Comparative advantages of Orimulsion , LNG and Petcoke

Power Plant Technology, Finland4.6.2002 / THd

Private Power in Central AmericaMiami, June 13-14, 2002

Managing DirectorWasa Pilot Power Plant

Wärtsilä Finland Oy

Thomas Hägglund

Comparative advantages of Orimulsion®, LNG and Petcoke


Alternative fuels for power production

�Orimulsion®�Bitumen-water emulsion produced in Venezuela, introducedinto the market in 1985

�LNG�Liquefied natural gas transported by big carriers all over theworld

�Petcoke�Raw petroleum coke, solid residue fuel that is a major by-product from Petroleum Refinery



Orimulsion® the fuel

� Bitumen-water emulsion with a water content of 30 %� Produced in Venezuela only and marketed by Bitor, an affiliate

of the Venezuelan National Energy Corporation PDVSA� Production today 6.2 million tons/year� Orinoco bitumen resources 150 billion tons, of which 1/3 can be

utilised with today´s technology� Sulphur content 2.8 % which asks for flue gas cleaning

technology� Almost all Orimulsion® today is used in thermal power plants

equipped with FGD technology



Orimulsion® transportation and price:

� Orimulsion® is transported in Double Hull Vessels in a similarway as HFO

� Transportation costs higher than HFO due to lower heat value(water content 30%)

� Price of Orimulsion® not directly indexed to crude oil prices� Long term fuel supply agreements with fuel price indexed to

coal or HFO provided by Bitor� Price level of Orimulsion® is typically just above coal price� High transportation costs make the price dependent on

distance to Venezuela



HFO and Coal fuel price variation

0

20

40

60

80

100

120

140

160

180

200

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

$ / t

on

Coal (Spot CIF Price, NW Europe, $/t basis 6,000kcal/kg NAR)

HFO (Rotterdam FOB 1 % S)

HFO (Rotterdam FOB 3,5 % S)


Power generation by Orimulsion®:

� Orimulsion® 400 can be used in existing HFO or coal boilerswith no de-rating of existing boiler output and efficiency

� High sulphur content demands FGD for SO2 removal� Ash content level same as HFO, advantage compared to coal� Utilised world-wide as a base load fuel, biggest users are big

thermal power stations in Canada, Denmark, Italy and Japan� Greenfield project with Diesel Power Plant capable of

running on Orimulsion® under construction in CentralAmerica



SK Power, Asnæs640MW

Denmark (1.4 tpa)

� Winner of 1998 Power Plant Award, Power Magazine� Largest generating unit in Scandinavia (HFO/Coal design)� Operating base load with Orimulsion® since 1995� Plant load factor 70-75% MCR� Significant environmental improvement using Orimulsion®� No boiler derate with Orimulsion®-400� <0.1% xs Oxygen (Eco outlet)� Opposed wall fired Low-NOx burners (400mg/Nm³)� 5 field ABB/Flakt (<5mg/Nm³ dust outlet)� WLFO FGD ABB/DB (95% SO2 Removal)

Thermal Power Plant burning Orimulsion®


LNG- Liquefied natural gas

� Fastest growing fuel on the market today� Transported by big LNG carriers all over the world� Big production in Middle East, Indonesia, Australia, Africa,

Norway, Alaska etc.� Biggest consumers are Japan, Korea, Taiwan, Europe, USA etc.� Natural gas is a clean fuel for power generation



LNG transportation and pricing

� LNG is transported in big LNG carriers� Cooling natural gas to -160 ºC keeps it a liquid that can be

transported and stored in double wall tanks� LNG will stay at near constant temperature if kept at constant

pressure� LNG vapour boil off can be used as fuel during transportation� Price of LNG high due to expensive production and

transportation costs� Cost of gas production, liquefaction, transportation and

regasification totally 2,5-3,5 US$/MMBTU depending ontransportation distance!



Power generation by LNG

� Natural gas is a clean easy-to-burn fuel that generates lowemissions

� Natural gas can be used for power production in steam boilers,gas turbine combined cycles and also in gas engines

� Due to high efficiency the choice for big Greenfield powerstations is normally Combined Cycle Gas Turbine CCGT plants

� Normally these big plants are built in combination with a LNGterminal

� Many HFO steam boilers have also been converted to naturalgas use but this is normally done due to environmental reasons

� In the low pressure gas distribution network gas engine basedcombined heat and power CHP plants are the favourable choice



Petroleum coke

� This fuel is a major by-product from Petroleum Refinery� The solid residue left after all valuable liquid and gaseous

components have been extracted from crude oil� Contains a high amount of sulphur and heavy metals from the

feedstock� Production highly depending on the production of the main

products in a refinery� USA is the biggest producer of Petcoke� Japan is a big consumer of Petcoke� Cement plants have been using Petcoke for a long time� New fuel for power generation



Petcoke transportation and pricing

� Petcoke is transported in a similar way as coal, at sea in bigvessels and at land preferable with rail road or by trucks

� Compared to coal transportation costs slightly lower due tohigher heating value

� Price of Petcoke not indexed to crude oil prices� Price of Petcoke is normally below price of high sulphur coal� Big variation in Petcoke price depending on coal price and the

produced amount of Petcoke� Long time fuel supply contracts available� Major part of the delivered fuel costs are transportation costs



Power generation by Petcoke� Due to slow combustion rate and high sulphur content Circulate

Fluidised Bed CFB boilers are most suitable for Petcoke use� Petcoke is preferably mixed with coal in combustion� Gasification of Petcoke is also one possibility, but this kind of

plant is normally built in connection with a refinery� Use of limestone in the CFB boiler will effectively reduce

sulphur dioxide emissions� High nitrogen content in the fuel can be compensated by staged

low NOx combustion in the boiler� Ash content is lower than coal, which can be an advantage in

some projects� CFB ash disposal is driven by a case by case analysis

�Use as road base material is one option for the ash



Power Plant comparison by fuel type

Fuel type Orimulsion® LNG Petcoke

Plant size, MW 150 500 250Plant type Diesel PP CCGT CFB boilersInvestment cost, US$/kW 900 600 1500Construction time, years 1,5 2,5 3Heat rate BTU/kWh 8200* 7000 9500

* Simple cycle plant



Comparative Advantages of Orimulsion®, LNG and Petcoke

New technologies:

�Big diesel power plats capable of running onOrimulsion®

�New big gas engines for power production


Orimulsion® Heavy Fuel Oil

Water content, %w/w 28 - 30 �� 1Median droplet size, µm 13 -15 - Density (15°C), kg/m3 in air 1000 -1020 930 -1010Viscosity, mPa.s at 30°C 200 - 350 2,400

at 50°C 145 - 220 500Net calorific value, kJ/kg 28,000 41,000Sulphur, %w/w 2.8 - 3.0 1 - 4Ash, % w/w < 0.1 < 0.1Vanadium, ppm 320 100 - 300Surfactant, % w/w 0.2 -(main component alcohol ethoxylate)

Orimulsion® fuel characteristics (typical)


Wärtsilä Orimulsion® Development MilestonesActivity 1996 1997 1998 1999 2000 2001

Total Running Experience 9700 h

1995

Function & Endurance Test 6L46(New Inj. System) Trieste

Pilot Installation 6L46 Guatemala(Fuel Treatment, Engine & ESP)( 7,000 ton consumed )

Full Scale test WPPP, 12V64 +12V46, 38 MW + FGD (14,600 tonconsumed)

Laboratory Combustion Bomb andSingle Cylinder Test

Endurance Test 531h 4L32 (FuelTreatment, ESP, Boiler) Espoo

Laboratory Evaluation Tests 40h 6L46Vaasa


Key Issues for Successful Orimulsion® Operation

� Stability How to keep the fuel stable in storage tanks, heaters separator, filters, pumps etc.?

� Capacity To adjust the fuel treatment and injection systems to the increased flow (LHV HFO = 40 MJ/kg, LHV Ori = 28 MJ/kg)?

� Impurities How to successfully separate impurities from the fuel in separators and filters, without affecting the water?

� Viscosity How to preheat the fuel to reach good atomizing without steam pockets or cavitation?

� Ash How to avoid burned valves and piston hot corrosion with high Vanadium, Nickel and Sodium contents?

� Ignition How to ensure the ignition for a low quality ignition fuel? deposit formation in the engine?

� Emissions How to find working techniques to reduce SOx, NOx and particles if required?


Orimulsion® Pilot Plant - Guatemala� 4xW18V46 engines running on HFO (60 MW).� 1xW6L46 engine running on Orimulsion® (1999-2001). Engine info:

� Engine speed: 514 rpm� Engine electrical output: 5 MW


Orimulsion® Pilot Plant (W6L46) - Guatemala

� This test was made to get running experience with Orimulsion®, eg:� Transport routines� Fuel treatment system (Booster, separator, ..)� Exhaust gas cleaning system (ESP)� Engine component lifetime (Pistons, fuel injection pumps,..)

� The engine was tested during autumn 1999- autumn 2001� Total running hours on Orimulsion®: 4600 h� Total amount of Orimulsion® used: 7000 tons


ESP (ElectroStatic Precipitator) test with 6L46in Guatemala

� Design (ORI mode) max particles: 50 mg/Nm3 (15% O2)

� Measured particles (after ESP):� ORI: 40... 50 mg/Nm3 (15% O2)� HFO: abt. 30 mg/Nm3 (15% O2)

� Running hours: > 6000 h (ORI+HFO)

Note! Particles measured as dry dust, ISO 9096measuring method.


WPPP-Wasa Pilot Power Plant


WPPP - Main operating data

Electricity 38 MW

Maximumelectricity

Heat & Power

33 MW

District Heating 12 MW 30 MW

Electrical EfficiencyHeat Efficiency

Heat and Power

Reduction

53.6 % *17.3%

70.9%

47%43%

90%

SO2 Reduction > 90%

NOx 95%

Hot Combustion Technology

*) On HFO opertation


WPPP - Wasa Pilot Power Plant38 MW Diesel Combined Cycle Plant



FGD system

12V64

Exhaust gas boiler

Exhaust gas boiler

Wärtsilä12V46

Wärtsilä

DeNOx

Steamturbine

DeNOx

Two-pressure steam system


Booster

p = atmospherict < 50 °C ( 20...30) °C

p = atmospherict < 80°C (60°C ) p nom. = 16 bar

t nom. = 160°C

Orimulsion®Storage Tank

BufferTank

DayTank

Separator

Orimulsion® fuel system

ReliefTank

- Inversion process- Pressure increase- Heating (viscosity)- Pumping- Filtration

Filter

SludgeTank

-Particle separation-Note! No Separation of Water

Filter back flush

Cleanleakage oil


ORI engine differences compared to HFO�Injection Nozzle:

�High temperature resistantmaterial

�Customized spray pattern

�Injection pump:�High temperature resistant

material�Optimized clearance�Advanced sealings

�Fuel supply line:�New fuel supply system with

improved sealing technology (forhigh temperature fuel combinedwith high water content)

� Increased pressure� Increased temperature


Orimulsion® operation experience

� Fuel� Important to have a good fuel follow-up to avoid emulsion

breaking etc.

� Possible to “upgrade” the fuel when signs of deterioratingnoticed -> Recommended storage time of 3 - 4 months canbe prolonged to 1 year.

� Fuel treatment� Fuel treatment with centrifuges (separators) possible.

� Fuel system� BITOR´S guidelines should be followed with some additional

requirements.


� Engine (compared to HFO)�Performance

� About the same heat rate

� Somewhat lower output (~9%) due to injection pumprestrictions

�Emissions� NOx abt. 30% lower

� CO abt. the same level

� THC abt. the same level

� SO2 depending on fuel (corresponds to 4% sulphur HFO)

� Particles depending on ash contents, higher than HFO

�O&M� Service intervals and component lifetimes somewhat

shorter due to the high viscosity, sulphur and ash content.




DeNOx System

WarmWater

Urea WaterInjection

NOx Measurement Panel

Reactor with Catalyst

Engine

Urea Dosage Pump

UreaControl

Water Urea-solutionStorage Tank

Mixing Tank

Urea GranulateSilo

Control Panel



NID - The Process

* WPPP has an integrated slaker system (in the humidifier). This picture illustrates an external slaker system

WATER

HYDRATOR

CaO

Ca(OH)2

WATER

FABRIC FILTER

END PRODUCT

DIESEL ENGINE

STACK

*

HUMIDIFIER


� Exhaust Gas Boiler�Increased clogging. Solved with improved soot blowing

system.� Back end cleaning

�Always needed abatement methods for particles and SO2 in exhaustgases.

�ESP tested with good results using ORI and HFO in Finland andGuatemala.

�FGD� Semidry (NID) type tested successfully with ORI at WPPP, Finland.� Wet scrubber (CaCO3) tested successfully with high sulphur HFO

in Manisa, Turkey.�SCR

� NOx removal efficiency excellent.� Problems with clogging (honey comb type).� Tests to be made with improved plate type elements.



Wärtsilä SG-engines

� Gas fuel engine

� Ignition by spark plugand prechamber

� Low pressure gas

=AIR & GAS= INTAKE=

EX**

* *

IN

**** *

*

****

** ****

=COMPRESSION =OF AIR & GAS=

EXIN

IGNITIONBY PILOT FUEL

EXIN


New features� 20-cylinders� Mechanically actuated prechamber gas valve� Starting system with starting air valves� VTG turbocharger and regulating mechanism� WECS 8000

Wärtsilä 20V34SG gas engineCylinder bore

Piston stroke

Engine speed

Mean piston speed

Mean effective pressure

Cylinder output

Cylinder configuration

340 mm400 mm

720/750 rpm 9.6/10.0 m/s 17.7/17.6 bar 385/400 kW

20 V

340 mm400 mm

720/750 rpm 9.6/10.0 m/s 17.7/17.6 bar 385/400 kW

20 V


Main DataTotal electric output: 41 MWElectrical efficiency: 40 %Engine type: 10 x18V28SGYear of commisioning: 1999

Mobile Bay Energy, which has contracted with Wärtsilä to construct a 40 MW gas powerplant to be built near Mobile, Alabama, USA. Mobile Bay Energy is a partnership formed byDuke Energy Corporation and MCN Energy Group, Inc., both of which are large diversifiedenergy companies based in the USA. The Mobile Bay cogeneration plant will be the only source of power and thermal energy forthe liquid natural gas processing facility built on the same site by affiliates of the Mobile Baypartners. The processing facility will operate 24 hours a day, all year round, in island mode.

Mobile Bay, Alabama, USA


Main DataTotal electric output: 24.7 MWElectrical efficiency: 41 %Engine type: 5 x18V34SGYear of commissioning: 1998

Cementos Diamante Samper, part of the Mexican Cemex Group, is a one of the largestcement producers the world. Cemex acquired Cementos Diamante Samper in March 1996. Tocompete effectively in Colombia, Cemex required reliable and cost effective KWh in the longrun. This was made possible only by installing a self generation plant. The plant is located inIbagúe, 200 km south west of Bogotá.

Cementos Diamante, Colombia


Wärtsilä DF-engines� Dual fuel engine

� Ignition by pilot fuel atgas operation

� Low pressure gas

� LFO (HFO) used asback-up fuel

=AIR & GAS= INTAKE=

EX**

* *

IN

**

* * **

*

COMPRESSION==OF AIR & GAS=

EXIN

IGNITIONBY PILOT FUEL

EXIN


Wärtsilä 18V50DF gas engine

Main technical data

500 mm

580 mm

500/514 rpm

9.7/9.9 m/s

20.0/19.5 bar

950 kW

(6, 8, 9 L) (12, 16) 18 V

500 mm

580 mm

500/514 rpm

9.7/9.9 m/s

20.0/19.5 bar

950 kW

(6, 8, 9 L) (12, 16) 18 V

Cylinder bore

Piston stroke

Engine speed

Mean piston speed

Mean effective pressure

Cylinder output

Cylinder configuration


50 MW Gas Engine Power PlantFront View - Common Stack


50 MW Gas Engine Power PlantPower Plant with 3 Power Modules (50 MW)

Exhaust Gas Stack

Air IntakeFilters

Cooling Radiators

EngineGenerator Set


50 MW Gas Engine Power Plant

PLANT PERFORMANCE DATA:

� OUTPUT RANGE (alternator terminal) 16,6 MWe MODULES

� ENGINE EFFICIENCY - shaft 47,0 % (1)� PLANT EFFICIENCY - electrical 45,1 % (1,2)� PLANT EFFICIENCY - CHP 87,5 % (1)� FUEL VERSATILITY NATURAL GAS

+ DIESEL OIL AS BACK UP FUEL� HFO OPERATION OPTIONAL� EMISSIONS TA LUFT

1) Standard ISO reference conditions, 0 % tolerance, gas fuel2) Before step-up transformer


ConclusionsLNG� Clean but expensive fuel� Need big CCGT to be feasible� Suitable for big grids and base load production� Gas engine CHP options in gas distribution networks

Petcock� Low cost difficult to burn fuel� High Power Plant Investment cost� Low thermal efficiency

Orimulsion®

� Single source but stable price fuel� Opportunity to build Diesel Power Plants with 15 MW unit sizes


Comparative advantages of Orimulsion , LNG and Petcoke

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