas-Fired Boilers With two 297.5 MWe

Coal/Petroleum Coke Fired CFB Boilers (Northside Units 1 and 2)

– World’s Largest CFB Boilers in Operation

– DOE Cost Sharing For Unit 2 (Part of Clean Coal Technology Program)

– After Repower, Northside Emissions Will Be 10% Lower Than Current

(Even Though Unit 2 Currently Out of Service)

JEA: Utility CFB RepowerJEA: Utility CFB Repower

Capacity, Mwe (g) 2 x 300Steam Flow, klb/hr (SH/RH) 1991/1771Steam Pressure, psi (SH/RH) 2620/580Steam Temperature, °F (SH/RH) 1005/1005

Major Dimensions Furnace Height, ft 115Furnace Width, ft 85Furnace Depth, ft 22Cyclone Diameter, ft 3 x 24

JEA: Utility CFB RepowerJEA: Utility CFB Repower

Fuel Petcoke Coal

Moisture, % wt 9.0 5.2Ash, % wt 0.4 12.8Sulfur, % wt 6.7 2.8Volatiles, % wt 9.0 35.6HHV, Btu/lb 14,000 12,690

EmissionsSO2 0.15 lb/106 BtuNOx 0.09 lb/106 Btu

Schedule

Contract Award August 1999Start of Erection June 2000Commercial Operation May/July 2002

JEA: Utility CFB RepowerJEA: Utility CFB Repower

JEA: Utility CFB RepowerJEA: Utility CFB Repower

PARAMETERS GUARANTEE TEST

Capacity, klb/hr (SH/RH) 1993/1773 1950/1734

Boiler Efficiency, % (Coke/Coal)90.16/87.57 91.04/88.20

SO2 Capture, % (Coke/Coal)

Boiler 90/90 89.5/99.4

Boiler & Scrubber 98/98 98.5/99.7

SO2, lb/106 Btu (Coke/Coal)

Boiler 0.75/0.75 0.96/0.023

Boiler & Scrubber 0.15/0.15 0.134/0.010

NOx, lb/106 Btu (Coke/Coal) 0.09/0.09 0.02/0.04

CO, lb/106 Btu (Coke/Coal) 0.22/0.22 0.02/0.06

Repowering with Foster Wheeler CFB Repowering with Foster Wheeler CFB Boilers:Boilers:

A Key Strategy to Reduce Costs A Key Strategy to Reduce Costs

Natural gas prices are high and likely to remain high

Switching from gas to solid fuel drastically reduces operating costs

Repowering with CFB boilers minimizes investment cost

Reduced operating cost rapidly pay back the repowering investment

FW has the most CFB experience in the industry

FW has the most mature, efficient, reliable CFB design in the industry